Beck v. FCA US LLC
273 F. Supp. 3d 735
E.D. Mich.2017Background
- Plaintiff Donald Beck, a California resident, sued FCA US LLC on behalf of owners/lessees of 2013–2016 Ram 1500 and 2014–2016 Durango vehicles alleging a defective "rotary" shift-by-wire system that can indicate "P" (Park) when the vehicle is not actually in Park, leading to rollaway incidents.
- Beck alleged two defect theories: (1) the rotary shifter can falsely indicate Park, and (2) the vehicles lack an automatic safety-override ("auto-park") that would shift to Park or engage parking brake when exiting the vehicle.
- Beck experienced a rollaway with his 2015 Ram 1500 and cited NHTSA complaints and a preliminary NHTSA evaluation noting rollaway reports; he seeks only economic damages (benefit-of-the-bargain and diminished value), excluding personal-injury claims.
- Beck asserted claims under the MMWA, California UCL, CLRA, fraudulent concealment, breach of express and implied warranties, and the Song-Beverly Act.
- FCA moved to dismiss under Fed. R. Civ. P. 12(b)(1) (standing) and 12(b)(6) (failure to state a claim); the Court granted the motion and dismissed the complaint with prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing for theory that defect is failure to include auto-park safety-override | Beck asserted injury from lack of an auto-park feature because vehicles are unsafe without it | FCA: Beck lacks concrete, particularized injury because he did not bargain for or pay for such a feature | Court: No Article III standing for this distinct theory; jurisdiction lacking as Beck did not allege injury tied to absence of that bargained-for feature |
| CLRA pre-suit notice requirement | Beck argued he provided notice post-filing and that subsequent notice suffices | FCA: CLRA requires certified/registered notice at least 30 days before suit for damages claims | Court: Post-filing notice insufficient; CLRA damages claim dismissed |
| UCL/affirmative misrepresentations (reliance on safety/reliability advertising) | Beck relied on FCA statements about safety, "rigorous testing," and advanced safety tech | FCA: Such generalized safety/quality claims are non-actionable puffery | Court: Statements about general safety, reliability, and "rigorous testing" are puffery and not actionable; UCL misrepresentation claim dismissed |
| Warranty claims (express, implied, Song-Beverly, MMWA) | Beck alleged express and implied breaches and MMWA relief tied to state warranty claims | FCA: Beck failed to present vehicle for warranty repair (express), lacks privity for implied warranty (vertical privity), and did not satisfy pre-suit notice for warranties | Court: Express warranty claims dismissed for failure to present vehicle for repair; implied warranty claims dismissed (plaintiff still using vehicle and not alleging abandonment); third-party buyer exception treated as adequately pled but claims still fail; MMWA claim fails because state warranty claims fail |
Key Cases Cited
- Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (U.S. 2016) (Article III standing requires concrete and particularized injury)
- Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (U.S. 2007) (complaint must state a plausible claim to survive 12(b)(6))
- Ashcroft v. Iqbal, 556 U.S. 662 (U.S. 2009) (plausibility standard and pleading principles)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (U.S. 1992) (plaintiff bears burden to establish standing)
- Wilson v. Hewlett-Packard Co., 668 F.3d 1136 (9th Cir. 2012) (duty to disclose and partial-representation theory under California law)
- Birdsong v. Apple, Inc., 590 F.3d 955 (9th Cir. 2009) (benefit-of-the-bargain theory insufficient where plaintiff did not bargain for alleged safety feature)
- Clemens v. DaimlerChrysler Corp., 534 F.3d 1017 (9th Cir. 2008) (vertical privity requirement for implied warranty under California law)
- Daniel v. Ford Motor Co., 806 F.3d 1217 (9th Cir. 2015) (latent defects: implied warranty duration rule does not bar discovery of latent defects discovered after one-year implied warranty period)