Street Retail LLC v. U-Haul International, Inc.

CourtDistrict Court, D. Delaware
DecidedMarch 24, 2025
Docket1:24-cv-00731
StatusUnknown

This text of Street Retail LLC v. U-Haul International, Inc. (Street Retail LLC v. U-Haul International, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Street Retail LLC v. U-Haul International, Inc., (D. Del. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE STREET RETAIL LLC, Plaintiff, v. Civil Action No. 24-731-RGA CURT MANUFACTURING, LLC, U- HAUL INTERNATIONAL, INC., and PETER BENZIGER and KATHARINE BENZIGER, Defendants.

MEMORANDUM OPINION Curtis J. Crowther, ROBINSON & COLE LLP, Wilmington, DE; John E. O’Brien, Jr., ROBINSON & COLE LLP, Boston, MA; Matthew R. Cohen, DENENBERG TUFFLEY, PLLC, Southfield, MI, Attorneys for Street Retail. Shae Lyn Chasanov, TYBOUT, REDFEARN & PELL, Wilmington, DE; Anthony Signoracci, CHARTWELL LAW OFFICES, LLP, Boston, MA, Attorneys for U-Haul International, Inc. Shari L. Milewski, MARON MARVEL BRADLEY & ANDERSON LLC, Wilmington, DE, Attorney for Curt Manufacturing LLC. Theodore J. Segletes, III, LAW OFFICES OF COBB & LOGULLO, Wilmington, DE, Attorney for Peter Benziger and Katharine Benziger.

March 2025

and (4 — ANDREWS, UNI ATES DISTRICT JUDGE: Before me are Curt and U-Haul’s Motions to Dismiss. (D.I. 64, 66). I have considered the parties’ briefing. (D.I. 65, 68, 71, 72, 74, 79, 80, 84). For the reasons set forth below, both motions are DENIED. I. BACKGROUND! On February 24, 2021, a fire occurred inside the garage attached to an apartment building owned by Plaintiff Street Retail. (D.I. 1-1 at 5 of 14). Street Retail alleges that the cause of the fire was faulty wiring on the tow hitch of a vehicle in the garage. (/d.). Curt Manufacturing (“Curt”), the manufacturer of the tow hitch, had recalled it in or about 2011. (/d.). Street Retail sued Curt, U-Haul, which installed the hitch, and Peter and Katharine Benziger, the owners of the vehicle (id. at 5-10 of 14), seeking over two million dollars in property damage. (D.J. 1 at 2 of 6; D.J. 1-1 at 12 of 14). Street Retail initially filed its complaint in Suffolk Superior Court in Massachusetts (D.I. 1 at 1 of 6) on February 14, 2024, bringing multiple claims for negligence and breach of implied warranties. (D.I. 1-1 at 5-11 of 14). The case was removed to the District of Massachusetts, then transferred to this Court. (D.I. 1 at 1 of 6; D.I. 44). Curt and U-Haul now move to dismiss for failure to state a claim under Rule 12(b)(6) solely on the grounds that the statutes of limitations for the negligence and breach of implied warranties claims have run. (D.I. 65 at 3; D.I. 68 at 3). Curt argues that, under Delaware law, both claims are time-barred; its speaking motion makes no reference at all to Massachusetts law. (See D.I. 65). Curt’s reply brief cites various Massachusetts statutes and ten cases applying Massachusetts law.

! This Court has jurisdiction over this case under 28 U.S.C. § 1332(a). (D.I. 1 at 3 of 6). 2 Street Retail also sued Hyundai Motor America, the seller of the vehicle, but has since stipulated to dismissal of all claims against it. (D.I. 39).

(D.I. 80 at 7-11). U-Haul’s opening brief cited one Massachusetts statute and one Massachusetts case. (D.I. 68 at 12-13). U-Haul’s reply brief cites an additional Massachusetts statute and three additional Massachusetts cases. (D.I. 79 at 5-6). II. LEGAL STANDARD Rule 8 requires a complainant to provide “‘a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). Rule 12(b)(6) allows the accused party to bring a motion to dismiss the claim for failing to meet this standard. A Rule 12(b)(6) motion may be granted only if, accepting the well-pleaded allegations in the complaint as true and viewing them in the light most favorable to the complainant, a court concludes that those allegations “could not raise a claim of entitlement to relief.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 558 (2007). The factual allegations do not have to be detailed, but they must provide more than labels, conclusions, or a “formulaic recitation” of the claim elements. Jd. at 555 (“Factual allegations must be enough to raise a right to relief above the speculative level . . . on the assumption that all the allegations in the complaint are true (even if doubtful in fact).”). Moreover, there must be sufficient factual matter to state a facially plausible claim to relief. Ashcroft v. Igbal, 556 U.S. 662, 678 (2009). The facial plausibility standard is satisfied when the complaint’s factual content “allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Jd, (“Where a complaint pleads facts that are merely consistent with a defendant’s liability, it stops short of the line between possibility and plausibility of entitlement to relief.” (internal quotation marks omitted)). A defendant may raise a statute of limitations defense under Rule 12(b)(6) “only if the time alleged in the statement of a claim shows that the cause of action has not been brought within the

statute of limitations.” Schmidt v. Skolas, 770 F.3d 241, 249 (3d Cir. 2014) (cleaned up). However, “if the bar is not apparent on the face of the complaint, then it may not afford the basis for a dismissal of the complaint under Rule 12(b)(6).” Jd. (cleaned up). Ill. DISCUSSION I hold that: (1) Delaware law applies to Street Retail’s negligence claims; (2) Massachusetts law applies to Street Retail’s breach of implied warranties claims; and (3) neither set of claims is time-barred. A. Street Retail’s Negligence Claims Are Not Time-Barred Under Delaware’s Statute of □ Limitations Because the Cause of Action Accrued when the Fire Occurred. Street Retail claims that Defendants were negligent. It alleges that Curt was negligent because it defectively designed the tow hitch, and that both Curt and U-Haul were negligent because they failed to test and inspect the tow hitch adequately, failed to implement a proper recall of the tow hitch, and failed to issue an adequate post-sale warning about the tow hitch’s fire hazards. (D.I. 1-1 at 6, 8 of 14). With respect to the Benzigers, Street Retail alleges that each “knew or should have known that the vehicle’s tow hitch wiring had been recalled” and that each was “negligent by failing to complete the recall service on the tow hitch wiring.” (/d. at 9-10 of 14). The first issue is whether Delaware or Massachusetts law applies. Curt and U-Haul argue that Delaware law applies. (D.I. 65 at 8, D.I. 68 at 11). Street Retail maintains that Massachusetts and Delaware law reach the same result, and there is thus no need for a conflict of laws analysis. (D.I. 74 at 2-4, 9). Under the circumstances, I apply Delaware law. The relevant Delaware statute of limitations provides, “[N]o action to recover damages caused by an injury unaccompanied with

force or resulting indirectly from the act of the defendant shall be brought after the expiration of 3 years from the accruing of the cause of such action.” 10 Del. C. § 8106.3 The second issue is when the cause of action accrues under the statute. According to Curt and U-Haul, tort actions under 10 Del. C. § 8106 accrue at the time the wrongful act occurs. (D.I. 65 at 8; D.I. 79 at 3). That would be “prior to or during the manufacturing process of the Tow Hitch, the time of its tender of delivery to U-Haul or at the latest the recall issued in 2011”—all of which occurred more than three years before Street Retail filed suit and would therefore be time- barred. (D.I. 65 at 9). According to Street Retail, the action accrues at the time of injury. (D.I. 74 at 3). The injury would be when the fire occurred, which was less than three years before Street Retail filed suit, which would therefore not be time-barred. (/d.).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Saudi Basic Industries Corp. v. Mobil Yanbu Petrochemical Co.
866 A.2d 1 (Supreme Court of Delaware, 2005)
S&R Associates, L.P. v. Shell Oil Co.
725 A.2d 431 (Superior Court of Delaware, 1998)
Ontario Hydro v. Zallea Systems, Inc.
569 F. Supp. 1261 (D. Delaware, 1983)
Dillon v. General Motors Corporation
315 A.2d 732 (Superior Court of Delaware, 1974)
Bay State-Spray & Provincetown Steamship, Inc. v. Caterpillar Tractor Co.
533 N.E.2d 1350 (Massachusetts Supreme Judicial Court, 1989)
Nardo v. Guido DeAscanis & Sons, Inc.
254 A.2d 254 (Superior Court of Delaware, 1969)
Plumb v. Cottle
492 F. Supp. 1330 (D. Delaware, 1980)
Kaufman v. C.L. McCabe & Sons, Inc.
603 A.2d 831 (Supreme Court of Delaware, 1992)
Sebago, Inc. v. Beazer East, Inc.
18 F. Supp. 2d 70 (D. Massachusetts, 1998)
Alan Schmidt v. John Skolas
770 F.3d 241 (Third Circuit, 2014)
Jacobs v. Yamaha Motor Corp., U.S.A.
649 N.E.2d 758 (Massachusetts Supreme Judicial Court, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
Street Retail LLC v. U-Haul International, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/street-retail-llc-v-u-haul-international-inc-ded-2025.