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81 So. 3d 320
Ala.
2011
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Background

  • Plaintiffs sue American Suzuki and local dealers for breach of warranty, diminution in value, fraudulent misrepresentation, and unjust enrichment, seeking class relief.
  • Alleged that closing of North Alabama Suzuki dealerships in March 2009 left no nearby warranty service, effectively barring plaintiffs from warranty work.
  • American Suzuki later formed a warranty-service-provider agreement with Bentley Auto in Madison County (April 2009) for warranty service at Bentley Hyundai.
  • American Suzuki moved to dismiss under Rule 12(b)(1) or 12(b)(6); plaintiffs did not respond to the motion.
  • Trial court conducted a hearing and denied the motion to dismiss on July 7, 2009; mandamus petition was filed and treated as a petition for permission to appeal.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether constructive breach of warranty is cognizable Plaintiffs rely on constructive breach of warranty as a theory. Defendants contend constructive breach is not a cognizable theory. Constructive breach of warranty not cognizable
Whether plaintiffs stated a cognizable claim under Rule 12(b)(6) Allege breach and related claims based on warranty service failures. No recognized legal theory; no actual denial or request for warranty service alleged. No cognizable legal theory pleaded; dismissal appropriate
Accrual/ Timing of warranty breach claim Breach occurs when warranties require service and is hindered by closure of dealerships. Not alleged that plaintiffs sought or were denied service; accrual not established. Accrual not established; failure to plead a claim
Abuse of mandamus / jurisdiction to review Denial of dismissal is mandatorily reviewable under mandamus. Denial of dismissal generally not reviewable; exceptions apply only to immunity matters. Petitions treated as Rule 5 permission to appeal; mandamus granted to reverse

Key Cases Cited

  • Ex parte Haralson, 853 So.2d 928 (Ala. 2003) (denial of motion to dismiss reviewability and immunity exception)
  • Ex parte Liberty Nat’l Life Ins. Co., 825 So.2d 758 (Ala. 2002) (immunity exception to mandamus review)
  • Conseco Fin. Corp. v. Sharman, 828 So.2d 890 (Ala. 2001) (need for Rule 5 permission to appeal for denial of Rule 12(b)(6) motion)
  • Robinson v. Computer Servicenters, Inc., 360 So.2d 299 (Ala. 1978) (dismissal standards and interlocutory appeal framework)
  • Nance v. Matthews, 622 So.2d 297 (Ala. 1993) (pleading standard for cognizable legal theory under Rule 12(b)(6))
  • Brown v. General Motors Corp., 14 So.3d 104 (Ala. 2009) (breach of repair warranty accrues at failure to repair)
  • Fontenot v. Bramlett, 470 So.2d 669 (Ala. 1985) (pleading to avoid dismissal: cognizable theory required)
  • Rice v. United Ins. Co. of America, 465 So.2d 1100 (Ala. 1984) (test for whether pleaded facts support a cognizable theory)
  • Shandong Yinguang Chem. Indus. Joint Stock Co., Ltd. v. Potter, 607 F.3d 1029 (5th Cir. 2010) (plaintiff must plead a plausible cognizable claim)
  • Ashcroft v. Iqbal, 556 U.S. 662 (U.S. 2009) (plausibility standard for 12(b)(6) dismissals)
  • Tompkins v. United Healthcare of New England, Inc., 203 F.3d 90 (1st Cir. 2000) (survival of complaint requires sufficient facts to warrant recovery on cognizable theory)
  • Rice v. United Ins. Co. of America, 465 So.2d 1100 (Ala. 1984) (cognizable theory required for relief)
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Case Details

Case Name: American Suzuki Motor Corporation v. John Burns and Jill S. Hearn.
Court Name: Supreme Court of Alabama
Date Published: Sep 23, 2011
Citations: 81 So. 3d 320; 2011 Ala. LEXIS 159; 2011 WL 4425556; 1081605
Docket Number: 1081605
Court Abbreviation: Ala.
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