Nissan Motor Co., Ltd. v. Fry

27 S.W.3d 573, 2000 Tex. App. LEXIS 5565, 2000 WL 1179535
CourtCourt of Appeals of Texas
DecidedAugust 17, 2000
Docket13-99-199-CV
StatusPublished
Cited by53 cases

This text of 27 S.W.3d 573 (Nissan Motor Co., Ltd. v. Fry) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nissan Motor Co., Ltd. v. Fry, 27 S.W.3d 573, 2000 Tex. App. LEXIS 5565, 2000 WL 1179535 (Tex. Ct. App. 2000).

Opinion

OPINION ON MOTION FOR REHEARING

Opinion by Justice HINOJOSA.

We issued our original opinion in this case on May 25, 2000. Appellant, Nissan Motor Company, Ltd. d/b/a Nissan Motor Corporation in USA, subsequently filed a motion for rehearing, urging us to reconsider our opinion in light of recent cases from the Texas Supreme Court. We grant Nissan’s motion for rehearing, withdraw our opinion of May 25, 2000, and substitute the following as the opinion of this Court.

This is an interlocutory appeal from an order granting class certification. 1 Nissan contends the trial court erred in certifying the class. We remand this case to the trial court for further proceedings consistent with this opinion.

1. Baokground

Appellees sued Nissan for economic damages 2 arising out of alleged defects in certain two-point motorized safety belt systems installed in Nissan vehicles, and requested class certification. Appellees allege the seat belt system is unfit for the ordinary purpose for which it is intended, is defective and inadequate, and violates the implied warranty of merchantability. Specifically, they allege the system is unreasonably dangerous and defective because it lacks adequate warnings that the separate manual lap belt must be used to avoid injury in an accident. Appellees claim that unless the lap belt is properly engaged, the system (1) will not perform its intended function of protecting passengers from injury in a collision and (2) can itself cause serious injury to the passenger it is supposed to protect. Appellees further claim that the snugness of the automatic shoulder portion of the seat belt system creates an express warranty that the user is safely restrained without manually engaging the lap belt portion, leading to a sense of false security, and that the accompanying warnings and instructions are inadequate to overcome this problem.

Appellees pleaded various causes of action against Nissan, including:

(1) breach of the implied warranty of merchantability; and
(2) violations of the Texas Deceptive Trade Practices — Consumer Protection Act (“DTPA”), and Tex. Bus. & Comm.Code Ann. §§ 17.01, 17.46, 17.50 (Vernon 1987):
(a) breach of express warranties pursuant to section 17.50(a) of the DTPA; 3
*580 (b) breach of implied warranties pursuant to section 17.50(a) of the DTPA;
(c) by using false, misleading and deceptive acts or practices as defined in Sections 17.50 and 17.46 of the DTPA in the following ways:
(i) in causing confusion of or misunderstanding as to the source, sponsorship, approval or certification of goods or services in violation of section 17.46(b)(2) of the DTPA;
(ii) in representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or qualities which they do not have, in violation of section 17.46(b)(5) of the DTPA;
(iii) in representing that goods or services are of a particular standard, quality or grade, or that goods are of a particular style or model, if they are of another, in violation of section 17.46(b)(12) of the DTPA; and
(iv) in representing that a guarantee or warranty can involve rights, or remedies, which it does not have or involve, in violation of section 17.46(b)(19) of the DTPA.

Appellees seek monetary compensation for all actual, special, and consequential damages and pecuniary losses including, but not limited to, the cost to repair each vehicle and/or replace the defective part, the cost of alternative transportation during the time necessary to repair each vehicle, and the value of the loss of use of each vehicle during the time necessary to repair each vehicle.

The trial court found that appellees’ claims are based on an alleged common course of conduct of manufacturing and selling a defective product, which was allegedly marketed through a common course of similar misrepresentation, and ordered certification of a class consisting of “all residents in the State of Texas who own a Nissan vehicle equipped with a two-point passive restraint system equipped with a separate manual lap belt.” The evidence showed this system was installed in various Nissan vehicles manufactured from 1987 through 1995, and that there are some 153,886 of these vehicles currently registered in Texas.

2. JURISDICTION

A party may complain of all matters pertaining to a class action certification by interlocutory appeal. Tex. Civ. Prac. & Rem.Code Ann. § 51.014(a)(3) (Vernon Supp.2000); Central Power & Light Co. v. City of San Juan, 962 S.W.2d 602, 607 (Tex.App. — Corpus Christi 1998, pet. dism’d w.o.j.).

3. Standard of Review

It is well established that a trial court has broad discretion in determining whether to grant or deny class certification. Entex v. City of Pearland, 990 S.W.2d 904, 909 (Tex.App. — Houston [14th Dist.] 1999, no pet.); Union Pac. Resources Co. v. Chilek, 966 S.W.2d 117, 120 (Tex.App. — Austin 1998, pet. dism’d w.o.j.). A class certification order will be reversed only if the record shows a clear abuse of discretion. General Motors v. Bloyed, 916 S.W.2d 949, 955 (Tex.1996); FirstCollect, Inc. v. Armstrong, 976 S.W.2d 294, 298 (Tex.App. — Corpus Christi 1998, pet. dism’d w.o.j.); Chilek, 966 S.W.2d at 120; Central Power & Light, 962 S.W.2d at 607. A trial court abuses its discretion if it acts arbitrarily, unreasonably or without reference to any guiding principles. Downer v. *581 Aquamarine Operators, Inc., 701 S.W.2d 238, 242 (Tex.1985); Entex, 990 S.W.2d at 909; FirstCollect, 976 S.W.2d at 298.

A trial court also abuses its discretion when it fails to properly apply the law to undisputed facts, or when its ruling is based on factual assertions not supported by material in the record. Texas Commerce Bank Nat’l Ass’n v. Wood, 994 S.W.2d 796, 801 (Tex.App. — Corpus Christi 1999, pet. dism’d); Hi-Lo Auto Supply, L.P. v. Beresky, 986 S.W.2d 382, 386 (Tex.App. — Beaumont 1999, writ mand. denied). On appeal, the reviewing court must view the evidence in the light most favorable to the trial court’s ruling and indulge every presumption in favor of that ruling. Wood, 994 S.W.2d at 801; Entex, 990 S.W.2d at 908; FirstCollect, 976 S.W.2d at 299.

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Bluebook (online)
27 S.W.3d 573, 2000 Tex. App. LEXIS 5565, 2000 WL 1179535, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nissan-motor-co-ltd-v-fry-texapp-2000.