Michelson v. Volkswagen Aktiengesellschaft

99 N.E.3d 475, 2018 Ohio 1303
CourtCourt of Appeals of Ohio, Eighth District, Cuyahoga County
DecidedApril 5, 2018
DocketNo. 105960
StatusPublished
Cited by12 cases

This text of 99 N.E.3d 475 (Michelson v. Volkswagen Aktiengesellschaft) is published on Counsel Stack Legal Research, covering Court of Appeals of Ohio, Eighth District, Cuyahoga County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michelson v. Volkswagen Aktiengesellschaft, 99 N.E.3d 475, 2018 Ohio 1303 (Ohio Super. Ct. 2018).

Opinion

PATRICIA ANN BLACKMON, J.:

{¶ 1} Deborah J. Michelson ("Michelson") appeals from the trial court's decision granting Volkswagen Aktiengesellschaft, et al.'s ("Volkswagen") motion to dismiss for failure to state a claim upon which relief can be granted and assigns five errors for our review:

I. The trial court committed reversible error by dismissing Plaintiff-Appellant's well pled Complaint that alleged facts sufficient to satisfy Ohio's notice pleading standard on all counts.
II. The trial court committed reversible error by dismissing Plaintiff-Appellant's Complaint based on factual determinations whether Defendant-Appellees were "suppliers" that engaged in "consumer transactions" under Ohio's Consumer Sales Practices Act, Ohio Rev. Code 1345.01, et seq.
*477III. The trial court committed reversible error by wrongly determining that Ohio's Deceptive Trade Practices Act, Ohio Rev. Code 4165.01, et seq. applies only to commercial entities.
IV. The trial court committed reversible error by wrongly determining that purely economic damages are not recoverable under Ohio's cause of action for breach of implied warranty in tort and/or negligent design not sounding in product liability.
V. The trial court committed reversible error by failing to grant Plaintiff-Appellant leave to amend her Complaint pursuant to Ohio Civil Procedure Rule 15(A), to cure any perceived pleading deficiencies.

{¶ 2} Having reviewed the record and pertinent law, we affirm the trial court's judgment. The apposite facts follow.

{¶ 3} In May 2014, Michelson bought a 2009 Volkswagen CC Sport ("the Vehicle") in Cuyahoga County from an unnamed seller. In December 2016, when the Vehicle had approximately 90,000 miles on it, the timing chain system failed, requiring replacement of the engine at a cost of more than $7,000. On March 2, 2017, Michelson filed a complaint against Volkswagen alleging: 1) unfair and/or deceptive acts in violation of R.C. 1345.02(A) ; 2) deceptive trade practices in violation of R.C. 4165.02 ; and 3) design or manufacturing defects.1

{¶ 4} The gist of Michelson's lawsuit, as evidenced by her complaint, her brief in opposition to Volkswagen's motion to dismiss, and her appellate briefs, is that "the Volkswagen Defendants manufactured and distributed a vehicle that they knew, or reasonably should have known, has serious manufacturing and design defects, including a defective timing chain system in the engine that makes the car highly unsafe * * *."

{¶ 5} On May 31, 2017, the court granted Volkswagen's motion to dismiss under Civ.R. 12(B)(6) for failure to state a claim upon which relief can be granted. It is from this order that Michelson appeals. We address Michelson's assigned errors together when necessary.

Standard of Review- Civ.R. 12(B)(6) Motion to Dismiss

Our standard of review on a Civ.R. 12(B)(6) motion to dismiss is de novo. A motion to dismiss for failure to state a claim upon which relief can be granted is procedural and tests the sufficiency of the complaint. Under a de novo analysis, we must accept all factual allegations of the complaint as true and all reasonable inferences must be drawn in favor of the nonmoving party.

(Citations omitted.) NorthPoint Properties v. Petticord , 179 Ohio App.3d 342, 2008-Ohio-5996, 901 N.E.2d 869, ¶ 11 (8th Dist.). For a trial court to grant a motion to dismiss for failure to state a claim upon which relief can be granted, it must appear "beyond doubt from the complaint that the plaintiff can prove no set of facts entitling her to relief." Grey v. Walgreen Co. , 197 Ohio App.3d 418, 2011-Ohio-6167, 967 N.E.2d 1249, ¶ 3 (8th Dist.).

{¶ 6} Particular to this case, however, we note that under Civ.R. 12(B)(6), the *478court does not have to accept Michelson's legal conclusions as true. Ashcroft v. Iqbal , 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) ("the tenet that a court must accept as true all of the allegations contained in a complaint is inapplicable to legal conclusions. Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.").

Ohio Consumer Sales Practices Act

{¶ 7} The Ohio Consumer Sales Practices Act ("CSPA") provides a remedy to consumers who are subject to unfair or deceptive practices by suppliers. Pursuant to R.C. 1345.02(A), "[n]o supplier shall commit an unfair or deceptive act or practice in connection with a consumer transaction."

{¶ 8} In the case at hand, Michelson alleges that: 1) the supplier is Volkswagen; 2) the unfair or deceptive act is Volkswagen's "wrongfully and intentionally" concealing the "Timing Chain System Defect" from consumers "for many years," despite Volkwagen's actual knowledge of the defect; and 3) the consumer transaction was her purchase of the Vehicle.

{¶ 9} Volkswagen, on the other hand, argues that it is not a "supplier" and it did not engage in a "consumer transaction"; therefore, it is not liable to Michelson under the CSPA.

{¶ 10} "Supplier" is defined in the CSPA as "a seller, lessor, assignor, franchisor, or other person engaged in the business of effecting or soliciting consumer transactions, whether or not the person deals directly with the consumer." R.C. 1345.01(C). "Consumer transaction" is defined in pertinent part as "a sale * * * or other transfer of an item of goods * * * to an individual for purposes that are primarily personal, family, or household, or solicitation to supply any of these things." R.C. 1345.01(A). Although there is no requirement of privity between the supplier and the consumer for the CSPA to be applicable, "the defendant must have some connection to the consumer transaction in question in order to be liable as a supplier for deceptive practices which violate the Ohio Consumer Sales Practices Act." Garner v. Borcherding Buick, Inc. , 84 Ohio App.3d 61

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Cite This Page — Counsel Stack

Bluebook (online)
99 N.E.3d 475, 2018 Ohio 1303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michelson-v-volkswagen-aktiengesellschaft-ohctapp8cuyahog-2018.