81 So. 3d 320
Ala.2011Background
- 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)
