Valencia v. Volkswagen Group of America Inc.

119 F. Supp. 3d 1130, 2015 U.S. Dist. LEXIS 105555, 2015 WL 4747533
CourtDistrict Court, N.D. California
DecidedAugust 11, 2015
DocketCase No. 15-cv-00887-HSG
StatusPublished
Cited by8 cases

This text of 119 F. Supp. 3d 1130 (Valencia v. Volkswagen Group of America Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Valencia v. Volkswagen Group of America Inc., 119 F. Supp. 3d 1130, 2015 U.S. Dist. LEXIS 105555, 2015 WL 4747533 (N.D. Cal. 2015).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS

HAYWOOD S. GILLIAM, JR., United States District Judge

Plaintiffs Ernesto Valencia, Adelina Duncan, Lorenzo Sava, Michelle Savage, Margarito De La Rosa, and Lenelyn De La Rosa-assert claims under the California’s Unfair Competition Law (“UCL”) and California’s Legal Remedies Act (“CLRA”), Breach of Implied Warranty under the Song-Beverly Consumer Warranty Act and the Magnuson-Moss Warranty Act, as well as for Unjust Enrichment, against Defendant Volkswagen Group of America, Inc. (“Volkswagen”). Plaintiffs’ claims arise from their purchase of 2009 through 2012 model year Volkswagen Routans, which they allege were manufactured with defective and dangerous brakes. On April 27, 2015, Volkswagen moved to dismiss each of Plaintiffs’ claims pursuant to Federal Rule of Civil Procedure 12(b)(6). Dkt. No. 23 (“Mot.”). Plaintiffs opposed that motion on May 27, 2015, Dkt. No. 36 (“Opp.”), and Volkswagen filed a reply on June 15, 2015, Dkt. No. 39 (“Reply”). The Court held a hearing on the motion on June 25, 2015.

[1134]*1134The Court has carefully considered the arguments offered by the parties, both in their written submissions and during oral argument. For the reasons set forth below, the motion to dismiss is GRANTED IN PART AND DENIED IN PART.

I. BACKGROUND

Plaintiffs bring this action individually and on behalf of similarly situated individuals in the United States' who purchased or leased a 2009 through 2012 model year Volkswagen Routan. See First Amended Complaint (“FAC”) ¶ 118. Plaintiffs allege that Routan minivans were sold with defective brakes that “fail[ed] to adequately handle the braking duties required by vehicles the size and weight of the [Routan], thereby1 leading to abnormal, premature wear of the braking system’s components” (the “braking defect”), id. ¶ 76, and that Volkswagen knew of the braking defect and failed to inform consumers, id. ¶77. Plaintiffs further allege that the braking defect poses a material safety risk- because it causes “shaking and shuddering which can be felt through the brake pedal, floor, and steering wheel [which] severely affect the driver’s .ability to control , the car’s speed and deceleration.” Id. ¶ 78.

Ernesto Valencia and’ Adelina Duncan purchased a new 2011 Routan on September 24, -2011. FAC ¶'30. Valencia and Duncan notieéd “symptoms” of the braking defect, including a grinding noise, “within approximately” the first year of their -purchase. Id. ¶34. Plaintiffs continued-to experience grinding noises while braking and replaced their brakes on December 23, 2012, id. ¶ 35, September 20, 2013, id. ¶ 36, January 3, 2014, id. ¶ 37, July 7,: 2014, id. ¶ 38, and October 18,2014, id. ¶ 39. , .

Lorenzo and Michele Savage purchased a certified pre-owned - 2011 Routan on March 7, 2012. FAC ¶ 43. Around March 14, 2013, the Savages were informed by a Volkswagen service advisor that the rear brake pads, rear brake rotors, and front brake pads on their vehicle would need to be replaced. Id. ¶47. The Savages replaced the brake pads again on December 31, 2013, id, ¶48, February 20, 2014, id. ¶ 49, and December 2, 2014, id. ¶ 50.

Margarito and Lenelyn De La Rosa purchased. a new 2010. Routan on May 24, 2010. FAC ¶ 54. On July 13,- 2011, the De -La Rosas took their Routan to an authorized Volkswagen dealer complaining that the brakes were pulsating and the rear rotors were badly grooved. Id. ¶ 58. The dealership replaced the rear brake pads and discs under Plaintiffs’ warranty. Id. On April 29, 2013, Plaintiffs returned to the dealership, complaining that the vehicle was “shimmying and vibrating while braking.” Id. ¶ 59. The service advisor informed them that the brake rotors were “out of round” and needed to be replaced again. Id. Plaintiffs took the vehicle back to the dealership on September 13, 2014 complaining of “shimmying and squeaking while braking” and were told that their brakes would again need to be replaced. Id. ¶ 60. '

II. LEGAL STANDARD

A court may dismiss a complaint under Federal Rule of Civil'Procedure 12(b)(6) when it does not contain sufficient facts to state a plausible claim on its face. See Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). “A claim has facial-,plausibility when the 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, 129 S.Ct. 1937, 173. L.Ed.2d 868 (2009). “The plausibility standard is not akin to a ‘probability requirement,’ but it asks for more than a sheer possibility-that a defendant has acted unlawfully.” Id. (quoting Twombly, 550 [1135]*1135U.S. at 557, 127 S.Ct. 1955). “While a complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations, a plaintiffs obligation to provide the ‘grounds’ of his ‘entitle[ment] to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do. Factual allegations must be enough-to raise a right to relief above the speculative level.” Twombly, 550 U.S. at 555, 127 S.Ct. 1955 (internal citations and paren-theticals omitted).

In considering a motion to dismiss, a court must accept the plaintiffs factual allegations as true and construe them in the light most favorable to the plaintiff. See Moore v. Kayport Package Exp., Inc., 885 F.2d 531, 550 (9th Cir.1989). However, “the tenet that a court must accept a complaint’s allegations as true is inapplicable to threadbare recitals of a cause of action’s elements, supported by mere con-clusory statements.” Iqbal, 556 U.S. at 678, 129 S.Ct. 1937. If the Court dismisses the complaint, it will generally grant leave to amend “unless it determines that the pleading could not possibly be cured by the allegation of other facts.” Lopez v. Smith, 203 F.3d 1122, 1127 (9th Cir.2000) (citation- omitted). When a party repeatedly fails to cure deficiencies, however, the court may order dismissal without leave to amend. See Ferdik v. Bonzelet, 963 F.2d 1258, 1261 (9th Cir.1992).

III. DISCUSSION

Volkswagen moves to dismiss each of Plaintiffs’- claims for failure to state a claim upon which relief can be granted. The Court will address each argument in turn.

A. Duty to Disclose

To state an actionable claim under the CLRA or the UCL arising out of an omission, Plaintiffs must sufficiently plead that the defendant had a duty to disclose the information omitted. See Daugherty v. Am. Honda Motor Co., 144 Cal.App.4th 824, 835, 51 Cal.Rptr.3d 118, 126 (2006), as modified (Nov. 8, 2006) (“[Although a claim may be stated under the CLRA in terms constituting fraudulent omissions, to be actionable the omission must be contrary to a representation actually made by the defendant, or an omission of a fact the defendant was obliged to disclose.”); id.

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Bluebook (online)
119 F. Supp. 3d 1130, 2015 U.S. Dist. LEXIS 105555, 2015 WL 4747533, Counsel Stack Legal Research, https://law.counselstack.com/opinion/valencia-v-volkswagen-group-of-america-inc-cand-2015.