Phonacelle Handy v. General Motors Corporation, Maxine Herzog v. General Motors Corporation, a Corporation of the State of Delaware

518 F.2d 786, 20 Fed. R. Serv. 2d 988
Court of Appeals for the Ninth Circuit·Decided May 7, 1975·No. 73-1462, 73-2246·Published·Cited by 11 cases

Opinion

PER CURIAM:

The district court dismissed two actions seeking damages and injunctive relief claimed under the National Traffic and Motor Vehicle Safety Act of 1966, 15 U.S.C. § 1381 et seq. (the Act), and the plaintiffs appeal.

Plaintiffs are purchasers of Chevrolet automobiles who claim their cars lost value because of defective assembly. They demanded money damages for the “excess depreciation” after the defect was discovered. They also prayed for injunctions compelling General Motors (GM) to make repairs and the National Highway Traffic Safety Administration (NHTSA) to cause General Motors to

*787 furnish additional 1 notification of defect to vehicle owners. See 15 U.S-C. § 1402.

The district court correctly ruled that the plaintiffs may not, by combining their claims with those of similarly situated purchasers, aggregate their damage demands to reach the $10,-000 jurisdictional amount required by 28 U.S.C. § 1332. See Zahn v. International Paper Co., 414 U.S. 291, 94 S.Ct. 505, 38 L.Ed.2d 511 (1973); Snyder v. Harris, 394 U.S. 332, 335, 338, 89 S.Ct. 1053, 22 L.Ed.2d 319 (1969).

The appellants argue alternatively that jurisdiction should be based upon 28 U.S.C. § 1337 and the terms of the Act *788 itself. We disagree. The district court correctly ruled that Congress did not intend to create private rights of action in favor of individual purchasers of motor vehicles when it adopted the comprehensive system of regulation to be administered by the NHTSA. See Carlson v. Coco-Cola Co., 483 F.2d 279, 280-81 (9th Cir. 1973); Consolidated Freightways, Inc. v. United Truck Lines, Inc., 216 F.2d 543, 547 (9th Cir. 1954), cert. denied, 349 U.S. 905, 75 S.Ct. 582, 99 L.Ed. 1242 (1955). The cases against GM were properly dismissed for failure to state claims upon which relief could be granted.

Appellants assert that GM’s “notice of vehicle defect” mailed to owners of defective vehicles was insufficient. Our examination of that notice convinces us that the district court was correct in its finding that the notice satisfied 15 U.S.C. § 1402(c). Thus, the NHTSA’s duty under the Act terminated when GM mailed the defect notice. The Federal defendants were properly dismissed from the action.

Affirmed.

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Phonacelle Handy v. General Motors Corporation, Maxine Herzog v. General Motors Corporation, a Corporation of the State of Delaware, 518 F.2d 786, 20 Fed. R. Serv. 2d 988 (9th Cir. 1975).

518 F.2d 786 (Phonacelle Handy v. General Motors Corporation, Maxine Herzog v. General Motors Corporation, a Corporation of the State of Delaware) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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