Karen Rathburn v. Forest River, Inc. and International Motors, LLC

District Court, N.D. Indiana·Decided July 29, 2026·No. 3:25-cv-01031·Unknown

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF INDIANA SOUTH BEND DIVISION

KAREN RATHBURN, ) ) Plaintiff, ) ) v. ) No. 3:25 CV 1031 ) FOREST RIVER, INC., and ) INTERNATIONAL MOTORS, LLC, ) ) Defendants. )

OPINION and ORDER

This matter is before the court on defendants’ motion to dismiss under Federal Rule of Civil Procedure 12(b)(6). (DE # 13.) For the reasons that follow, the motion is granted in part and denied in part. I. BACKGROUND 1 Plaintiff purchased a recreational vehicle from RCD RV Supercenter (“RCD”). (Compl. ¶ 14.) The completed motor home, including the living quarters, was manufactured by Forest River, Inc. (“Forest River”). (Id. ¶ 1.) International Motors, LLC (“International”) manufactured the chassis, which it supplied to Forest River, and it issued a limited warranty covering that chassis. (Id. ¶¶ 1, 8, 9.) Plaintiff alleges that she relied on the existence of International’s warranty when she purchased the vehicle. (Id. ¶¶ 16–17.)

1 The following facts are drawn from plaintiff’s complaint and are accepted as true for present purposes. United States ex rel. Berkowitz v. Automation Aids, Inc., 896 F.3d 834, 839 After the purchase, the motor home began exhibiting a defect that causes the engine warning light to illuminate and the vehicle to enter “limp mode” while being

driven. (Id. ¶¶ 19, 20, 28–30, 70.) Plaintiff presented the vehicle for warranty repair on three occasions – once in Indiana and twice in Ohio – at facilities she alleges were authorized to perform warranty work on International’s behalf. (Id. ¶¶ 4, 5, 15, 28–30.) She alleges that the defect was never repaired and continues to exist. (Id. ¶¶ 31, 44, 70.) Plaintiff alleges breach of express warranty, breach of implied warranty, and breach of “contract of warranty” against both defendants under Indiana and/or Ohio

law. She also asserts a cause of action under the Magnuson-Moss Warranty Act (“MMWA”), 15 U.S.C. § 2301 et seq. Finally, she alleges that International, alone, violated Ohio’s Lemon Law, Ohio Rev. Code §§ 4517.01(Q); 1345.71(B). International now moves to dismiss each claim asserted against it. (DE # 13.) II. LEGAL STANDARD

Rule 12(b)(6) requires the dismissal of allegations that fail to state a claim upon which relief can be granted. A court reviewing a complaint pursuant to Rule 12(b)(6) must construe the allegations in the complaint in the light most favorable to the non- moving party, accept all well-pleaded facts as true, and draw all reasonable inferences in favor of the non-movant. United States ex rel. Berkowitz v. Automation Aids, Inc., 896

F.3d 834, 839 (7th Cir. 2018). Whether allegations state a claim is a question typically governed by the liberal notice-pleading requirements of Rule 8, which requires that a complaint need only contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). This standard does not demand “heightened fact pleading of specifics, but only enough facts to state a claim to relief that is plausible on its face.”

Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007); see also Erickson v. Pardus, 551 U.S. 89, 93 (2007) (“Specific facts are not necessary; the statement need only give the defendant fair notice of what the . . . claim is and the grounds upon which it rests.”) (internal quotation marks and citation omitted). A claim is plausible on its face when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged. Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009).

III. DISCUSSION The court begins with choice of law, because the answer supplies the substantive rules governing every claim that follows. The court then addresses the Ohio Lemon Law claim, the express warranty claim brought through the MMWA, the breach of contract claim, and the implied warranty claim.

A. Choice of Law Plaintiff first suggests that the court need not resolve the question at the pleading stage because her complaint states a claim under the law of either state. The court disagrees, at least as to the implied warranty claim, where the two states’ rules point in opposite directions. Courts in this district routinely conduct a choice-of-law analysis on

a motion to dismiss when differing privity requirements are at issue. See, e.g., Shearer v. Thor Motor Coach, Inc., 470 F. Supp. 3d 874, 884 (N.D. Ind. 2020). A federal court exercising jurisdiction over state law claims applies state substantive law and federal procedural law. Erie R.R. Co. v. Tompkins, 304 U.S. 64, 78–79 (1938); Felder v. Casey, 487 U.S. 131, 151 (1988). Substantive law for this purpose includes the forum state’s conflict-of-laws rules; the court does not automatically apply the law

of the forum, but rather applies the forum’s choice-of-law rules to determine which state’s substantive law controls. Auto-Owners Ins. Co. v. Websolv Computing, Inc., 580 F.3d 543, 547 (7th Cir. 2009) (citing Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487, 496 (1941)). Because this court sits in Indiana, Indiana’s choice-of-law rules apply. Indiana’s choice-of-law rules require, as a threshold matter, a conflict between the candidate states’ laws that is “important enough to affect the outcome of the

litigation.” Simon v. United States, 805 N.E.2d 798, 805 (Ind. 2004); see also Stonington Ins. Co. v. Williams, 922 N.E.2d 660, 665 (Ind. Ct. App. 2010). Both parties identify such a conflict, and the court agrees that at least one exists: Indiana does not require vertical privity for a claim of breach of the implied warranty of merchantability against a remote manufacturer, Hyundai Motor Am., Inc. v. Goodin, 822 N.E.2d 947, 959 (Ind. 2005),

while Ohio does, Curl v. Volkswagen of Am., Inc., 871 N.E.2d 1141, 1147 (Ohio 2007). That difference is plainly outcome-determinative for International, a component supplier who is several links removed from plaintiff. Plaintiff’s claims sound in contract. She alleges economic loss arising from commercial dealings, not personal injury. See Hitachi Constr. Mach. Co. v. AMAX Coal

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Karen Rathburn v. Forest River, Inc. and International Motors, LLC, (N.D. Ind. 2026).

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