Samarneh v. Mercedes-Benz USA, LLC

District Court, E.D. California·Decided June 20, 2025·No. 1:23-cv-00930·Unknown

Opinion

Laura Samarneh, No. 1:23-cv-00930-KJM-EPG Plaintiff, ORDER Vv. Mercedes-Benz USA, LLC, et al., 1S Defendants. Plaintiff Laura Samarneh alleges her Mercedes-Benz car did not measure up to the company’s warranty despite many repair attempts at the Mercedes dealership. She filed this case against defendant Mercedes-Benz USA, LLC, for relief under the California Song-Beverly Consumer Warranty Act, the California Uniform Commercial Code and the federal Magnuson- Moss Warranty Act. Mercedes moves for summary judgment. After the parties filed memoranda in support of and in opposition to Mercedes’s motion, see generally Mot., ECF No. 38; Opp’n, ECF No. 41; Reply, ECF No. 42, the California Supreme Court issued its opinion in Rodriguez v. FCA US LLC, 17 Cal. Sth 189 (2024). This court held oral argument, at which Sepehr Daghighian appeared for plaintiff, and Mehgan Gallagher appeared for Mercedes. See Mins., ECF No. 50. At argument, the court and the parties discussed the Rodriguez opinion extensively, as it clarified an ambiguity within the Song-Beverly Act. After hearing the parties’ oral arguments, the court directed the parties to file a supplemental

opposition and reply, Order (May 16, 2025). That supplemental briefing is now complete, and the court has now submitted the motion. See generally Suppl. Opp’n, ECF No. 54; Suppl. Reply, ECF No. 55. Under the familiar standard of Rule 56, Mercedes is entitled to summary judgment if it shows “there is no genuine dispute as to any material fact” and it “is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). A dispute is “genuine” under Rule 56 if “a reasonable jury could return a verdict for the nonmoving party,” i.e., Samarneh. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). A fact is “material” if it “might affect the outcome of the suit under the governing law.” Id. The parties must cite “particular parts of materials in the record.” Fed. R. Civ. P. 56(c)(1). The court then views the record in the light most favorable to Samarneh and draws reasonable inferences in her favor. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587–88 (1986); Adickes v. S.H. Kress & Co., 398 U.S. 144, 157 (1970). The court grants in part and denies in part Mercedes’s motion under that standard, as explained in this order. I. SONG-BEVERLY ACT (CLAIMS 1–3) Samarneh’s first three claims all arise under California’s Song-Beverly Act, commonly known as the “lemon law.” It is simpler to begin with the relevant legal backdrop, rather than the evidence. The Song-Beverly Act was originally passed over fifty years ago. Rodriguez, 17 Cal. 5th at 200; see also Cal. Civ. Code § 1790. It is a “remedial statute” that protects people who have purchased products covered by express warranties. Rodriguez, 17 Cal. 5th at 200 (quoting Robertson v. Fleetwood Travel Trailers of Cal., 144 Cal. App. 4th 785, 798 (2006)). The state legislature added “motor vehicle provisions” to the Song-Beverly Act in the 1980s. See id. at 201. Among other things, these provisions give people who buy “new” cars and trucks with express warranties a “refund-or-replace remedy.” Id. at 195. Manufacturers must “promptly replace” a defective “new motor vehicle,” or they must “promptly make restitution” if their attempts to service and repair the “new motor vehicle” do not bring it into conformity with the express warranty in question. Cal. Civ. Code § 1793.2(d)(2), (e). Samarneh claims she is entitled to these remedies. See First Am. Compl. ¶¶ 48–63. Mercedes contends she is not, and it seeks summary judgment to that effect. Their dispute boils down to a disagreement about what is a “new motor vehicle” and what is not. The Song-Beverly Act defines “new motor vehicle” in section 1793.22(e)(2). The phrase means more than just brand new cars and trucks; among other things, it also means “a dealer-owned vehicle and a ‘demonstrator’ or other motor vehicle sold with a manufacturer’s new car warranty.” Cal. Civ. Code § 1793.22(e)(2). “A demonstrator is a vehicle assigned by a dealer for the purpose of demonstrating qualities and characteristics common to vehicles of the same or similar model and type.” Id. Some parts of the definition of “new motor vehicle” are fairly clear: “dealer-owned” cars, for instance, would count as “new motor vehicles” if sold with the manufacturer’s new car warranty. The definition gets murkier toward the end, with the catch-all reference to “other motor vehicle sold with a manufacturer’s new car warranty.” Id. In isolation, that catch-all might suggest any vehicle with an unexpired new-car warranty, even a used car purchased from a third- party dealer or an individual private seller, would count as a “new motor vehicle.” See Rodriguez, 17 Cal. 5th at 197. Then again, the definition could also be narrower. It might be limited to vehicles that are essentially new—but technically not new, like the demonstrators and dealer-owned cars the statute specifically mentions—as long as a new-car warranty was issued at the time of the sale. See id. California appellate courts confronted this ambiguity soon after the statutory definition of “new motor vehicle” was enacted. In 1989, a woman bought a BMW with more than 7,000 miles on the odometer. Jensen v. BMW of N. Am., Inc., 35 Cal. App. 4th 112, 119 (1995). A salesman told her the car had been used as a demonstrator for the dealership. Id. He also told her she would be entitled to the manufacturer’s 36,000-mile new-car warranty on top of the miles already on the car. Id. Contrary to the salesman’s claim, however, the car was not a demonstrator. See id. at 120. It was used. Id. Brake problems soon surfaced. See id. Repairs efforts failed. Id. The woman sued after her request for a refund or replacement fell on deaf ears. See id. Eventually the case reached the California Court of Appeal. The court consulted the Song- Beverly Act’s text, its purposes and its legislative history, and it held that “cars sold with a balance remaining on the manufacturer’s new motor vehicle warranty” are included in the definition of “new motor vehicle” of section 1793.22(e)(2). Id. at 123. In the years that followed, however, opinions from the state’s appellate courts show there were doubts about the reasoning in Jensen. In 2019, for example, one court asked, “would a car accompanied by a 20-year warranty still be a ‘new motor vehicle’ under the Song-Beverly Act on year 18?” Kiluk v. Mercedes-Benz USA, LLC, 43 Cal. App. 5th 334, 340 n.4 (2019). The court did not read the statute so broadly. See id. Or as the Fourth District Court of Appeal had concluded a few years before, Jensen should be “read in light of the facts then before the court,” especially the fact that a full new-car warranty was issued at the time of the sale. Dagher v. Ford Motor Co., 238 Cal. App. 4th 905, 923 (2015). But not all were so skeptical. Another state appellate court held that Jensen was “properly decided.” Stiles v. Kia Motors Am., Inc., 320 Cal.

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