Clemons v. Nissan North America, Inc.
997 N.E.2d 307
Ill. App. Ct.2013Background
- Clemons purchased a used 2007 Nissan Pathfinder from New York Auto Sales with about 12,800 miles for $27,690 and later experienced multiple mechanical issues.
- Nissan North America, Inc. issued a written limited warranty on new vehicles, but plaintiff alleges the Pathfinder was still under Nissan’s warranty despite the dealer’s actions.
- Nissan moved to dismiss in June 2012 under 2-619 alleging the dealer’s “as is” disclaimer extinguished Nissan’s warranty; the trial court granted it in July 2012.
- Plaintiff argued the dealer could not displace Nissan’s warranty, and Nissan’s reliance on a nonaffiliated dealer’s disclaimer was improper.
- Discovery revealed two Buyers Guide documents and a signed sales contract indicating the vehicle was sold “as is” with no warranty, though the contract language conflicted with Nissan’s warranty terms.
- The appellate court reversed and remanded, holding that a third party can disclaim a manufacturer’s written warranty only under certain conditions and that the trial court failed to properly assess the warranty/agency issues and the Act’s protections.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an “as is” disclaimer by a third party can extinguish Nissan’s written warranty | Clemons argues New York Auto’s as-is clause cannot void Nissan’s written warranty. | Nissan contends the dealer’s as-is language disclaims warranties and extinguishes Nissan’s obligations. | No; third-party as-is disclaimer cannot void a manufacturer’s written warranty. |
| Whether Nissan’s warranty can be enforced if a third party disclaims it | Clemons asserts Nissan’s warranty remains enforceable despite dealer disclaimer. | Nissan argues the disclaimer by the dealer destroys the basis of the bargain. | Warranties cannot be disclaimed by a third party in this context; the manufacturer’s written warranty remains enforceable. |
| Whether the trial court properly evaluated the 2-619 motion and rule 191 requirements | Clemons argues the motion was untimely and not properly supported by affidavits. | Nissan contends the motion was proper under 2-619 and the evidence supported dismissal. | The motion was improper and not adequately supported; it should be denied or treated as appropriate. |
| Whether Nissan’s interpretation of the Act and UCC is correct | Clemons argues the Act prohibits disallowing a written warranty via third-party disclaimers. | Nissan contends the as-is clause can validly disclaim warranties. | The Act and UCC do not permit third-party disclaimers to void a manufacturer’s written warranty. |
Key Cases Cited
- Basselen v. General Motors Corp., 341 Ill. App. 3d 278 (2003) (dealer disclaimer of implied warranty did not bar manufacturer’s warranty in that context (limited value))
- Mitsch v. General Motors Corp., 359 Ill. App. 3d 99 (2005) (Uniform Commercial Code conspicuousness requirement for disclaimer)
- Tague v. Autobarn Motors, Ltd., 394 Ill. App. 3d 268 (2009) (dealer disclaimer of implied warranties; issue of timing of warranty in play)
- Mitsch v. General Motors Corp., 359 Ill. App. 3d 99 (2005) (see above)
- Lytle v. Roto Lincoln Mercury & Subaru, Inc., 167 Ill. App. 3d 508 (1988) (waiver of implied warranty; dealer disclaimers not extending to manufacturer)
- Priebe v. Autobarn, Ltd., 240 F.3d 584 (7th Cir. 2001) (dealer disclaimer of implied warranty under Act context)
- Rothe v. Maloney Cadillac, Inc., 119 Ill. 2d 288 (1988) (Act §2308 and manufacturer-implied warranty limitations)
- Sorce v. Naperville Jeep Eagle, Inc., 309 Ill. App. 3d 313 (1999) (addresses Act vs. UCC warranty interplay)
- Mekertichian v. Mercedes-Benz U.S.A., L.L.C., 347 Ill. App. 3d 828 (2004) (breach of warranties arising from express warranties)
- Villanueva v. Toyota Motor Sales, U.S.A., Inc., 373 Ill. App. 3d 800 (2007) (dealer’s as-is language and warranty enforceability)
