Phillips v. Volvo Penta of the Americas

CourtCalifornia Court of Appeal
DecidedJune 4, 2026
DocketA170727
StatusPublished

This text of Phillips v. Volvo Penta of the Americas (Phillips v. Volvo Penta of the Americas) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phillips v. Volvo Penta of the Americas, (Cal. Ct. App. 2026).

Opinion

Filed 5/6/26; Certified for Publication 6/3/26 (order attached)

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION THREE

BRIAN PHILLIPS, Plaintiff and Appellant, A170727 v. VOLVO PENTA OF THE (Alameda County AMERICAS, LLC, et al., Super. Ct. No. RG19038018) Defendants and Respondents.

Brian Phillips appeals a summary judgment in favor of Volvo Penta of the Americas, LLC (Volvo), which manufactured and expressly warranted the engine of a boat Phillips bought. For reasons unknown, the engine repeatedly overheated, disabling the boat, which Phillips twice sent to an authorized Volvo service-and-repair facility. After the boat again overheated, Phillips sent it to the facility a third time. This time, they found a cracked manifold had allowed water to enter the engine, but Volvo declined at first to authorize warranty repairs, and Phillips sued under the Song–Beverly Consumer Warranty Act (the Act) (Civ. Code, § 1790 et seq.; statutory references are to this code unless otherwise designated). Eleven days later, before the relevant Volvo employees learned of the lawsuit, Volvo reversed its decision and agreed to replace the engine at no cost.

1 Phillips continued his lawsuit. Noting that, if consumer goods do not conform to an express warranty, and a manufacturer fails after a reasonable number of attempts to repair them, the Act requires it to “replace the goods or reimburse the buyer in an amount equal to the purchase price paid by the buyer” (§ 1793.2, subd. (d)(1) (§ 1793.2(d)(1))), Phillips contended that Volvo’s replacement of the component it had warranted—the engine—did not satisfy that duty: The relevant “good,” he claims, is the boat as a whole, so Volvo must replace the boat or pay him its full price. Phillips offered no evidence that the engine’s overheating damaged any other part of the boat, and he cites no authority suggesting that the Act requires Volvo nonetheless to replace or “repurchase” the entire boat. We affirm the judgment in Volvo’s favor. OVERVIEW OF THE ACT We first briefly set forth the framework of duties the Act imposes on “manufacturer[s] of consumer goods sold in this state and for which the manufacturer has made an express warranty” (§ 1793.2, subd. (a)), as well as the corresponding remedies it affords buyers of such goods. For argument’s sake, we assume that the boat and the engine both satisfy the Act’s definition of “consumer goods” (§ 1791, subd. (a)), 1 and that Volvo comes within its definition of a “manufacturer” of such goods (id., subd. (j)) based on its manufacture and express warranty of the engine and related parts. A manufacturer of consumer goods sold in this state subject to express warranties must authorize sufficient service-and-repair facilities in this state to carry out those warranties. (§ 1793.2, subd. (b).) If a good’s nonconformity

1 Although it is a vehicle with a motor, Phillips’s boat undisputedly is

not subject to the distinct subset of provisions within the Act, commonly known as the Lemon Law, that apply to a “new motor vehicle”—a term defined to include only terrestrial conveyances. (§ 1793.2, subd. (d)(2)).

2 with such a warranty necessitates repair, the buyer shall deliver the goods to such a facility. (Id., subds. (b), (c).) If the facility “does not service or repair the goods to conform to the applicable express warranties after a reasonable number of attempts, the manufacturer shall either replace the goods or reimburse the buyer in an amount equal to the purchase price paid by the buyer” (less the value of the buyer’s use of the goods). (§ 1793.2(d)(1).) The Act creates a cause of action for buyers: If a manufacturer fails to comply with its duties under the Act, a “buyer of consumer goods who is damaged by [the] failure . . . may bring an action for the recovery of damages and other legal and equitable relief.” (§ 1794, subd. (a).) The measure of the buyer’s damages “shall include the rights of replacement or reimbursement” set forth in the above-quoted section 1793.2(d)(1). (§ 1794, subd. (b). 2) FACTUAL AND PROCEDURAL BACKGROUND In June 2018, Larson Marine, Inc. (Larson) sold Phillips a Bennington brand boat with a power package (engine and related parts) manufactured by Volvo. Larson is an authorized dealer of Bennington brand boats manufactured by Polaris Industries, Inc. (a successor to Bennington). Phillips’s sales contract with Larson identified the boat as comprising the Bennington boat, Volvo power package, and a pontoon. Phillips paid one price for the boat comprising those components; he did not pay a distinct price for the Volvo engine. Volvo—which sells leisure-use marine engines only to boat builders, not at retail to end customers—manufactured the “power package” at issue and sold it to Polaris, which then incorporated it in the boat. Volvo sold the power package with a Marine Gasoline Engine and Power Package Limited

2 Damages in an action under section 1794 can also include other

elements on which Phillips does not rely on appeal. (§ 1794, subd. (b).)

3 Warranty (the warranty). Polaris separately provided Phillips an express stem-to-stern warranty for the entire boat. 3 Volvo’s warranty states as follows: “[Volvo] warrants that new, marine gasoline power packages will be free from defects in material or workmanship for a period of two years or 480 hours, whichever occurs first. This two-year warranty is limited to complete power packages (engine, transom shield, sterndrive, IPS, Volvo Penta branded marine transmissions, jackshafts, and engine accessories) in leisure-use” (a term defined in a way undisputedly including Phillips’s power package). The warranty directs a warrantee to present the boat for service or repairs to a “Volvo Penta authorized dealer,” and it promises “[a]ny part of the Volvo Penta engine or power package that is covered by this warranty and that is found in the reasonable judgment of Volvo Penta to be defective in materials or workmanship will be repaired or replaced at Volvo Penta’s option.” Larson is an authorized repair facility for Bennington boats made by Polaris; Helmut’s Marine Service, Inc. (Helmut’s) is an authorized service-and-repair center for Volvo engines. Two weeks after Phillips got the boat, it began sporadically to overheat, which on the first three occasions required him to restart the boat, and on the last two left it unable to start, requiring him to have it towed. On all five occasions, spanning July 2018 to August 2019, he initially took the boat (or had it towed) to Larson for repairs.

3 At oral argument, Phillips’s counsel represented that Polaris’s

warranty had a “carveout” for, and did not cover, the power package. But in the separate statement of undisputed material facts supporting its summary judgment motion, Volvo quoted Phillips’s operative complaint as alleging that Polaris’s warranty “ ‘expressly provided “ste[m] to stern coverage,” and was not limited to specified components,’ ” and Phillips deemed that fact “Undisputed.” ~(AA 436)~

4 The first two times, both in July 2018, Larson alone worked on the boat, without lastingly resolving the problem. The third time, in February 2019, Phillips took the boat to Larson for several concerns that, according to his deposition, included an overheating incident. Larson created an invoice that it left “open” until July 2019, so that the invoice came to reflect work on multiple occasions. In June 2019, as shown on this invoice, Larson sent the boat to Helmut’s for work that included fixing its “tow mode” (a feature analogous to cruise control that ensures a steady speed for activities like waterskiing). Helmut’s created an invoice in June 2019 that does not reflect any attempt to address the overheating problem, and it is unclear whether anyone told Helmut’s at the time about the overheating problem.

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Bluebook (online)
Phillips v. Volvo Penta of the Americas, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phillips-v-volvo-penta-of-the-americas-calctapp-2026.