Martinez v. Ford Motor Company

District Court, S.D. California·Decided October 24, 2022·No. 3:22-cv-01082·Unknown

Opinion

JORGE MARTINEZ, Case No. 22-cv-1082-MMA (BGS)

Plaintiff, ORDER GRANTING DEFENDANT v. FORD MOTOR COMPANY’S MOTION TO DISMISS AND

REEVES FORD LINCOLN, ETHOS [Doc. Nos. 5] GROUP INC. and DOES 1 through 10,

inclusive, GRANTING DEFENDANT ETHOS Defendant. GROUP INC.’S MOTION TO DISMISS

[Doc. No. 6] On June 24, 2022, Jorge Martinez (“Plaintiff”) commenced the instant action against Ethos Group Inc. (“Defendant Ethos”), Ford Motor Company (“Defendant Ford”), Norm Reeves Ford Lincoln, and Does 1–10 in the San Diego County Superior Court. See Doc. No. 1-2 (“Compl.”). On July 25, 2022, Defendant Ford removed the action to this Court based on federal question jurisdiction. See Doc. No. 1. Defendant Ethos consented to removal. See Doc. No. 1 at 2. Both Defendant Ethos and Defendant Ford now move to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6). See Doc. Nos. 5, 6. Plaintiff filed oppositions, to which Defendants Ford and Ethos replied. See Doc. Nos. 9, 10, 12, 13. The Court found the matters suitable for determination on the papers and without oral argument pursuant to Civil Local Rule 7.1.d.1. See Doc. No. 14. For the reasons set forth below, the Court GRANTS Defendant Ethos’s motion to dismiss and GRANTS Defendant Ford’s motion to dismiss. I. BACKGROUND1 Plaintiff purchased a “new 2014 Ford Edge” (the “Vehicle”). Compl. ¶ 6. Elsewhere Plaintiff states that the Vehicle was “Certified Pre-Owned.” Id. ¶ 7. Plaintiff contends that Defendant Ford is the manufacturer “and or” distributor of the Vehicle. Id. ¶ 6. Plaintiff also purchased a service contract from Defendant Ethos “that covered some repair costs of the Vehicle.” Id. ¶ 64. The Vehicle subsequently developed issues. See id. ¶ 9. Plaintiff alleges the following mechanical failures: During the warranty period, the Vehicle contained or developed nonconformity(s) to warranty, including but not limited to defect(s) which have manifested as check engine lights, cooling fan defect, power steering defect, coolant leaks, oil leaks, and Evaporative Emission Control System leaks. Said defects substantially impair the use, value, or safety of the Vehicle.

Id. ¶ 9. Plaintiff maintains that Defendant Ethos failed to provide the “services” and parts necessary for normal operation. Id. ¶ 66. In sum, Plaintiff asserts Defendant Ethos “fail[ed] to comply with their obligations” under the service contract. Id. ¶ 67. As to Defendant Ford, Plaintiff asserts that it failed to repair or replace the vehicle as required by the warranties, and failed to reimburse him for expenses. See id. ¶¶ 6–44. 1 Because this matter is before the Court on a motion to dismiss, the Court must accept as true the allegations set forth in the Complaint. See Hosp. Bldg. Co. v. Trs. of Rex Hosp., 425 U.S. 738, 740 A Rule 12(b)(6) motion to dismiss tests the sufficiency of the complaint. Navarro v. Block, 250 F.3d 729, 732 (9th Cir. 2001). A pleading must contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). However, plaintiffs must also plead “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 Fed. R. Civ. P. 12(b)(6). The plausibility standard demands more than a “formulaic recitation of the elements of a cause of action,” or “‘naked assertions’ devoid of ‘further factual enhancement.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Twombly, 550 U.S. at 555). Instead, the complaint “must contain allegations of underlying facts sufficient to give fair notice and to enable the opposing party to defend itself effectively.” Starr v. Baca, 652 F.3d 1202, 1216 (9th Cir. 2011). In reviewing a motion to dismiss under Rule 12(b)(6), courts must assume the truth of all factual allegations and must construe them in the light most favorable to the nonmoving party. Cahill v. Liberty Mut. Ins. Co., 80 F.3d 336, 337–38 (9th Cir. 1996) (citing Nat’l Wildlife Fed’n v. Espy, 45 F.3d 1337, 1340 (9th Cir. 1995)). The court need not take legal conclusions as true merely because they are cast in the form of factual allegations. Roberts v. Corrothers, 812 F.2d 1173, 1177 (9th Cir. 1987) (quoting W. Min. Council v. Watt, 643 F.2d 618, 624 (9th Cir. 1981)). Similarly, “conclusory allegations of law and unwarranted inferences are not sufficient to defeat a motion to dismiss.” Pareto v. FDIC, 139 F.3d 696, 699 (9th Cir. 1998). In determining the propriety of a Rule 12(b)(6) dismissal, courts generally may not look beyond the complaint for additional facts. United States v. Ritchie, 342 F.3d 903, 907–08 (9th Cir. 2003). “A court may, however, consider certain materials—documents attached to the complaint, documents incorporated by reference in the complaint, or matters of judicial notice—without converting the motion to dismiss into a motion for summary judgment.” Id. at 908; see also Lee v. City of Los Angeles, 250 F.3d 668, 688 (9th Cir. 2001). “However, [courts] are not required to accept as true conclusory allegations which are contradicted by documents referred to in the complaint.” Steckman v. Hart Brewing, Inc., 143 F.3d 1293, 1295–96 (9th Cir. 1998) (citing In re Stac Elecs. Sec. Litig., 89 F.3d 1399, 1403 (9th Cir. 1996)). Additionally, allegations of fraud or mistake require the pleading party to “state with particularity the circumstances constituting fraud or mistake.” Fed. R. Civ. P. 9(b). The context surrounding the fraud must “be ‘specific enough to give defendants notice of the particular misconduct . . . so that they can defend against the charge and not just deny that they have done anything wrong.’” Kearns v. Ford Motor Co., 567 F.3d 1120, 1124 (9th Cir. 2009) (quoting Bly-Magee v. California, 236 F.3d 1014, 1019 (9th Cir. 2001)). “‘Averments of fraud must be accompanied by “the who, what, when, where, and how” of the misconduct charged.’ A party alleging fraud must ‘set forth more than the neutral facts necessary to identify the transaction.’” Kearns, 567 F.3d at 1124 (citation omitted) (first quoting Vess v. Ciba-Geigy Corp. USA, 317 F.3d 1097, 1106 (9th Cir. 2003); and then quoting In re GlenFed, Inc. Sec. Litig., 42 F.3d 1541, 1548 (9th Cir. 1994), superseded by statute on other grounds). Where dismissal is appropriate, a court should grant leave to amend unless the plaintiff could not possibly cure the defects of the pleading. Knappenberger v. City of Phoenix, 566 F.3d 936, 942 (9th Cir. 2009) (quoting Lopez v. Smith, 203 F.3d 1122, 1127 (9th Cir. 2000)). Defendants move to dismiss all caus

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