Loiodice v. BMW of North America, LLC
125 A.D.3d 723
N.Y. App. Div.2015Background
- Plaintiff leased a new 2008 BMW 328xi on November 10, 2007 and received a BMW New Vehicle Limited Warranty (4 years/50,000 miles).
- Plaintiff purchased the vehicle in October 2010 and thereafter repeatedly returned it to authorized dealers for persistent defects.
- Plaintiff sued BMW on November 22, 2011 asserting, inter alia, a breach of written and implied warranties under the Magnuson‑Moss Warranty Act (Warranty Act) and a General Business Law § 349 claim.
- BMW moved under CPLR 3211(a) to dismiss the Warranty Act and GBL § 349 causes of action as time‑barred.
- The Supreme Court denied BMW’s motion to dismiss both causes; BMW appealed as to the denial of dismissal of the second (Warranty Act) and third (GBL § 349) causes of action.
- The Appellate Division reversed as to the Warranty Act claim (dismissed as time‑barred) and affirmed denial as to the GBL § 349 claim (timely).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Warranty Act claim is time‑barred and when it accrued | Accrual should be delayed until defects manifested/should have been discovered after delivery | Accrual occurred at tender of delivery (Nov 10, 2007); four‑year limitations expired before suit | Accrual at delivery; Warranty Act claim time‑barred and dismissed |
| Whether the GBL § 349 claim is time‑barred | Claim arises from October 2010 sale; timely filed within three years (Nov 22, 2011) | Argued it was time‑barred if accrual earlier | Accrual on the October 2010 sale; claim timely and motion to dismiss denied |
Key Cases Cited
- Statler v. Dell, Inc., 775 F. Supp. 2d 474 (E.D.N.Y.) (discusses Warranty Act claims and UCC 2‑725 accrual rule)
- Gaidon v. Guardian Life Ins. Co. of Am., 96 N.Y.2d 201 (NY 2001) (GBL § 349 accrual when plaintiff is injured by deceptive act)
- Swell v. Lorillard Tobacco Co., 94 N.Y.2d 43 (NY 1999) (accrual principles for § 349 claims)
- Banker v. Vitanza, 115 A.D.3d 690 (2d Dep't 2014) (statute‑of‑limitations application to warranty claims)
- City of Yonkers v. 58A JVD Indus., Ltd., 115 A.D.3d 635 (2d Dep't 2014) (defendant’s prima facie burden in CPLR 3211 statute‑of‑limitations motions)
- Swift v. New York Med. Coll., 25 A.D.3d 686 (2d Dep't 2006) (defendant must show when cause of action accrued for prima facie showing)