Wood v. Bill Cooke Imports, Inc.
5:09-cv-00640
N.D.N.Y.Sep 26, 2011Background
- Wood sues Maguire Auto LLC and Volvo Cars of North America LLC in the N.D.N.Y. for breach of implied warranty and fraud arising from a June 2006 used-car purchase.
- Plaintiff alleges the car was not merchantable and not certified, and that Volvo misrepresented its status and concealed defects.
- Defendants move to dismiss for lack of subject-matter jurisdiction (Dkt. Nos. 28, 30).
- The court conducts a choice-of-law analysis for punitive-damages and damages underpinning jurisdiction.
- The court grants the motions, dismissing the Amended Complaint without prejudice to refile in state court within limitations tolling.
- The decision discusses damages, punitive-damages viability, and a path for repleading in state court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether punitive damages affect MMWA jurisdiction | Wood seeks punitive damages under MMWA via state-law fraud. | Defendants contend punitive damages are unavailable or do not push damages above thresholds. | Punitive damages not available for MMWA claim; jurisdiction unmet. |
| Whether consumer-fraud damages exceed the jurisdictional amount | Illinois NY fraud claims could exceed $75,000. | Violations do not reach $75,000 under applicable choice-of-law. | Under NY law, damages do not reach jurisdictional minimum; no subject-matter jurisdiction. |
| Choice of law for punitive damages in fraud claims | Illinois law governs punitive damages for fraud. | New York law governs with public-harm requirement for punitive damages. | New York law governs punitive-damages analysis. |
| Whether NY law applies to the NY CPA/IL CPA fraud claims for damages | Plaintiff argues Illinois law on punitive damages applies. | Locus of the tort is New York; NY § 349 applies. | NY substantive law governs consumer-fraud claim; potential damages reviewed under NY limits. |
| Whether common-law fraud claim supports jurisdictional threshold | Damages from common-law fraud could exceed thresholds. | Damages analysis shows total potential damages capped; not met for jurisdiction. | Common-law fraud damages do not establish jurisdiction; dismissal affirmed. |
Key Cases Cited
- Carvel Corp. v. Noonan, 350 F.3d 6 (2d Cir. 2003) (punitive damages require public-harm showing when conduct relates to contract)
- Walker v. Sheldon, 10 N.Y.2d 401 (N.Y. 1961) (public-harm requirement for punitive damages in contract-related torts)
- Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487 (U.S. 1941) (choice-of-law rules in federal court follow forum-state rules)
- Makarova v. U.S., 201 F.3d 110 (2d Cir. 2000) (standard for jurisdictional-dismissal challenges; not favorable-inference rule for jurisdiction)
- Williams v. Planet Motor Car, Inc., 738 N.Y.S.2d 170 (N.Y. Civ. Ct. 2001) (damages for repair costs and loss-of-use under NY CPA)
- Carbo Indus. v. Becker Chevrolet, 112 A.D.2d 336 (N.Y. App. Div. 2d Dept. 1985) (damages including purchase-price refunds and related costs)