PADILLA v. PORSCHE CARS NORTH AMERICAN, INC.

CourtDistrict Court, S.D. Florida
DecidedMarch 26, 2020
Docket1:18-cv-24988
StatusUnknown

This text of PADILLA v. PORSCHE CARS NORTH AMERICAN, INC. (PADILLA v. PORSCHE CARS NORTH AMERICAN, INC.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PADILLA v. PORSCHE CARS NORTH AMERICAN, INC., (S.D. Fla. 2020).

Opinion

UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF FLORIDA Miami Division Case Number: 18-24988-CIV-MORENO SANTIAGO PADILLA and MURRAY L. SHAMES, individually and on behalf of all others similarly situated, Plaintiffs, vs. PORSCHE CARS NORTH AMERICA, INC., a Delaware Corporation, Defendant. eae ORDER GRANTING IN PART DEFENDANT PORSCHE’S MOTION TO DISMISS Earlier in this case, the Court dismissed the initial complaint on statute of limitations grounds because both Plaintiffs purchased a used Porsche more than 4 years before filing their complaint. The Court also found that the Plaintiffs’ fraudulent concealment allegations were not sufficient to toll the statute of limitations on their Florida Deceptive and Unfair Trade Practices Act claim. The Plaintiffs were granted leave to amend their fraudulent concealment allegations and later filed the First Amended Class Action Complaint. Porsche countered with a Motion to Dismiss With Prejudice on grounds that the amended fraudulent concealment allegations are still not sufficient to toll the statute of limitations. For the reasons below, the Motion to Dismiss is GRANTED IN PART. I. BACKGROUND Plaintiffs Santiago Padilla and Murray Shames allege, individually and on behalf of a putative class, that Porsche sold its high-end performance vehicles as safe, despite knowing for more than a decade about substantial safety risks caused by using a defective epoxy adhesive to

join coolant pipes to the thermostat housing. According to the Plaintiffs, the “Cooling System Defect” occurs when epoxy adhesive degrades, loosens, and eventually fails due to the contraction and expansion of coolant pipes caused by repeated heating and cooling over time. The Plaintiffs allege that when the epoxy adhesive fails, the cooling pipes separate from the thermostat housing, causing a significant coolant leak that in turn can cause an engine to overheat, fail without warning, or worse, cause a wreck because leaked coolant creates slippery road conditions. In 2013, Padilla purchased a used Porsche Panamera from The Collection, a Porsche authorized dealership and repair center in Miami. Padilla alleges that in 2014, his used Panamera suddenly overheated while driving after the epoxy adhesive failed and the coolant pipes separated from the thermostat housing. He further alleges that The Collection did not tell him at the time of purchase or repair that the cooling system in his used Panamera had the alleged Defect, even though The Collection and Porsche “knew the truth” about the Cooling System Defect. In July 2014, Shames bought his used Cayenne S from a Carmax in Tampa. Shames alleges that in April 2016, the coolant pipe on his used Cayenne S separated from the thermostat housing due to the epoxy adhesive failing. The same problem reoccurred on Shame’s used Cayenne S in September 2017. Shames wrote to Porsche, in May 2018, after he learned through internet research that the problem appeared to be common in Porsche vehicles. Shames told Porsche that there was a repetitive problem with the cooling system and that it appeared the common issue was caused by a hose glued to the engine. Shames alleges that Reeves Porsche, the Porsche authorized dealership and repair center that repaired Shames’s used Cayenne S, did not tell him that his used Cayenne S suffered from the Defect, even though Reeves Porsche and Porsche “knew the truth” about the Cooling System Defect. After Porsche refused to reimburse Shames (because the repairs occurred outside the standard warranty period) Shames traded-in his used Cayenne S at a loss. The First Amended -2-

Class Action Complaint (the “Complaint”) does not allege whether Padilla still owns his vehicle. Despite purchasing their used Porsche vehicles in 2013 and July 2014, the Plaintiffs did not file their initial class action complaint until November 29, 2018. II. LEGAL STANDARD “A pleading that states a claim for relief 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). To survive dismissal, the Complaint “must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Jd. (citing Twombly, 550 U.S. at 556). “While legal conclusions can provide the framework of a complaint, they must be supported by factual allegations.” Jgbal, 556 U.S. at 679. And those “[flactual allegations must be enough to raise a right to relief above the speculative level.” Twombly, 550 U.S. at 555. Finally, the Court must view the allegations in the light most favorable to the Plaintiffs and accept the Plaintiffs’ well-pleaded facts as true. See St. Joseph’s Hosp., Inc. v. Hosp. Corp. of Am., 795 F.2d 948, 954 (11th Cir. 1986). Ill. DISCUSSION The Complaint advances two claims: in Count I, violation of the Florida Deceptive and Unfair Trade Practices Act (““FDUTPA”); and in Count II, a claim for declaratory relief. A. COUNT 1 - FDUTPA Previously, the Court determined that it was apparent from the face of the initial complaint that the 4-year statute of limitations period expired for each Plaintiff's FDUTPA claim because the initial complaint was filed more than 4 years after each Plaintiff purchased their used Porsche vehicle. See Padilla v. Porsche Cars N. Am., Inc., 391 F. Supp. 3d 1108, 1112-13 (S.D. Fla. -3-

2019). The Court also determined that the fraudulent concealment allegations in the initial complaint failed to invoke fraudulent concealment tolling of the statute of limitations—let alone with sufficiently particularity under Federal Rule of Civil Procedure Rule 9(b). /d. at 1113-15. Now, the Court will determine whether the Plaintiffs’ amended fraudulent concealment allegations can salvage their time-barred claims. Porsche argues the FDUTPA claim should be dismissed with prejudice because the fraudulent concealment allegations are still insufficient to toll the statute of limitations. The Plaintiffs insist otherwise. Where a claim is time-barred by the statute of limitations, it is the Plaintiffs’ burden to plead allegations sufficient to toll the statute of limitations. See Heuer v. Nissan N. Am., Inc., Case No. 17-60018, 2017 WL 3475063, at *4 (S.D. Fla. Aug. 11, 2017) (citing Patel v. Diplomat, 605 F. App’x 965, 966 (1 1th Cir. 2015) (applying La Grasta and finding that, where dates included in complaint made time-bar apparent, plaintiff was required to allege facts supporting tolling of statute of limitations)). To invoke fraudulent concealment tolling, the Plaintiffs must plead factual matter showing that Porsche “engage[d] in the willful concealment of the cause of action using fraudulent means to achieve that concealment.” Raie v. Cheminova, Inc., 336 F.3d 1278, 1282 n.1 (11th Cir. 2003) (citing Berisford v. Jack Eckerd Corp., 667 So. 2d 809, 811-12 (Fla. 4th DCA 1995)); see also Speier-Roche v. Volkswagen Grp. of Am., Inc., Case No. 14-20107, 2014 WL 1745050, at *7 (S.D. Fla. Apr.

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Bluebook (online)
PADILLA v. PORSCHE CARS NORTH AMERICAN, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/padilla-v-porsche-cars-north-american-inc-flsd-2020.