Quackenbush v. American Honda Motor Co., Inc.

CourtCourt of Appeals for the Ninth Circuit
DecidedApril 4, 2025
Docket24-40
StatusUnpublished

This text of Quackenbush v. American Honda Motor Co., Inc. (Quackenbush v. American Honda Motor Co., Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Quackenbush v. American Honda Motor Co., Inc., (9th Cir. 2025).

Opinion

NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS APR 4 2025 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS FOR THE NINTH CIRCUIT

MARY QUACKENBUSH; MARISSA No. 24-33 FEENEY; ANNE PELLETTIERI, D.C. No. Individually and On Behalf of All Others 3:20-cv-05599-WHA Similarly Situated,

Plaintiffs - Appellants, MEMORANDUM*

v.

AMERICAN HONDA MOTOR CO., INC., a California corporation; HONDA MOTOR CO., LTD., a foreign corporation,

Defendants - Appellees.

MARY QUACKENBUSH; MARISSA No. 24-40 FEENEY; ANNE PELLETTIERI, D.C. No. 3:20-cv-05599-WHA Plaintiffs - Appellees,

AMERICAN HONDA MOTOR CO., INC.; HONDA MOTOR CO., LTD.,

Defendants - Appellants.

Appeal from the United States District Court

* This disposition is not appropriate for publication and is not precedent except as provided by Ninth Circuit Rule 36-3. for the Northern District of California William Alsup, District Judge, Presiding

Argued and Submitted March 7, 2025 Pasadena, California

Before: TALLMAN, CLIFTON, and CHRISTEN, Circuit Judges.

Plaintiff-Appellants (“Plaintiffs”) are two classes of Honda vehicle owners

who allege that Defendant-Appellee American Honda Motor Co., Inc. (“Honda”)

injured them by failing to disclose the existence of a faulty engine part, the VTC

actuator, upon purchase of their vehicles. As the parties are familiar with the facts

of this case we recount them here only as necessary.

The District Court certified two Illinois classes: the Illinois Repair Class and

the Illinois New and Used Purchaser Class.1 Members of the Illinois Repair Class

purchased cars that contained the VTC actuator defect, the defect manifested, and

they paid out-of-pocket to have the VTC actuator repaired. Members of the Illinois

New and Used Purchaser Class purchased cars that contained the VTC actuator

defect, but they did not pay out of pocket to have it repaired. The case proceeded to

a jury trial. Both parties timely appealed a variety of issues. We have jurisdiction

and we affirm. See 28 U.S.C. § 1291.

1 The District Court also certified a third class of purchasers in California. The jury returned a verdict in favor of Honda on the claims of that class. The judgment entered on that verdict is not before us because it has not been appealed.

2 24-40 1. The District Court did not err in granting summary judgment to Honda for

the Illinois New and Used Purchaser Class’s Illinois Consumer Fraud and Deceptive

Business Practices Act (ICFA) claims. See Idaho Conservation League v. Poe, 86

F.4th 1243, 1246 (9th Cir. 2023). Illinois benefit-of-the-bargain damages do not

contemplate using repair costs as a proxy for diminution of value where the latent

defect will never materialize for the majority of the class. See Posner v. Davis, 395

N.E.2d 133, 137–38 (Ill. App. Ct. 1979). And, as the District Court pointed out,

using repair costs to calculate damages would provide a windfall to most members

of the class. So, the District Court did not err in granting summary judgment to

Honda on the Illinois New and Used Purchaser Class’s ICFA claims.

2. The District Court did not abuse its discretion by reducing Plaintiffs’

asserted attorney’s fees to reach its fee award. Maag v. Wessler, 993 F.2d 718, 719

(9th Cir. 1993). The District Court properly began its analysis with the Plaintiffs’

asserted lodestar. Aliano v. Transform SR LLC, 167 N.E.3d 665, 678 (Ill. App. Ct.

2020). It then provided a “concise but clear explanation as to how it came up with”

the attorney’s fees award based on its “superior understanding of the litigation.”

Vargas v. Howell, 949 F.3d 1188, 1195 (9th Cir. 2020). In reducing the fee award,

the District Court relied on the fact that the Illinois Repair Class, the smallest of the

three classes, was the only prevailing class at trial and that Plaintiffs’ prevailing

claims based on their cost to repair were “relatively simple within the context of this

3 24-40 litigation.” While we fail to see why the size of the class should matter, the District

Court ultimately reached a fee award that was over eighty-five percent of the total

damages award. Thus, the District Court did not abuse its discretion in calculating

its $1,207,072.88 fee award.

3. The District Court did not abuse its discretion by denying Illinois Repair

Class representative Marissa Feeney’s request for a class representative award.

Rodriguez v. W. Publ’g Corp., 563 F.3d 948, 958 (9th Cir. 2009). Such awards are

discretionary, and Feeney did not meet any of the special factors courts evaluate

when deciding whether to grant such awards. Id. at 958–59.

4. The District Court did not abuse its discretion by not including a safety

instruction in its jury instruction on materiality under ICFA. See Crowley v. Epicept

Corp., 883 F.3d 739, 747–48 (9th Cir. 2018). Under ICFA, a defect can be material

to Illinois consumers without affecting safety. See Toulon v. Cont’l Cas. Co., 877

F.3d 725, 739–40 (7th Cir. 2017). Plaintiffs forwarded multiple theories of

materiality under ICFA throughout the course of this litigation. So, Plaintiffs’

decision at trial to move away from safety as their primary theory of materiality was

not inconsistent with their previous litigation positions.

5. The jury’s verdict that the defect was material under ICFA was supported

by substantial evidence. Gilbrook v. City of Westminster, 177 F.3d 839, 856 (9th

4 24-40 Cir. 1999), as amended on denial of reh’g and reh’g en banc (July 15, 1999). The

jury was presented with evidence at trial of Honda’s own years-long investigation

into the VTC actuator rattle based on consumer complaints as well as testimony from

Illinois Repair Class representative Feeney. Thus, there was sufficient evidence on

the record to support the jury’s finding that Honda’s omission regarding the VTC

actuator defect would be material to a reasonable consumer under ICFA.

6. The jury’s verdict that Honda knew the VTC actuator had a material defect

throughout the class period is supported by substantial evidence. See Gilbrook, 177

F.3d at 856. The jury was presented with evidence at trial, through the form of

internal Honda investigations and reports, that Honda knew of the defect before the

first class vehicle was sold and continued to know the VTC actuator was defective

throughout the class period. There was thus substantial evidence to support the

jury’s verdict that Honda had the requisite knowledge throughout the class period.

7. The jury’s verdict that the Illinois Repair class members were damaged was

supported by substantial evidence. Id. The members of the Illinois Repair class all

had vehicles which contained the VTC actuator defect, the defect manifested, and

they paid to repair the defect out of pocket. This was substantial evidence to support

the jury’s verdict that the Illinois Repair class members were damaged.

8. The District Court did not abuse its discretion by not excluding the

5 24-40 testimony of Plaintiffs’ expert witness Michael Stapleford.

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Related

Primiano v. Cook
598 F.3d 558 (Ninth Circuit, 2010)
Rodriguez v. West Publishing Corp.
563 F.3d 948 (Ninth Circuit, 2009)
Posner v. Davis
395 N.E.2d 133 (Appellate Court of Illinois, 1979)
Roger Murray v. S. Route Maritime Sa
870 F.3d 915 (Ninth Circuit, 2017)
Sophie Toulon v. Continental Casualty Company
877 F.3d 725 (Seventh Circuit, 2017)
Kenton Crowley v. Epicept Corp.
883 F.3d 739 (Ninth Circuit, 2018)
Gilbrook v. City of Westminster
177 F.3d 839 (Ninth Circuit, 1999)

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