Liberty Lincoln Mercury, Inc. v. Ford Marketing Corp.

149 F.R.D. 65, 27 Fed. R. Serv. 3d 861, 1993 U.S. Dist. LEXIS 8084, 1993 WL 197112
CourtDistrict Court, D. New Jersey
DecidedMay 14, 1993
DocketCiv. A. Nos. 92-4178 (AJL), 93-687 (AJL)
StatusPublished
Cited by85 cases

This text of 149 F.R.D. 65 (Liberty Lincoln Mercury, Inc. v. Ford Marketing Corp.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Liberty Lincoln Mercury, Inc. v. Ford Marketing Corp., 149 F.R.D. 65, 27 Fed. R. Serv. 3d 861, 1993 U.S. Dist. LEXIS 8084, 1993 WL 197112 (D.N.J. 1993).

Opinion

OPINION

LECHNER, District Judge.

Currently before the court are a number of related motions in the two above-captioned actions. First, in the action entitled Liberty [68]*68Lincoln-Mercury, Inc. v. Ford Marketing Corp. and Ford Motor Co., Civ. No. 92-4178 (AJL) (D.N.J.) (the “Liberty Action”), plaintiff Liberty Lincoln-Mercury, Inc. (“Liberty Lincoln”) moves for leave to amend the complaint (the “Liberty Complaint”), filed 5 October 1992, and for class certification pursuant to Fed.R.Civ.P. 23.1 Second, in a separate action entitled Warnock Automotive, Inc. v. Ford Marketing Corp. and Ford Motor Co., Civ. No. 93-687 (AJL) (D.N.J.) (the “Warnock Action”), plaintiff Warnock Automotive, Inc. (“Warnock”) moves to consolidate, pursuant to Fed.R.Civ.P. 42, the Warnock Action with the Liberty Action.2 Finally, the New Jersey Automobile Dealers Association (“NJADA”) and the Ford Dealers Alliance (“FDA”) move for leave to appear as amicus curiae3 with relation to these cases.4

For the reasons that follow, the motion by Liberty Lincoln for class certification is denied. The motion by Liberty Lincoln for leave to amend the Liberty Complaint is granted in part and denied in part. The motion by Warnock for consolidation of the Wamock Action with the Liberty Action is denied. The motions by the NJADA and FDA for leave to intervene as amicus curiae are denied.

Facts

A. The Parties

Ford is a corporation organized under the laws of Delaware with its principal place of [69]*69business in Dearborn, Michigan.5 Robertazzi Aff., ¶ 9. Ford manufactures, assembles, distributes and sells motor vehicles to authorized dealers (the “Dealers”) for resale to their customers. Suhay Decl., ¶ 1. Ford’s sales operations have three divisions: a Ford Division, a Lincoln-Mercury Division and a Ford Parts & Services Division. Id.; Rober-tazzi Aff., ¶ 10. The Ford Parts & Services Division is the division of Ford responsible for the sale and distribution of Ford parts and the maintenance of its warranty policy service. Robertazzi Aff., ¶ 10.

Ford has established 123 Dealers and franchisees in New Jersey which sell Lincoln, Mercury and/or Ford vehicles. Id., ¶ 12; Pearson Aff., ¶2. Of these 123 Dealers, there are 38 Lincoln-Mercury dealers, 4 Ford-Mercury Dealers, 7 Ford-Lincoln-Mercury dealers and 74 Ford dealers. Pearson Aff., ¶2. Since 1976, Liberty Lincoln has been one of the 38 authorized Lincoln-Mercury dealers in New Jersey. Id. Liberty Lincoln sells and services new passenger cars, and sells parts and accessories manufactured by the Lincoln-Mercury Division. Id.; Robertazzi Aff., ¶ 5. Since 1984, War-nock and its predecessors have been an authorized dealer of Ford automobiles in New Jersey. Warnock Aff., ¶¶ 5-8. Warnock sells and services new passenger cars, and sells parts and accessories manufactured by the Ford Division. Id.

Liberty Lincoln’s relationship with Ford is premised upon two separate agreements—a Lincoln Sales and Service Agreement and a Mercury Sales and Service Agreement— while Warnock’s relationship with Ford is premised upon a Ford Sales and Service Agreement (collectively, the “Dealer Agreements”). Liberty Moving Brief at 2; War-nock Aff., ¶ 5. These Dealer Agreements are substantially identical, except for appropriate conforming changes involving the names Lincoln, Mercury and Ford. Robertazzi Aff., ¶ 4 & Exs. A & B (copies of Dealer Agreements); Suhay Deck, ¶ 3; Warnock Aff., ¶ 12 & Ex. B (same). Ford has entered into Dealer Agreements with all Dealers authorized to sell and service Lincoln, Mercury or Ford automobiles. Ford Opp. Brief at 5; see also Robertazzi Aff., ¶ 16.

B. Ford’s Warranty Program

Ford maintains a warranty program (the “Ford Warranty Program”) on new motor vehicles sold to its Dealers. Ford Opp. Brief at 5. Under the Ford Warranty Program, “certain repairs, replacements, or adjustments are made free of charge to the consumer.” Id.; Suhay Deck, ¶ 2. These warranties vary from year to year and between product lines. Suhay Deck, ¶2.

The Ford Warranty Program is embodied both in the Dealer Agreements, including Liberty Lincoln’s and Warnock’s Dealer Agreements, and in the Warranty and Policy Manuals (the “Ford Warranty Manuals”) which Ford distributes to its Dealers and updates annually. Id., ¶ 3. The Ford Warranty Manuals are incorporated by reference into the Dealer Agreements. Id.

The Ford Warranty Program imposes a number of requirements upon its Dealers. For instance, Dealers are obligated to perform warranty work on all Ford products which the Dealers are authorized to sell or service, free-of-charge to new motor vehicle owners,6 regardless of whether the Dealers actually sold the original defective products.7 Robertazzi Aff., ¶¶ 14-15. Paragraph 4(b)(1) of the Dealer Agreements provides:

The dealer shall perform all warranty and policy service on each company product it is certified to sell and service, presented by owners, in accordance with the warranty and policy applicable thereto and the applicable warranty manual and customer service bulletin.8

[70]*70Id., ¶ 15; Warnock Aff., ¶ 13. The Dealer Agreements further require the Dealers to give precedence to warranty work over other independent service work undertaken by the Dealers. Robertazzi Aff., ¶ 3 (Dealer Agreement, ¶ 4(b)(3)).

The Dealer Agreements also obligate Ford to reimburse its Dealers for any warranty work performed. Suhay Decl. ¶ 5; Rober-tazzi Aff., ¶ 3. Paragraph 4(b)(4) of the Dealer Agreements provides:

The Dealer shall submit claims to [Ford] for reimbursement for the parts and labor used in performing warranty ... work and [Ford] shall reimburse the Dealer therefore, in accordance with the provisions of the Warranty Manual or campaign instructions and the Dealer’s approved warranty labor rate. The Dealer shall maintain adequate records and documents supporting such claims----

Robertazzi Aff., ¶ 3 (Dealer Agreement. ¶ 4(b)(4)); Warnock Aff., ¶ 12.

Ford employs a uniform national reimbursement formula (the “Reimbursement Formula”) applicable to all Ford, Lincoln and Mercury Dealers in the United States. Su-hay Deck, ¶ 5; Ford Opp. Brief at 6. The Reimbursement Formula employed by Ford is as follows:

When warranty work requires replacement of a part, a Dealer is reimbursed for the cost of the part, plus a markup equal to 40 percent of cost on 1994 model vehicles, 35 percent of cost on 1993 model vehicles and 30 percent on prior years’ models.

Suhay Deck, ¶ 6; Ford Opp. Brief at 6-7. The current Reimbursement Formula became effective on 15 June 1992. Robertazzi Aff., Ex. C. (Letter from Ford, dated 18 May 1992, at 1) (announcing revised Reimbursement Formula).

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149 F.R.D. 65, 27 Fed. R. Serv. 3d 861, 1993 U.S. Dist. LEXIS 8084, 1993 WL 197112, Counsel Stack Legal Research, https://law.counselstack.com/opinion/liberty-lincoln-mercury-inc-v-ford-marketing-corp-njd-1993.