McCabe v. Daimler AG
160 F. Supp. 3d 1337
N.D. Ga.2015Background
- Putative multi-state class action alleging fuel-system defects (2003–09 W211 E‑Class) causing gasoline odors/leaks; NHTSA opened a 2012 investigation and MBUSA later extended limited warranty for certain fuel‑tank components.
- Plaintiffs: McCabe and Herring (Georgia), Stone (Texas), Vo (Virginia) — all bought used E‑Class vehicles; assorted repairs/replacements occurred post‑purchase; some purchases from dealers, some from private sellers.
- After discovery, remaining claims were common‑law fraudulent concealment (all four plaintiffs) and Vo’s Virginia Consumer Protection Act (VCPA) claim.
- Defendants moved for summary judgment arguing (inter alia) no duty to disclose to these purchasers, lack of proximate causation and lack of reliance; court applied summary‑judgment standards to evidence.
- Court found no legal duty to disclose as a matter of law to the remote sellers/purchasers under Georgia, Texas, and Virginia law and granted summary judgment for defendants; Vo’s VCPA claim likewise failed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether defendant owed a duty to disclose fuel‑system defect to Georgia purchasers (McCabe, Herring) | Rivers and "particular circumstances" can create duty to disclose outside fiduciary relationship | No agency/relationship with dealers or direct contact with purchasers; no precedent imposing duty here | No duty as matter of law; fraudulent concealment claims dismissed for McCabe and Herring |
| Whether defendant owed a duty to disclose to Texas purchaser (Stone) | Duty can arise absent fiduciary relationship where purchaser lacks equal opportunity to discover defect | No fiduciary relation, no representations to Stone (private sale), no recognized Texas duty here | No duty as matter of law; Stone’s fraud by nondisclosure claim dismissed |
| Whether defendant owed a duty to disclose to Virginia purchaser (Vo) | Virginia cases permit duties where seller has superior knowledge or where remote seller made representations that induce reliance | Defendants were remote sellers with no affirmative misrepresentation to Vo and no privity; omission claims require duty | No duty as matter of law for omission by remote seller; Vo’s fraudulent concealment claim dismissed |
| Whether Vo’s VCPA claim (based on omission) survives | VCPA prohibits deceptive acts; omission theory equates to fraud under Virginia law | VCPA omission claim requires same duty to disclose as common‑law fraud; no duty here | VCPA claim fails for same reason as fraud claim; summary judgment for defendants |
Key Cases Cited
- Abraham v. Volkswagen of Am., Inc., 795 F.2d 238 (2d Cir. 1986) (knowledge of part failure after warranty does not render time/mileage limits unconscionable)
- Rivers v. BMW of N. Am., Inc., 214 Ga. App. 880 (Ga. Ct. App. 1994) (latent defects concealed by affirmative denial may be actionable; fact‑specific disclosure analysis)
- Bradford v. Vento, 48 S.W.3d 749 (Tex. 2001) (fraud by nondisclosure requires a duty to disclose; duty arises in limited situations)
- Nissan Motor Co. v. Armstrong, 145 S.W.3d 131 (Tex. 2004) (no duty by remote manufacturer to subsequent purchaser in private sale)
- Mortarino v. Consultant Engineering Servs., 467 S.E.2d 778 (Va. 1996) (remote seller fraud requires knowledge or reason to know plaintiff would rely on misrepresentation)
- Bank of Montreal v. Signet Bank, 193 F.3d 818 (4th Cir. 1999) (failure to disclose not actionable absent duty; duty may arise where one party has superior knowledge and the other assumes fact does not exist)
- Celotex Corp. v. Catrett, 477 U.S. 317 (U.S. 1986) (summary judgment burden shifts to nonmoving party to show genuine dispute)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (U.S. 1986) (court must view evidence in light most favorable to nonmoving party)
- Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 (U.S. 1986) (summary judgment appropriate where record could not lead a rational trier of fact to find for nonmoving party)
