Morano v. BMW of North America, LLC

928 F. Supp. 2d 826, 2013 WL 785071, 2013 U.S. Dist. LEXIS 28099
CourtDistrict Court, D. New Jersey
DecidedMarch 1, 2013
DocketCiv. No. 2:12-CV-00606 (KM)(MAH)
StatusPublished
Cited by8 cases

This text of 928 F. Supp. 2d 826 (Morano v. BMW of North America, LLC) 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
Morano v. BMW of North America, LLC, 928 F. Supp. 2d 826, 2013 WL 785071, 2013 U.S. Dist. LEXIS 28099 (D.N.J. 2013).

Opinion

MEMORANDUM OPINION

KEVIN McNULTY, District Judge.

The plaintiff, John J. Morano (“Morano”), brings this putative class action against defendant, BMW of North America, LLC (“BMWNA”), for violations of the Florida Deceptive and Unfair Trade Practices Act (“FDUTPA”), breach of contract, breach of warranty, and punitive damages. The dispute arose when the battery in Morano’s new BMW automobile would not hold a charge and his BMW dealer refused to replace it. Plaintiff alleges that BMWNA failed to clearly disclose the basis for excluding the battery problem from its Ultimate Service Program (the “Maintenance Program”) and New Passenger Vehicle Limited Warranty (the “Warranty”). Plaintiff seeks to represent a class of “all persons or entities residing in the state of Florida who purchased or leased a BMW automobile within the four (4) year [829]*829period preceding the date on which the Complaint is filed.”

BMWNA has moved to dismiss Morano’s claims, arguing that he failed to plead his FDUTPA claim with the particularity required by Fed. R. Civ. P. 9(b); that his breach of contract and breach of warranty claims fail for lack of privity; that the battery problem resulted from the manner in which Morano operated the vehicle; and that the punitive damages claim is unsupported by factual allegations. BMWNA also argues that the class action allegations are unsustainable because individual issues of causation predominate over any common issues of law or fact.

Pleading deficiencies aside, BMWNA’s central legal argument is that it is not in privity with customers and therefore cannot be liable under applicable Florida law for breach of warranty or breach of contract. This comes as a surprise to the Court, as it doubtless would to consumers. BMWNA’s warranty states that it runs to “the first retail purchaser.” But BMWNA makes no direct sales or leases to customers; it sells and leases cars only through its dealers. If the Warranty and Maintenance Program apply only to BMWNA’s direct customers, then they apply to nobody. If this privity argument were correct, then BMWNA’s aggressively marketed Warranty and Maintenance Program would be unenforceable, not to say illusory. I am fairly certain, however, that when Florida BMW owners bring their cars to the dealer for warranty servicing, they are not told to go away because they lack privity. At any rate, I do not agree that the Supreme Court of Florida would interpret that State’s law to require privity in these circumstances. A more germane issue is whether the Warranty and Maintenance Program cover, or should have covered, the claimed defect. That, of course, is a separate issue, and a genuine one.

I have reviewed the parties’ submissions, and I heard oral argument on December 16, 2012. For the reasons set forth below, the Court is persuaded that the Complaint adequately sets forth claims for relief on Mr. Morano’s part, and that a decision on class certification would be premature. Defendant’s motion to dismiss will therefore be DENIED.

I. BACKGROUND

On or about September 17, 2009, John Morano, a citizen of Florida, leased a BMW 650i CV from the Paul Miller BMW dealership, which is located in Wayne, New Jersey. (Compl. ¶¶ 1, 18-19.) Plaintiff leased his vehicle from a New Jersey dealership because his local BMW dealership, BMW of Fort Myers, referred him there. {Id. ¶ 20.) Defendant BMWNA is a Delaware Limited Liability Company with its principal place of business in Woodcliff Lake, New Jersey. {Id. ¶ 2.) BMWNA is the North American importer, distributor, marketer, and warrantor of BMW brand vehicles. (Memorandum of Law in Support of Motion to Dismiss (“Def. Mem.”), ECF No. 10-1, at 4 n. 3.) BMWNA does not sell or lease vehicles directly to consumers; it does so solely through dealerships, which also serve as repair centers. {Id.)

This Court has diversity jurisdiction pursuant to 28 U.S.C. § 1332, the diversity statute, as amended and supplemented by the Class Action Fairness Act of 2005. The claims of the individual members of the proposed class exceed the sum or value of $5,000,000, exclusive of interests and costs, and at least one member of the proposed class {%.&., Mr. Morano himself) is a citizen of a different state (Florida) from BMWNA (New Jersey and Delaware). See 28 U.S.C. § 1332(d)(2) (“minimal diversity” requirement of the Class Action Fairness Act); 28 U.S.C. § 1332(d)(10) (for [830]*830class action purposes, “an unincorporated association shall be deemed to be a citizen of the State where it has its principal place of business and the State under whose laws it is organized”).

A. BMWNA’s “Ultimate Service” Maintenance Program

New BMW vehicles come with a 4 year/ 50,000 mile Ultimate Service “no maintenance” program. The model year 2009 BMW 6 Series Service and Warranty Information manual describes the Maintenance Program, in part, as follows:

The BMW Maintenance Program is a benefit designed to help reduce the cost of ownership. This program has been devised with the following objectives: to maximize vehicle safety, reliability, and resale value by minimizing breakdowns resulting from wear, and minimizing cost and inconvenience by computing maintenance intervals based upon the specific manner in which each individual vehicle is driven. 2009 1, 3, 5, and 6 Series vehicles purchased1 from any authorized BMW center in the United States or Puerto Rico are covered by The BMW Maintenance Program for 48 months or 50,000 miles.

(Dalton Deck, ECF No. 10-5, Ex. A., pp. 1-2.) Exclusions from coverage under the Maintenance Program include the following: damage which results from negligence, improper operation of the vehicle, wear and tear or deterioration due to driving habits or conditions, improper repair, environmental influences, flood, accident, or fire damage. {Id. at p. 2.)

Typically, when a court relies on matters outside of the pleadings, it must convert the motion to dismiss into a motion for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure. That procedure is designed to provide all parties with a reasonable opportunity to present and respond to all materials pertinent to the motion. See Fed. R. Civ. P. 12(d); Pension Ben. Guar. Corp. v. White Consol. Industries, Inc., 998 F.2d 1192, 1196 (3d Cir.1993). A court may, however, consider extraneous documents that are referred to in the complaint or documents on which the claims in the complaint were based without converting the motion to dismiss into one for summary judgment. In re Burlington Coat Factory Sec. Litig., 114 F.3d 1410, 1426 (3d Cir.1997);

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
928 F. Supp. 2d 826, 2013 WL 785071, 2013 U.S. Dist. LEXIS 28099, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morano-v-bmw-of-north-america-llc-njd-2013.