Little v. KIA MOTORS AMERICA, INC.

39 A.3d 930, 425 N.J. Super. 82
CourtNew Jersey Superior Court Appellate Division
DecidedApril 2, 2012
DocketA-0407-11T3
StatusPublished
Cited by10 cases

This text of 39 A.3d 930 (Little v. KIA MOTORS AMERICA, INC.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Little v. KIA MOTORS AMERICA, INC., 39 A.3d 930, 425 N.J. Super. 82 (N.J. Ct. App. 2012).

Opinion

39 A.3d 930 (2012)
425 N.J. Super. 82

Regina LITTLE, on behalf of herself and all others similarly situated, Plaintiff-Respondent,
v.
KIA MOTORS AMERICA, INC., Defendant-Appellant.

Docket No. A-0407-11T3

Superior Court of New Jersey, Appellate Division.

Argued March 14, 2012.
Decided April 2, 2012.

*931 Roberto A. Rivera-Soto argued the cause for appellant (Ballard Spahr, LLP, attorneys; Mr. Rivera-Soto, John B. Kearney, Neal Walters, and Michael R. Carroll, Cherry Hill, on the briefs).

Lisa J. Rodriguez argued the cause for respondent (Trujillo Rodriguez & Richards, LLC, attorneys; Ms. Rodriguez and Nicole M. Acchione, Haddonfield, on the brief).

Before Judges CUFF, LIHOTZ, and WAUGH.

The opinion of the court was delivered by

WAUGH, J.A.D.

On leave granted, defendant Kia Motors America (Kia) appeals from the August 12, 2011 order of the Law Division, which adopted the report of a special master, vacated a portion of the jury's verdict on damages, ordered re-noticing of the class, modified the existing claims procedure, and reserved to the special master the option of considering an award of nominal damages. We reverse and remand.

I.

We discern the following facts and procedural history from the record on appeal.

In 2001, Regina Little sued Kia, alleging that the Kia Sephia she purchased was defective because its design caused repetitive, premature wear of the car's brakes and brake rotors. Little's claims included violation of the New Jersey Consumer *932 Fraud Act (CFA), N.J.S.A. 56:8-1 to -106, breach of implied warranties of merchantability and an express warranty that the Sephia was free of defects, and violation of the Magnuson-Moss Warranty Improvement Act, 15 U.S.C.A. § 2310(d)(1).

In 2003, Little sought certification of her complaint as a class action pursuant to Rule 4:32. The motion was granted and the members of the class, New Jersey residents who purchased Sephias between 1997 and 2000, were notified of the action.

In June 2008, the matter was tried before a jury. The jury found that Kia did not violate the CFA. However, it found that Kia had breached its express and implied warranties, and had also violated the Magnuson-Moss Warranty Act. At Little's request, the jury verdict form with respect to damages for breach of warranty instructed the jury that it could find (1) that "each class member" suffered damages for the diminution in value of the vehicle, (2) that "each class member" suffered damages for repair expenses, or (3) both. The jury found that the class members suffered no diminution in value between the Sephia as warranted and as delivered, but that each class member suffered $750 in repair expenses.

In November 2008, Kia moved for post-verdict relief, including a new trial on the issue of repair damages and class decertification for the purposes of determining the amount of repair damages, if any, suffered by each member. We note that Little did not move for a new trial with respect to the jury's verdict that the class members had not suffered a diminution in value arising from the breach of warranty. See R. 2:10-1 ("In both civil and criminal actions, the issue of whether a jury verdict was against the weight of the evidence shall not be cognizable on appeal unless a motion for a new trial on that ground was made in the trial court.").

The trial judge granted Kia's motion on the issue of repair damages. However, she based the decision on her conclusion that she should not have put the issue of repair damages before the jury on a class-wide basis because each owner's repair costs would be different. She decertified the class for the purpose of implementing her determination that each class member's damages had to be determined individually.

The judge explicitly limited the scope of the new trial:

A new trial will be granted as to the individual damages suffered by each class member. . . . To be clear, the only issue in this new trial will be the monetary amount of damages incurred, if any, and not whether the car suffered from a defective braking system, whether there was a breach of warranty, whether there was notice, or whether there was an opportunity to cure, all of which has been proven on a class-wide basis. The new trial will be handled on a claim-form basis.

She explained her reasons as follows:

Plaintiff had two theories of damages: (1) diminution of value due to a defective braking system, and (2) the costs to the individual owners for repair to the brake system. The jury rejected the first theory, but not the second. An examination of the evidence shows ample support for the jury's verdict in all respects but damages.[1]
. . . .
*933 The jury determined that Plaintiff had not proven a diminution in value of the Kia automobiles. Such a finding would result in damage throughout the class. The jury instead determined that class members suffered losses of $750 due to the defective braking system. This court is convinced this finding was based upon an erroneous submission by the court of the jury question and accompanying instructions. The damages suffered by each class member are dependent on numerous variables, such as brake life, frequency of repair, driving habits and length of time the car was owned. These damages cannot be ascertained on a class-wide basis, and the court's decision to submit same to the jury was error.

In April 2009, Little sought approval of a proposed notice and claim form to be sent to the class in implementation of the trial judge's decision that repair costs should be determined individually. In her proposal, Little argued that each claim submitted by a class member that met certain requirements should be presumptively valid. The application was heard by a new judge, due to the reassignment of the trial judge. The new judge rejected that aspect of the proposed form, citing the prior judge's order.

The second judge required Little to add additional questions to the form with respect to the condition of each claimant's Sephia and the details concerning any repairs made by each claimant, with available documentation to be attached. The judge ordered Kia to pay for "the dissemination of class notice and administration of the class members' claims." Although Kia provided approximately 8000 class members with the notice and claim form, between 1100 and 1200 class members submitted claim forms.

In October 2010, the parties appeared for a case management conference before the second judge. At the hearing, class counsel informed the judge that they could no longer represent individual claimants because such representation would conflict with the representation of the overall class. The judge ordered the parties to brief the issue of whether the class could be recertified for the purposes of resolving the representation issue.

In January 2011, the second judge determined that "the class should be recertified so that the individual claims for damages can be brought before the court." She subsequently recertified the individuals who responded to the claims notice as the new class. In an order filed January 25, the judge referred the claims to a special master, pursuant to Rule 4:41-1, in order to determine "which [claim] forms state valid claims to be paid." Little moved for leave to appeal the second judge's January 25, 2011 order. We denied her motion.

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