Raynaldo v. American Honda Motor Co., Inc.

CourtDistrict Court, N.D. California
DecidedOctober 19, 2023
Docket4:21-cv-05808
StatusUnknown

This text of Raynaldo v. American Honda Motor Co., Inc. (Raynaldo v. American Honda Motor Co., 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
Raynaldo v. American Honda Motor Co., Inc., (N.D. Cal. 2023).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 RONALD RAYNALDO, et al., Case No. 21-cv-05808-HSG

8 Plaintiffs, ORDER GRANTING IN PART AND 9 v. DENYING IN PART MOTION TO DISMISS 10 AMERICAN HONDA MOTOR CO., INC., Re: Dkt. No. 79 Defendant. 11

12 Pending before the Court is Defendant American Honda Motor Co., Inc.’s (“Honda”) 13 motion to dismiss the Second Amended Class Action Complaint (“SACAC”). Plaintiffs1 filed the 14 SACAC on November 17, 2022. See Dkt. No. 78. The Court finds this matter appropriate for 15 disposition without oral argument and the matter is deemed submitted. See Civil L.R. 7-1(b). For 16 the reasons discussed below, the Court GRANTS IN PART AND DENIES IN PART the 17 motion. 18 I. BACKGROUND 19 Plaintiffs bring numerous claims against Honda in the SACAC. Plaintiffs allege that 20 Honda CR-Vs (model years 2017-2019) and Honda Accords (model years 2016-2019) (“Class 21 Vehicles”) have a common defect that causes parasitic draining.2 In its September 20, 2022 Order 22 Granting Defendant’s Motion to Dismiss the Amended Class Action Complaint, the Court found 23 that Plaintiffs failed to identify the electrical components that allegedly caused parasitic draining. 24 See Dkt. No. 70. 25

26 1 Plaintiffs allege that they purchased defective vehicles from Honda. Plaintiffs are Ronald Raynaldo, Richard Barrie, Fernanda Nunes Ferreira, George Jones, Robert Lizzul, Mithcell Bryon 27 Pazanki, Harry Rapp, Dennis Woods, Dayane Tessinari, Brendan Sanger, and Jason Casey. 1 Plaintiffs allege that their vehicles suffered from issues including failure to start and 2 diminished reliability and safety. SACAC ¶¶ 19, 25, 31, 41, 47, 53, 63, 77, 88. 3 II. LEGAL STANDARD 4 Rule 8(a) requires that a complaint contain “a short and plain statement of the claim 5 showing that the pleader is entitled to relief[.]” Fed. R. Civ. P. 8(a)(2). A defendant may move to 6 dismiss a complaint for failing to state a claim upon which relief can be granted under Rule 7 12(b)(6). “Dismissal under Rule 12(b)(6) is appropriate only where the complaint lacks a 8 cognizable legal theory or sufficient facts to support a cognizable legal theory.” Mendiondo v. 9 Centinela Hosp. Med. Ctr., 521 F.3d 1097, 1104 (9th Cir. 2008). To survive a Rule 12(b)(6) 10 motion, a plaintiff must plead “enough facts to state a claim to relief that is plausible on its face.” 11 Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). A claim is facially plausible when a 12 plaintiff pleads “factual content that allows the court to draw the reasonable inference that the 13 defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). In 14 reviewing the plausibility of a complaint, courts “accept factual allegations in the complaint as 15 true and construe the pleadings in the light most favorable to the nonmoving party.” Manzarek v. 16 St. Paul Fire & Marine Ins. Co., 519 F.3d 1025, 1031 (9th Cir. 2008). Nonetheless, courts do not 17 “accept as true allegations that are merely conclusory, unwarranted deductions of fact, or 18 unreasonable inferences.” In re Gilead Scis. Secs. Litig., 536 F.3d 1049, 1055 (9th Cir. 2008). 19 Fraud claims and claims that “sound in fraud” or are “grounded in fraud” must satisfy the 20 heightened pleading requirements of Rule 9(b), which provides, in relevant part, that “[i]n alleging 21 fraud or mistake, a party must state with particularity the circumstances constituting fraud or 22 mistake.” Fed. R. Civ. P. 9(b); see also Kearns v. Ford Motor Co., 567 F.3d 1120, 1125 (9th Cir. 23 2009). “Malice, intent, knowledge and other conditions of a person’s mind may be alleged 24 generally.” Id. 25 “[The Ninth Circuit] has interpreted Rule 9(b) to require that ‘allegations of fraud are 26 specific enough to give defendants notice of the particular misconduct which is alleged to 27 constitute the fraud charged so that they can defend against the charge and not just deny that they 1 citation omitted). This means that the complaint must allege “the who, what, when, where, and 2 how” of the alleged fraudulent conduct Cooper v. Pickett, 137 F.3d 616, 627 (9th Cir. 1997) 3 (internal citation omitted). 4 III. DISCUSSION 5 Honda’s arguments as to why the SACAC should be dismissed largely mirror those it 6 made in seeking dismissal of the previous Amended Class Action Complaint. They contend that 7 (1) Plaintiffs still fail to plead a defect; (2) the statutory fraud claims are not adequately pled; (3) 8 Plaintiffs fail to allege breach of warranty; (4) Plaintiffs are unable to maintain a claim under an 9 implied warranty theory because they fail to adequately plead privity or an exception to that 10 requirement; fail to show their cars are unmerchantable; and fail to show that any implied 11 warranty survives beyond the duration of the express warranty; and (5) Plaintiffs’ equitable relief 12 claims fail. 13 In the SACAC, Plaintiffs describe electronic systems or “modules” that work together to 14 control the functions of the vehicle. At a high level, these electronic control units (“ECUs”) 15 communicate via the Controller Area Network (“CAN”). See SACAC ¶ 2. Specifically, Plaintiffs 16 allege that problems associated with the Fast Controller Area Network (“F-CAN”), the network 17 between the powertrain and units controlling the chassis functions, prevent the F-CAN from 18 entering sleep mode. The result is that the F-CAN draws as much as 350mA even when the 19 vehicle is off, more than seven times the amount it should be drawing. This causes various 20 electrical units to draw too much battery power, which lowers the voltage of the battery, causing 21 various malfunctions and ultimately battery failure. See SACAC ¶ 3. 22 Plaintiffs allege that the Class Vehicles suffer from an “inherent defect.[]” SACAC ¶ 1. 23 That alleged defect is that the vehicle fails to properly shut off, thereby draining the battery. Id. ¶ 24 2. The defect impacts the vehicles’ F-CAN, “which is a subnetwork of the vehicles’ main CAN 25 system.” Id. ¶ 3. The CAN is how the ECUs communicate. Id. ¶ 2. 26 Plaintiffs allege that each new car purchased was covered by a New Vehicle Limited 27 Warranty (“NVLW”). SACAC ¶¶ 216-222. The warranty that Plaintiffs allege covered their 1 217. 2 Plaintiffs bring a total of twenty-three claims under the laws of Massachusetts, Michigan, 3 Nevada, Arizona, New York, Florida, Iowa, and California as well as common-law claims. Those 4 claims generally sound in fraud and are based on omission or concealment; are for breach of 5 warranty; or are for unjust enrichment. Plaintiffs seek damages; injunctive and declaratory relief; 6 and attorneys’ fees and costs. See id. § X. 7 The threshold question on this motion is whether Plaintiffs have adequately pled a defect. 8 The Court is persuaded that they have. Next, Plaintiffs’ claims can be grouped into two basic 9 categories: those sounding in fraud and those based on breach of warranty. The Court finds that 10 Plaintiffs have adequately pled statutory fraud claims but have failed to adequately plead their 11 concealment or omission claims sounding in fraud.

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Raynaldo v. American Honda Motor Co., Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/raynaldo-v-american-honda-motor-co-inc-cand-2023.