Talley v. General Motors, LLC

CourtDistrict Court, D. Delaware
DecidedNovember 26, 2021
Docket1:20-cv-01137
StatusUnknown

This text of Talley v. General Motors, LLC (Talley v. General Motors, LLC) 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
Talley v. General Motors, LLC, (D. Del. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

CHRIS TALLEY, MARIE FRANZEN, JESSICA LOADHOLTES, ROBERT LOADHOLTES, MARK PREVITI, LEE ANN MILLER, CORY SEALE, AND DAMION HARRIS, individually and on behalf of all others similarly situated

No. 1:20-cv-01137-SB Plaintiffs,

v.

GENERAL MOTORS, LLC,

Defendant.

Russell D. Paul, Amey J. Park, Abigail J. Gertner, BERGER MONTAGUE PC, Philadelphia, Pennsylvania; Tarek H. Zohdy, Cody R. Padgett, CAPSTONE LAW APC, Los Angeles California.

Counsel for Plaintiffs.

Oderah C. Nwaeze, FAEGRE DRINKER BIDDLE & REATH LLP, Philadelphia, Pennsylvania; Christine W. Chen, Crystal Nix-Hines, Shon Morgan, Meredith R. Mandell, QUINN EMANUEL URQUHART & SULLIVAN, LLP, Los Angeles, California.

Counsel for Defendant.

MEMORANDUM OPINION November 26, 2021 BIBAS, Circuit Judge, sitting by designation. Plaintiffs hail from five different states. But they are united as buyers of 2016 or 2017 Chevrolet Camaros. And they are not pleased about it. Those cars, they allege,

have defective starter motors. The drivers sue General Motors, which owns Chevrolet. They claim that when GM supplied defective Camaros it breached express and implied warranties, violated countless consumer-protection laws, and was unjustly enriched. And they bring these claims in a class action on behalf of other Camaro owners. GM contests almost everything the drivers say. It has moved to dismiss every

claim and to strike the class allegations. Sometimes GM is right. The drivers sue under a federal law that requires 100 plaintiffs, but they muster only eight. And a few drivers took too long to sue. Still others failed to get repairs within the warranty period. Plus, GM is right that applying the unjust-enrichment laws of fifty states would be too unwieldy. So I will dismiss and strike some of the claims. I. BACKGROUND A. The starter defect

When turned, a car key triggers the starter motor, which engages the car’s engine. Because the starter is so close to the engine, it can absorb a lot of heat. First Am. Compl., D.I. 22 ¶ 112. That can cause the starter to fail. Id. To prevent this, manufac- turers install heat shields. Id. ¶¶ 113, 121. The drivers say that every Camaro since model year 2010 has a defective heat shield. Id. ¶¶ 116, 121–25. As a result, they claim, their starters are exposed to exces- sive heat, damaging them and other important parts. Id. ¶¶ 114–16. The drivers call this problem “the starter defect.” So will I, sparing the reader words like “solenoid,” “flywheel,” and “pinion gear.” Id. ¶¶ 109–10. The drivers say that the starter defect makes their cars unsafe. Id. ¶ 118. They

say it can cause their cars to start slowly, not start at all, or stall mid-drive. Id. What- ever the flaw, the drivers say the defect makes them “more likely to be involved in a collision because the vehicle cannot move on its own.” Id. The drivers say this problem is so common that GM drafted a document instruct- ing dealerships on “the replacement of the starter … due to heat damage from the engine.” Id. ¶ 131. Plus, some dealerships admitted that they were “aware” of the

starter defect. Id. ¶ 143. B. The drivers and their claims Distressed by their mounting repair bills, the drivers bring a class action against GM. Eight named plaintiffs sue under the laws of five states: • Talley (Maryland); • Previti and Franzen (California); • the Loadholteses and Seale (Florida);

• Harris (Georgia); and • Miller (Pennsylvania). Because the drivers allege a violation of federal law, they also sue on behalf of every- one in the United States who bought or leased a post-2010 Camaro. The drivers allege that GM violated a raft of federal and state consumer-protection laws, breached the warranties (express and implied) that came with their cars, and unjustly enriched itself by selling cars that it knew were defective.

GM moves to dismiss these claims and to strike the class allegations. To decide these motions, I take every factual assertion in the complaint as true. Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). II. MOST OF THE CONSUMER-PROTECTION CLAIMS SURVIVE The drivers assert that GM violated a legion of state laws banning unfair or de- ceptive trade practices. See, e.g., Fla. Stat. § 501.204(1). They say those laws required GM to tell consumers about the starter defect. GM parries with five arguments:

• It had no duty to disclose the starter defect, D.I. 24, at 6; • the drivers never pleaded an affirmative act of concealment beyond “mere si- lence,” id.; • the drivers never pleaded that GM knew of the starter defect, id.; • the drivers never pleaded that they relied on GM’s alleged omission, id. at 9; and

• some of the drivers’ claims are time-barred, id. at 10. The first four fail; the last succeeds in part. A. The drivers plausibly pleaded that GM had a duty to disclose GM says that it had no duty to disclose the starter defect. But each state’s law says otherwise. In Maryland, “vehicle manufacturers [must] report vehicle or equipment defects.” Doll v. Ford Motor Co., 814 F. Supp. 2d 526, 537 (D. Md. 2011); see Md. Code Ann., Com. Law § 13-301(9).

GM fares no better under California law. In California, it had a duty to disclose if it had “exclusive knowledge of material facts not known or reasonably accessible to the plaintiff[s].” Gutierrez v. Carmax Auto Superstores Cal., 248 Cal. Rptr. 3d 61, 84 (Ct. App. 2018). The drivers plead that GM knew about the starter defect. And the starter defect is material since it plausibly poses safety concerns. Plus, knowledge of the starter defect is not “reasonably accessible” to drivers. Id. How many could know

about solenoids, pinion gears, electromagnets, and heat shields? Georgia and Pennsylvania laws mirror California’s, so the drivers’ claims survive there too. McCabe v. Daimler AG, 948 F. Supp. 2d 1347, 1368 (N.D. Ga. 2013); Zwier- can v. GMC, 58 Pa. D. & C. 4th 251, 259 (Phila. Ct. Com. Pl. Sept. 11, 2002). And Florida law reaches the same conclusion. In Florida, a manufacturer may not “knowingly fail[] to disclose a material defect that diminishes a product’s value.” Mat- thews v. Am. Honda Motor Co., 2012 WL 2520675, at *3 (S.D. Fla. June 6, 2012). As

I rule below, the drivers plausibly pleaded that GM knew about the starter defect. That defect is material because it concerns the Camaro’s safety. And a car that strug- gles (and sometimes fails) to start is worth less than one that does not. Id. So this line of attack fails. B. The drivers need not plead acts beyond mere silence to state con- sumer protection claims GM says a “deceptive omission” requires “a cover-up or affirmative act that is more than mere silence.” D.I. 24, at 6 (internal quotation marks omitted). Yet many states require only omission. Where more is required, the drivers have pleaded enough. Maryland law forbids mere “omission of any material fact.” Md. Code Ann., Com. Law § 13-301(9) (emphasis added); accord Singh v. Lenovo (United States) Inc., 510

F. Supp. 3d 310, 326–27 (D. Md. 2021). Likewise, in Georgia, Florida, and Pennsylvania mere nondisclosure is enough. See, e.g., McCabe v. Daimler AG, 948 F. Supp. 2d 1347, 1368 (N.D. Ga. 2013); Gavron v. Weather Shield Mfg., 819 F. Supp. 2d 1297, 1302 (S.D. Fla. 2011); In re Passarelli Family Tr., 242 A.3d 1257, 1270 (Pa. 2020).

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