Lieb v. American Motors Corp.

95 F.R.D. 507, 35 Fed. R. Serv. 2d 468, 1982 U.S. Dist. LEXIS 15169
District Court, S.D. New York·Decided September 20, 1982·No. No. 81 Civ. 1004 (RLC)·Published·Cited by 2 cases

Opinion

[508]*508OPINION

ROBERT L. CARTER, District Judge.

Plaintiff in this action for fraud, strict products liability and breach of warranty moves to certify a class of plaintiffs composed of “all persons or entities who purchased Jeep Corporation [(“Jeep”)] CJ-5 jeeps, model years 1977 through 1981, with the exception of purchasers who have sustained physical injury from a rollover of a CJ-5 jeep or who sustain such injury prior to the time this action is tried.” The breadth of this proposed class is so great and the issues of fact and law are so complex and variegated that certification is inappropriate. For the reasons discussed below, the motion is denied.

The complaint alleges that defendants have intentionally sought to deceive the public concerning the safety of the CJ-5 jeep, a popular “utility” vehicle. Approximately 250,000 of these vehicles are registered for use on the American highways and an indeterminate number are in operation worldwide. The gravamen of plaintiff’s claim is that, beginning in 1977 or earlier, defendants have marketed the CJ-5 as a highly stable car suitable for ordinary on-road and highway use while they knew that design defects rendered the automobile susceptible to rollovers during moderate speed turns and that occupant protection systems would not prevent serious injuries in the event of such a spill. Defendants did not alert purchasers of the CJ-5 of these dangers. Moreover, through nationally disseminated sales and promotional materials, including advertisements and written warranties, defendants purposefully and repeatedly portrayed their product as an ideal multipurpose family and recreational vehicle. As a result of this sales campaign, the vehicle buying public perceived the CJ-5 as a means of transportation equally suited for desert sands, river gullies, suburban drives and highspeed freeways and was unaware that the jeep could be driven safely on normal roads only with the exercise of special caution. If driven as an ordinary passenger car, the Jeep is likely to roll over and in that circumstance, the vehicle’s roll bar and seat belts will not protect against serious injuries.

Unaware of these hazards and encouraged by Jeep promotional literature and previous jeep ownership, Lieb purchased a new CJ-5 in 1977. He claims that the defendants, not the dealer who actually sold him the vehicle, defrauded him in regard to the jeep’s safety and suitability for highway driving, breached express and implied warranties concerning the vehicle and caused him to suffer economic loss by charging a price for the automobile that is far in excess of its worth if its safety limitations are known.

Plaintiff seeks compensatory and punitive damages for himself and his class and injunctive relief to require defendants to warn class members of the CJ-5 safety defects and to cease issuing false statements about the vehicle.

As a prerequisite to certification of a proposed class, the would-be representative must persuade the court that the four requirements of Rule 23(a), F.R.Civ.P., — numerosity, commonality, typicality, and adequacy — have been met. See e.g., Greeley v. KLM Royal Dutch Airlines, 85 F.R.D. 697, 700 (S.D.N.Y.1980) (Ward, J.) (burden of persuasion); Feinstein v. Firestone Tire and Rubber Co., 535 F.Supp. 595, 600 (S.D.N.Y. 1982) (Haight, J.) (requirements of Rule 23(a)). Despite the sheaves of paper plaintiff has submitted in support of his motion, there is considerable doubt that certification of the proposed class is appropriate. The principal shortcoming in Lieb’s proposal derives from the breadth of the class he seeks to certify and the nature of the legal claims he asserts. Defendants have made a compelling showing that Lieb, or indeed any individual, could not qualify as a typical class member because the possible claims of the class members are too diverse and perhaps even adverse.

Among the most glaring differences among class members are the variety of vehicles that they have purchased. Lieb alleges defects in CJ-5 handling characteristics and in the jeep’s passenger safety devices. Defendants have shown that in [509]*509the relevant time period, 1977 through 1981, the CJ-5 underwent substantial changes in the nature of occupant protection provided by defendants as standard equipment. In addition, throughout this period class members were likely to have modified their vehicles by the addition of optional equipment purchased through jeep dealers (who are not defendants, but are proposed class members) or automotive suppliers. These modifications certainly affected, sometimes adversely and sometimes favorably, the safety and stability of the CJ-5. The roll bar, for example, was not standard factory equipment on plaintiff’s vehicle and did not become so until April, 1979. The roll bar design, moreover, was altered in January, 1979 to provide improved protection. Finally, in June, 1980 defendants added a shoulder harness to the standard lap belt restraint system. Lieb has not even suggested the court could sort through these different safety features and identify one as a typical configuration. Accepting the allegation that his particular vehicle had latent dangers and inadequate protection does not lead to any conclusion about subsequent designs. Although some design defects may be common to all CJ-5 jeeps manufactured in this time period, the variation in vehicles purchased from defendants is so great that no one vehicle can be considered to give rise to typical claims for the entire class.

Lieb also glosses over differences in the inducements to purchase jeeps that class members experienced. Defendants have shown that they engaged in multiple sales campaigns relying on different portrayals of the CJ-5 in different markets and at different times. Even the plaintiff could not, in deposition testimony, identify with any particularity whatsoever, the nature or the content of the media that induced him to buy his jeep or that created the impression that the vehicle possessed highway handling characteristics equal or superior to regular passenger vehicles. Defendants, by contrast, have introduced unsolicited correspondence from CJ-5 purchasers who are potential class members who unequivocally state that they received printed materials from defendants that warned of the unique handling characteristics of the vehicle and that they otherwise were aware of the differences between driving a jeep and driving a standard automobile. Rather than revealing typicality, a review of the record for certification suggests that the class defined by Lieb is marked by its heterogeneity and that Lieb is in no ways typical of more than a small portion of the proposed class’s numbers.

A further question regarding the typicality of Lieb’s claim that stems from the breadth of the proposed class arises from the inclusion in the class of all purchasers of the CJ-5. This group includes primary purchasers, i.e., entities that purchased directly from defendants, and secondary purchasers, who include persons purchasing from jeep dealers and persons buying used cars from primary or secondary purchasers. Among the primary purchasers are government entities, military authorities and jeep dealers. These class members negotiated their acquisitions directly with defendants; secondary purchasers, such as Lieb, by contrast, negotiated with primary purchasers. The knowledge of jeep handling and safety features of the primary purchasers, and the inducements directed at them must have differed significantly from the knowledge of the inducements directed towards secondary purchasers.

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Lieb v. American Motors Corp., 95 F.R.D. 507, 35 Fed. R. Serv. 2d 468, 1982 U.S. Dist. LEXIS 15169 (S.D.N.Y. 1982).

95 F.R.D. 507 (Lieb v. American Motors Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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