Quackenbush v. American Honda Motor Company, Inc.

CourtDistrict Court, N.D. California
DecidedJanuary 13, 2023
Docket3:20-cv-05599
StatusUnknown

This text of Quackenbush v. American Honda Motor Company, Inc. (Quackenbush v. American Honda Motor Company, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California 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 Company, Inc., (N.D. Cal. 2023).

Opinion

1 2 3 4 5 6 UNITED STATES DISTRICT COURT 7 NORTHERN DISTRICT OF CALIFORNIA 8

10 MARY QUACKENBUSH, MARISSA FEENEY, and ANNE PELLETTIERI, on 11 behalf of themselves and all others similarly No. C 20-05599 WHA situated, 12

Plaintiffs,

13 ORDER RE MOTION FOR v. SUMMARY JUDGMENT 14 AMERICAN HONDA MOTOR 15 COMPANY, INC., and HONDA MOTOR COMPANY, LTD., a Japanese Corporation, 16 Defendants. 17

18 19 INTRODUCTION 20 In this certified consumer class action, defendants move for summary judgment. The 21 motion is GRANTED IN PART AND DENIED IN PART. 22 STATEMENT 23 Vehicle owners who purchased their cars from authorized Honda dealers allege that an 24 engine component within their cars, namely, the variable timing control actuator 14310-R44-A01 25 (“VTC actuator”), was defective. Sometimes, the VTC actuator rattled on vehicle ignition due to 26 the premature disengagement of a stopper pin located within it. Honda discovered the problem 27 beginning in 2008 after receiving complaints of rattling and pursued an eight-year investigation. 1 the VTC actuator model with a new part. Plaintiffs say Honda’s failure to disclose this defect 2 injured them and posed a significant safety hazard. 3 Plaintiffs filed their class action complaint in August 2020, then a first amendment in 4 November 2020, the operative complaint. A motion to dismiss failed in its entirety in February 5 2021. Discovery ensued for several months, and plaintiffs moved for class certification in October 6 2021 (Dkt. Nos. 1, 20, 36, 68). In December 2021, after full briefing and additional discovery 7 disputes, an order certified three classes. Both parties filed motions for reconsideration. An order 8 dated April 27, 2022, redefined the certified classes and clarified the operative class claims (Dkt. 9 Nos. 156, 157, 169). 10 There are now three certified classes. First, Mary Quackenbush represents the “California 11 Repair Class,” which consists of all persons who purchased a new or used class vehicle equipped 12 with a VTC actuator from an authorized Honda dealer in California, and who paid to have their 13 VTC actuator repaired by an authorized Honda dealer in California.1 This class is pursuing 14 certified claims for (1) violation of California’s Consumer Legal Remedies Act (CLRA); (2) 15 violation of California’s Unfair Competition Law (UCL); and (3) fraudulent omission. 16 In her individual capacity, Quackenbush also pursues claims for breach of implied 17 warranty pursuant to (1) California’s Song-Beverly Act and (2) California Commercial Code 18 Section 2314. 19 Second, Marissa Feeney represents the “Illinois Repair Class,” which consists of all 20 persons who purchased a new or used class vehicle equipped with a VTC actuator from an 21 authorized dealer in Illinois, and who paid to have their VTC actuator repaired by an authorized 22 Honda dealer in Illinois. This class is pursuing claims for (1) violation of the Illinois Consumer 23 Fraud and Deceptive Business Practices Act (“ICFA”) and (2) fraudulent omission. 24 In her individual capacity, Feeney also pursues a claim for breach of implied warranty 25 pursuant to Section 2-316 of the Illinois Commercial Code. 26 Third, Anne Pellettieri represents the “Illinois New and Used Purchaser Class” which 27 1 consists of current owners of both new and used class vehicles who purchased their class vehicles 2 equipped with a VTC actuator from an authorized Honda dealer in Illinois, and former owners of 3 the same who resold (or traded it in) to an authorized Honda dealer in Illinois. No member of the 4 Illinois Repair Class can be a member of this class, and any purchaser who received an actuator 5 replacement free of charge is excluded. This class is pursuing the same claims as the Illinois 6 Repair class, namely, (1) violation of the ICFA and (2) fraudulent omission. 7 In her individual capacity, Pellettieri also pursues a breach of implied warranty claim in 8 violation of Section 2-316 of the Illinois Commercial Code. 9 Defendants American Honda Motor Company and Honda Motor Company now move for 10 summary judgment on all named plaintiffs’ individual implied warranty claims, Anne Pellettieri’s 11 ICFA and fraudulent omission claims, the California Repair Class’s fraudulent omission claim, 12 and various damages arguments under both Illinois and California law. This order follows full 13 briefing and oral argument. 14 ANALYSIS 15 Summary judgment is proper where the admissible evidence shows that “there is no 16 genuine dispute as to any material fact and the movant is entitled to judgment as a matter of 17 law.” Fed. R. Civ. P. 56(a). A genuine dispute exists when there is sufficient evidence such that 18 a reasonable jury could return a verdict for the nonmoving party. Anderson v. Liberty Lobby, 19 Inc., 477 U.S. 242, 247–49 (1986). Material facts are those which may affect the outcome of the 20 case. Ibid. “In judging evidence at the summary judgment stage, the court does not make 21 credibility determinations or weigh conflicting evidence. Rather, it draws all inferences in the 22 light most favorable to the nonmoving party.” Soremekun v. Thrifty Payless, Inc., 509 F.3d 978, 23 984 (9th Cir. 2007). But “mere allegation and speculation do not create a factual dispute for 24 purposes of summary judgment.” Nelson v. Pima Cmty. Coll., 83 F.3d 1075, 1081–82 (9th Cir. 25 1996). Where the nonmoving party bears the burden of proof on a given issue, summary 26 judgment is appropriate if the moving party demonstrates an absence of evidence to support the 27 nonmoving party’s position. Celotex Corp. v. Catrett, 477 U.S. 317, 325 (1986). 1. INDIVIDUAL PLAINTIFFS’ CLAIMS. 1 A. FEENEY’S AND PELLETTIERI’S IMPLIED WARRANTY 2 CLAIMS. 3 Plaintiffs do not challenge dismissal of Pellettieri and Feeney’s claims for breach of 4 implied warranty in violation of Section 2-316 of the Illinois Commercial Code (Opp. 25). 5 Accordingly, defendants’ motion for summary judgment on the Illinois implied warranty claims 6 is GRANTED. 7 B. QUACKENBUSH’S IMPLIED WARRANTY CLAIMS. 8 Defendants offer no argument for summary judgment regarding Quackenbush’s implied 9 warranty claim under the California Song-Beverly Act. Accordingly, that claim remains ripe for 10 resolution by a jury. 11 Defendants, however, move for summary judgment on Quackenbush’s implied warranty 12 claim under Section 2314 of the California Commercial Code. Section 2314 provides “[a] 13 warranty that the goods shall be merchantable is implied in a contract for their sale if the seller is 14 a merchant with respect to goods of that kind.” The general rule in California is that “privity of 15 contract is required in an action for breach of either express or implied warranty and that there is 16 no privity between the original seller and subsequent purchaser who is in no way a party to the 17 original sale.” Burr v. Sherwin Williams Co., 42 Cal. 2d 682, 695 (1954). A plaintiff asserting 18 breach of warranty claims under Section 2314 “must stand in vertical contractual privity with the 19 defendant.” Clemens v. DaimlerChrysler Corp., 534 F. 3d 1017, 1023 (9th Cir. 2008). A buyer 20 and seller stand in privity only if they are in adjoining links of the distribution chain; an end 21 consumer who buys products from a retailer is not in privity with the manufacturer of the 22 products. Ibid. Although some particularized exceptions to the privity requirement have 23 developed in California law, none applies here.2 This is a matter of California law, and 24 California requires privity.

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Quackenbush v. American Honda Motor Company, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/quackenbush-v-american-honda-motor-company-inc-cand-2023.