Raynaldo v. American Honda Motor Co., Inc.

District Court, N.D. California·Decided October 19, 2023·No. 4:21-cv-05808·Unknown

Opinion

RONALD RAYNALDO, et al., Case No. 21-cv-05808-HSG

Plaintiffs, ORDER GRANTING IN PART AND v. DENYING IN PART MOTION TO DISMISS Re: Dkt. No. 79 Defendant.

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

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

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

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