Yung Kim v. General Motors, LLC

99 F. Supp. 3d 1096, 2015 WL 1668366
CourtDistrict Court, C.D. California
DecidedMarch 9, 2015
DocketNo. CV 11-06459 GAF (MRWx)
StatusPublished

This text of 99 F. Supp. 3d 1096 (Yung Kim v. General Motors, LLC) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yung Kim v. General Motors, LLC, 99 F. Supp. 3d 1096, 2015 WL 1668366 (C.D. Cal. 2015).

Opinion

GARY ALLEN FEESS, Judge.

Renee Fisher, Deputy Clerk.

I.

INTRODUCTION

Plaintiff Yung Kim brings this putative class action against Defendant General Motors, LLC (“GM”), alleging that GM engaged in a systematic and misleading advertising scheme in which EPA estimated mileage figures and numbers derived from these figures were represented as “actual, expected mileage under normal, real world driving conditions.” (Docket No. 4, First Am. Compl. (“FAC”) ¶ 25.) Earn brings a number of state law claims, including for violations of California’s consumer protection and unfair competition laws, and for fraud. (Id. ¶¶ 39-68.) GM now moves, under Federal Rule of Civil Procedure 12(b)(6), to dismiss Plaintiffs amended complaint. (Docket No. 7.) For the reasons that follow, the Court concludes that the motion should be GRANTED in part and DENIED in part.

II.

BACKGROUND

Plaintiff purchased a new, 2011 GMC Terrain crossover vehicle (“Terrain”) on or about January 3, 2011, at a California GM dealership. (FAC ¶ 9.) Prior to his purchase, Plaintiff had viewed television commercials and print advertisements about the Terrain, read about the vehicle in various magazines, visited GM’s website, and on several occasions visited the dealership where he was provided with brochures and information about the vehicle. (Id. ¶¶ 10-11.) Plaintiff was impressed with the “high gas mileage that the materials advertised the Terrain would achieve,” and alleges that he was led, due to the nature of these advertisements, to believe that they were reflective of the mileage he would receive during “normal, real-world highway use.” (Id. ¶ 11.)

Plaintiff cites three such representations or advertisements that led him to this belief. (Id.) The first, entitled “Going the Extra Mile to Make the Most Out of Every Inch,” is from the 2011 Terrain’s brochure. (Id.; FAC, Exs. 1-2.) The brochure states that the Terrain “has the best highway fuel economy in its class at 32 highway miles per gallon” and includes a chart with the language “UP TO 600 HWY Miles.” (Id.) Next to this chart is a map outlining a route from Chicago, past Cleveland and Buffalo, to Rochester, New York, which Plaintiff alleges is more than a 600 mile trip. (Id.) The brochure also states [1100]*1100that “the Terrain offers class-leading highway fuel economy without sacrificing performance .... [The] Terrain offers 32 EPA-estimated highway miles per gallon, and can go up to 600 highway miles on a single tank of gas.” (Id.)

Second, Plaintiff cites another page of the 2011 Terrain brochure, where GM states that “AT 32 HIGHWAY MILES PER GALLON, WE GAVE IT BETTER FUEL ECONOMY THAN ANY SUV OR CROSSOVER,” with the words “EPA estimated” in a fine print footnote. (Id. ¶ 11; FAC, Ex. 4.)

Third, Plaintiff cites to an advertisement from Road & Track magazine, which states “32 HWY MPG RATED, AVAILABLE POWER LIFTGATE, SEATING FOR 5 ADULTS. WE PROBABLY HAD YOU AT 32 MPG,” and similarly relegates the words “EPA estimate” to a footnote. (Id. ¶ 11; FAC, Ex. 3.)

Plaintiff alleges that in light of these advertisements, he “reasonably believed that the Terrain would achieve approximately 32 miles per gallon and travel 600 miles on a single tank of gas during normal, real-world highway use,” and that he therefore “heavily relied” on these representations in making his decision to buy the Terrain. (Id. ¶¶ 12-13.) However, after purchasing the vehicle, Kim “discovered that it consistently achieved gas mileage far below the advertised mileage under normal, real-world use,” and that it “does not travel 600 miles on one tank of gas_” (Id. ¶¶ Í5-16.) Despite efforts to resolve the issue with the dealership, Kim was unable to achieve higher gas mileage. (Id. ¶ 14.)

Plaintiff cites to two additional statements and advertisements that, while not affecting his decision to purchase the vehicle, could reasonably have misled other members of the purported class. (Id. ¶ 26.) Plaintiff first points to a press release from June 1, 2011, entitled “May U.S. Retail Sales Rise 9 Percent on Demand for Fuel-Efficient Vehicles.” (Id.) In reference to the Terrain and Chevrolet Equinox (“Equinox”), Don Johnson, GM’s Vice President of United States Sales Operations, is quoted as saying that “[e]us-tomers love the 610-mile range that our compact crossovers provide and they get it without sacrificing capability or style.” (Id.) Plaintiff also describes GM’s Chevrolet website for its “Equinox” vehicle, which states that “[m]eticulous craftsmanship ... and class-leading highway fuel economy (5, 6) sets Equinox apart from the rest. With 32 MPG highway and a highway driving range of up to 600 miles....” (Id.) The only mention of an “EPA estimate” is found in a footnote in reference to “class-leading highway fuel economy,” not “32 MPG highway,” and, in order to view the footnote, the user must drag the mouse over the text entitled “view additional disclosures” at the bottom of the web page. (Id.) Finally, Plaintiff notes that a number of these advertisements do not disclose that the actual real world mileage “will vary.” (Id.)

On the basis of these facts, Kim asserts six state law causes of action, for [1] violations of California Business & Professions Code section 17200 (“Unfair Competition Law” or “UCL”); [2] violations of Business & Professions Code section 17500 (“False Advertising Law” or “FAL”); [3] violations of California Civil Code section 1750 (“Consumer Legal Remedies Act” or “CLRA”); [4] fraud; [5] negligent misrepresentation; and [6] deceit, in violation of California Civil Code section 1710. (FAC ¶¶ 39-68.)

Defendant now moves to have the complaint dismissed, contending that Plaintiffs claims are preempted by federal law, and/or that they are inadequately pleaded. (Docket No. 8, Mem.) Although the parties often discuss the various misrepresenta[1101]*1101tions interchangeably, for purposes of this motion the Court separates the purportedly false advertisements into three categories: [1] those that Plaintiff alleges do not adequately disclose the “EPA estimate” language; [2] those that fail to include the language “actual mileage will vary”; and [3] those that make representations concerning the vehicle’s tank range, in particular the advertisement displaying a map outlining a route from Chicago to Rochester. With this framework in mind, the Court addresses Defendant’s contentions in turn.

III.

DISCUSSION

A. Legal standards Under Rules 12(b)(6) and 9(b)

A complaint may be dismissed if it fails to state a claim upon which relief can be granted. See Fed.R.Civ.P. 12(b)(6). On a motion to dismiss under Federal Rule of Civil Procedure (“F.R.C.P.”) 12(b)(6), a court must accept as true all factual allegations pleaded in the complaint, and construe them “in the light most favorable to the nonmoving party.” Cahill v. Liberty Mut. Ins. Co., 80 F.3d 336

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

Related

Shaw v. Delta Air Lines, Inc.
463 U.S. 85 (Supreme Court, 1983)
English v. General Electric Co.
496 U.S. 72 (Supreme Court, 1990)
United States v. Locke
529 U.S. 89 (Supreme Court, 2000)
Geier v. American Honda Motor Co.
529 U.S. 861 (Supreme Court, 2000)
Lorillard Tobacco Co. v. Reilly
533 U.S. 525 (Supreme Court, 2001)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Robert S. Robertson v. Dean Witter Reynolds, Inc.
749 F.2d 530 (Ninth Circuit, 1984)
Stoner v. Santa Clara County Office of Education
502 F.3d 1116 (Ninth Circuit, 2007)
Williams Ex Rel. Tabiu v. Gerber Products Co.
523 F.3d 934 (Ninth Circuit, 2008)
True v. American Honda Motor Co., Inc.
520 F. Supp. 2d 1175 (C.D. California, 2007)
Rubke v. Capitol Bancorp Ltd.
551 F.3d 1156 (Ninth Circuit, 2009)
Haskell v. Time, Inc.
857 F. Supp. 1392 (E.D. California, 1994)
Paduano v. American Honda Motor Co., Inc.
169 Cal. App. 4th 1453 (California Court of Appeal, 2009)
Consumer Advocates v. Echostar Satellite Corp.
8 Cal. Rptr. 3d 22 (California Court of Appeal, 2003)
Lavie v. Procter & Gamble Co.
129 Cal. Rptr. 2d 486 (California Court of Appeal, 2003)
Sprewell v. Golden State Warriors
266 F.3d 979 (Ninth Circuit, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
99 F. Supp. 3d 1096, 2015 WL 1668366, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yung-kim-v-general-motors-llc-cacd-2015.