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Marcus v. BMW of North America, LLC
687 F.3d 583
| 3rd Cir. | 2012
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Background

  • This is a putative class action about Bridgestone run-flat tires on BMWs sold/leased in New Jersey.
  • Plaintiff Marcus alleged defects in Bridgestone RFTs and sued BMW and Bridgestone for NJCFA, breach of warranty, and contract issues.
  • District Court certified a New Jersey subclass under Rule 23(b)(3) but not a nationwide class.
  • Court remanded due to defects in class definition, ascertainability, and predominance analyses.
  • Marcus’s claims center on whether the tires are unusually susceptible to road-hazard damage, unreparable, expensively replaceable, and non-reconfigurable for non-RFT use.
  • Issue-centric proof and causation concerns threaten class-wide resolution given individual circumstances of tire failures.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the New Jersey class is properly defined and ascertainable Marcus seeks a NJ subclass defined by Bridgestone RFTs that flat and are replaced BMW/Bridgestone contend the class is poorly defined and not ascertainable Remand required for a clearly defined, ascertainable class
Whether numerosity was proven for Rule 23(a)(1) Evidence shows many potential class members Record only proves Marcus; no robust NJ-specific numerosity District Court abused discretion on numerosity for the NJ class
Whether common questions predominate under Rule 23(b)(3) Common defects and causation facts predominate across class Individual causation will predominate; repair/diagnosis varies Predominance not shown; class certification vacated for NJ claims
Whether NJCFA claims can be certified given knowability and causation nuances Presumption of causation applies due to uniform omission Knowledge before purchase varies; causation not uniform Presumption insufficient without facts; predominate issues require individualized proof
Whether Marcus’s typicality and choice-of-law defenses defeat class treatment Marcus’s claims arise from same conduct applying to class NY law defenses and vehicle variety risk atypicality Not resolved on remand; need factual findings on knowability and uniformity

Key Cases Cited

  • Int’l Union, United Auto., Aerospace & Agricultural Implement Workers of Am. Welfare Fund v. Merck & Co., 929 A.2d 1076 (N.J. 2007) (presumption of causation and reactivity considerations for NJCFA class)
  • Lee v. Carter-Reed Co., LLC, 4 A.3d 561 (N.J. 2010) (predominance and uniform reaction to information; validation of NJCFA class treatment in appropriate context)
  • Varacallo v. Massachusetts Mut. Life Ins. Co., 752 A.2d 807 (N.J. Super. Ct. App. Div. 2000) (evaluate knowability of fraud and uniform class reactions to determine predomination)
  • In re Hydrogen Peroxide Antitrust Litig., 552 F.3d 305 (3d Cir. 2009) (rigorous Rule 23 analysis; weighing competing expert evidence at certification)
  • Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (U.S. 2011) (Rule 23 requirements are not mere pleading rules; require factual conformance)
  • Amchem Prod., Inc. v. Windsor, 521 U.S. 591 (U.S. 1997) (principles of predominance and class certification framework)
Read the full case

Case Details

Case Name: Marcus v. BMW of North America, LLC
Court Name: Court of Appeals for the Third Circuit
Date Published: Aug 7, 2012
Citation: 687 F.3d 583
Docket Number: 11-1192, 11-1193
Court Abbreviation: 3rd Cir.