Shapiro v. Financial Services Vehicle Trust CA2/1

California Court of Appeal·Decided December 27, 2022·No. B305911·Unpublished

Opinion

Filed 12/27/22 Shapiro v. Financial Services Vehicle Trust CA2/1 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS

California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION ONE

SERGIO SHAPIRO, B305911

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. BC688705) v.

FINANCIAL SERVICES VEHICLE TRUST et al.,

Defendants and Respondents.

APPEAL from a judgment of the Superior Court of Los Angeles County, Richard E. Rico, Judge. Affirmed. Niddrie Addams Fuller Singh, Rupa G. Singh; Leech Tishman Fuscaldo & Lampl, Fadi K. Rasheed for Plaintiff and Appellant. Caley & Associates, Rebecca A. Caley, Christopher M. Domin for Defendant and Respondent BMW of North America, LLC. ___________________________________ Sergio Shapiro filed a complaint against BMW of North America LLC (BMW or BMW NA) alleging invasion of privacy and related causes of action arising from the presence of tracking devices on a leased vehicle. The trial court granted BMW’s motion for summary judgment on the ground that the only information BMW collected was the vehicle’s mileage, in which a lessee has no privacy interest. We affirm. BACKGROUND A. Shapiro’s Lease and the Prior, Lessor’s Lawsuit On January 30, 2012, Botavia Energy LLC, through Shapiro, its sole member, leased a 2012 BMW 750i (2012 BMW or the leased vehicle) for a three-year term with a 30,000 mileage allowance. Shapiro personally guaranteed the lease and was the primary driver. Defendant BMW of North America, LLC (BMW) oversaw the engineering, design, technology, and customer service for BMW cars leased in the United States. Botavia Energy returned the leased vehicle to the dealer on April 14, 2015, with the odometer showing it been driven 33,347 miles. Shapiro attested to the accuracy of the mileage to the best of his knowledge and subject to fines or imprisonment for a false statement. In 2015, the lessor, Financial Services Vehicle Trust (Financial Services Trust), sued Botavia Energy and Shapiro for odometer tampering under state and federal law. After a bench trial, Botavia Energy and Shapiro were found liable for all asserted odometer tampering claims, and ordered to pay damages, attorneys’ fees, and costs totaling $427,840.90. Our colleagues in Division Two affirmed the judgment, which has been paid. (Fin. Servs. Vehicle Trust v. Botavia Energy LLC (May 1, 2019, B285699) [nonpub. opn.].)

2 B. Current Lawsuit After entry of judgment against him and Botavia Energy, Shapiro sued BMW, Financial Services Trust (the lessor), and BMW Financial Services NA (the lease servicing agent) for invasion of privacy, alleging that devices attached to the leased vehicle had enabled defendants to monitor Shapiro’s location and movement without his consent. The trial court dismissed with prejudice all claims against Financial Services Trust and BMW Financial Services NA due to Shapiro’s failure to file a compulsory cross-complaint against them in the prior, odometer tampering action. After rulings on demurrer, the operative complaint asserted causes of action against BMW for invasion of privacy, electronic tracking in violation of Penal Code section 664.7, intrusion upon seclusion, and civil conspiracy. C. Summary Judgment 1. Motion BMW moved for summary judgment or adjudication, arguing it never tracked Shapiro’s or the car’s location or movements. In support of the motion, Heini Schulz, BMW’s ConnectedDrive Services manager, declared the leased 2012 BMW was equipped with a software program called the BMW Assist Safety Plan (BMW Assist), which could track the vehicle’s location under three triggering events: (1) If the customer pushed a dashboard “SOS” button seeking emergency assistance; (2) if the Automatic Collision Notification (ACN) system sensed a collision; and (3) if the vehicle was stolen, at which time BMW would provide the vehicle’s location to law enforcement authorities only.

3 Luis Holguin, BMW’s customer support engineer, declared that none of these triggering events occurred while Shapiro leased the 2012 BMW. BMW also offered Shapiro’s deposition testimony that none of the triggering events occurred. Schulz and Holguin declared that BMW Assist included a fourth information transmission capability, called “Teleservice,” which transmits, through local cell towers to BMW’s servers, performance and service information (called FASTA data) from various sensors when they reach certain mileage benchmarks. However, unlike the three emergency services, ante, Teleservice did not record and could not transmit the vehicle’s location. As Holguin put it, with Teleservice, “computer sensors throughout the Vehicle record[] performance information about the Vehicle’s component parts and systems. Upon reaching certain mileage benchmarks perceived by the Vehicle sensors, Teleservice transmits performance and maintenance notifications, such as low oil or brake replacement warnings, to a BMW NA data server through wireless cell phone technology. After Teleservice transmits a maintenance notification to BMW NA’s server, BMW NA then forwards said maintenance notification to the customer’s local authorized BMW dealer who may then contact the customer for recommended service.” BMW attached as exhibit 11 to its motion the 2012 BMW’s Teleservice report, which reflected numerous performance and service notifications during Shapiro’s lease term but no GPS information. 2. Opposition In opposition to BMW’s motion, Shapiro argued that the 2012 BMW’s Teleservice system illegally tracked his location using GPS.

4 In support of the opposition, Sergey Chuboksarov, a motorcycle expert working for BMW Motorrad, stated in an unsworn declaration that he worked “for BMW Group.” When BMW objected that the declaration was unsworn, Shapiro filed a sworn declaration in which Chuboksarov retracted his claim to work “for” BMW, now declaring only that he worked “with” BMW. Chuboksarov stated that “as a BMW Tech” he had access to “Dealerspeed.net portal” (DSCnet), of which he was an experienced user. He “spent more than 150 hours” researching and preparing his report, during which he compared unspecified documents provided by Shapiro about the 2012 BMW against DSCnet records, using similar records about a “donor car” as a control. Chuboksarov declared that although he was able to obtain full DSCnet records on the donor car, “there was no available information about” the 2012 BMW in DSCnet. He stated, “I think that the reason is a system glitch or BMW Group NA made the history of that car fully classified and confidential.” Chuboksarov stated that using an electronic “technical request,” designated “Technical Request (Campaign ID: TSR_F01_US_MILAGE),” BMW could cause a vehicle to transmit information to servers in Germany. Employing a similar technique, he accessed data transmitted from the donor car’s COMbox unit and Car Infotainment Computer to BMW’s servers. That data included not only standard information such as mileage but also the donor car’s GPS coordinates. Although the data had been transmitted to BMW’s servers, an inquiry to

5 DSCnet found no GPS location data in the donor car’s FASTA 1 information. Chuboksarov’s statement contained several undefined terms and unexplained processes. He explained neither the functions of the COMbox and Car Infotainment Computer nor how they aided in GPS data collection. Neither he nor Shapiro have ever explained what DSCnet is or how it functions.

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