ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTIONS TO DISMISS
On May 1, 2012, Ali Asghari filed this action on his own behalf and on behalf of a nationwide class of similarly situated individuals, against Volkswagen Group of America, Inc. (“VW Group”), Volkswagen AG, and Audi AG (collectively, “defendants”).
VW Group moved to dismiss the first amended complaint on March 1, 2013.
I. BACKGROUND
A. Facts Alleged in the First Amended Complaint
Plaintiffs are California citizens who leased or purchased allegedly defective
Plaintiffs allege that prior to 2007, defendants knew of the following design and/or manufacturing defects in the class vehicles: (1) that the engine is unable to utilize engine oil properly; and (2) that the engine improperly burns off and consumes “abnormally high amounts of oil” (collectively “the oil consumption defect”).
Plaintiffs contend that the rate of oil consumption can be as high as one quart every 500 miles.
Plaintiffs allege that the oil consumption defect was not reasonably foreseeable to the named plaintiffs or to class members,
Plaintiffs plead the following claims against all defendants on their own behalf and on behalf of the nationwide class and California sub-class: (1) violation of California’s Consumer Legal Remedies Act (“CLRA”), California Civil Code § 1750 et
II. DISCUSSION
A. Legal Standard Governing Motions to Dismiss under Rule 12(b)(6)
A Rule 12(b)(6) motion tests the legal sufficiency of the claims asserted in a complaint. A Rule 12(b)(6) dismissal is proper only where there is either a “lack of a cognizable legal theory” or “the absence of sufficient facts alleged under a cognizable legal theory.” Balistreri v. Pacifica Police Department,
The court must accept all factual allegations pleaded in the complaint as true, and construe them and draw all reasonable inferences from them in favor of the non-moving party. Cahill v. Liberty Mutual Insurance Co.,
To survive a motion to dismiss, plaintiffs complaint must “contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ... A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal,
B. Whether Plaintiffs State a Claim under the CLRA or the UCL
1. Legal Standard Governing CLRA Claims
The CLRA makes illegal various “unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or which results in the sale or lease of goods or services to any consumer.” Cal. Civ.Code § 1770(a). Conduct that is “likely to mislead a reasonable consumer” violates the CLRA. Colgan v. Leatherman Tool Group, Inc.,
Section 1770(a)(5) prohibits “[r]epresenting that goods or services have ... characteristics, ingredients, uses, benefits, or quantities which they do not have----” In addition, § 1770(a)(7) prohibits “[representing that goods or services are of a particular standard, quality, or grade ... if they are of another.” These sections of the CLRA encompass deceptive omissions as well as deceptive representations. Mui Ho v. Toyota Motor Corp.,
2. Legal Standard Governing UCL Claims
Under the UCL, any person or entity that has engaged, is engaging, or threatens to engage “in unfair competition may be enjoined in any court of competent jurisdiction.” Cal. Bus. & Prof.Code §§ 17201, 17203. “Unfair competition” includes “any unlawful, unfair or fraudulent business act or practice and unfair, deceptive, untrue or misleading advertising.” Id., § 17200. The California Supreme Court has construed the term broadly. See Cel-Tech Communications, Inc. v. Los Angeles Cellular Telephone Co.,
3. Whether Asghari Can Assert Claims Under the CLRA or the UCL
In their moving papers, defendants argued that Asghari could not assert claims under the CLRA or the UCL, on behalf of himself or the class, because he purchased his vehicle in-New York.
Plaintiffs countered that Asghari had stated viable CLRA and UCL claims despite the fact that he did not lease his vehicle in California.
In Mazza, the Ninth Circuit considered a case in which plaintiffs successfully sought certification of a nationwide class whose members resided in 44 jurisdictions. Id. at 587 n. 1. The court examined the consumer protection laws of those jurisdictions and concluded that there were material differences between the California laws under which plaintiffs sued and the laws of the other states in which class members resided. See id. at 591 (describing differences between California’s consumer protection laws and the laws of the other states). The court also noted that states have, “an interest in applying [their] law to transactions within [their] borders,” and that application of California law to
The principle articulated in Mazza “applies generally and is instructive even when addressing a motion to dismiss.” Frezza v. Google Inc., No. 5:12-cv-00237-RMW,
Mazza did not, however, create a “general rule that ‘where an out-of-state plaintiff claims to have been deceived or harmed as a result of misrepresentations or omissions received outside of California, that plaintiffs consumer protection claims must be brought under that plaintiffs own state laws.’ ” Forcellati v. Hyland’s, Inc.,
In their motion, defendants did not argue that the CLRA and the UCL differed materially from equivalent New York consumer protection laws. They thus gave the court no basis to conclude that Asghari could not assert claims under California law. See Allen,
Courts have, however, recognized that there are material differences between California and New York consumer protection laws. See Mazza,
4. Whether Plaintiffs’ CLRA Claims Should Be Dismissed for Failure to Comply with Statutory Notice Requirements
A plaintiff seeking damages under the CLRA must provide notice to the defendant under California Civil Code § 1782(a). The statute states that at least thirty days prior to commencing an action for damages under the CLRA, the consumer must (1) notify the person alleged to have committed the violations, and (2) demand that the person “correct, repair, replace, or otherwise rectify the goods or services” in question. Cal. Civ.Code § 1782(a). The notice must “be in writing and ... be sent by certified or registered mail, return receipt requested,” to the place where the transaction occurred or to the person’s principal place of business in California. Id.
When a named plaintiff provides written notice to a defendant not only on his own behalf but on behalf of similarly situated consumers, the named plaintiffs notice suffices to satisfy § 1782 for all class members. In re Toyota Motor Corp.
Plaintiffs allege in their first amended complaint that “through ... Asghari, [they] have provided all Defendants with notice of their alleged violations of the CLRA pursuant to California Civil Code § 1782(a).”
As noted, however, Asghari has since withdrawn his CLRA claim. Consequently, the other named plaintiffs and class members cannot rely on Asghari’s CLRA letter. Accordingly, the court dismisses plaintiffs’ CLRA claims with leave to amend to include allegations concerning other named plaintiffs’ satisfaction of the thirty day notice requirement.
5. Whether the CLRA Claims of Plaintiffs Lamia, Calver, and Prasobratana Are Time-Barred
The limitations period for CLRA claims is three years. CAL. CIV. CODE § 1783. Defendants argue that the limitations peri
Under the CLRA, the limitations period begins to run on the date the improper consumer practice was committed. Cal. Civ.Code § 1783 (“Any action brought under the specific provisions of [the CLRA] shall be commenced not more than three years from the date of the commission of such method, act, or 'practice ” (emphasis added)). In this context, that would be the date plaintiffs purchased or leased their vehicles. See Keegan,
Defendants acknowledge that Calver allegedly purchased her vehicle used from a third party in 2011, less than three years before Asghari filed the original complaint in this action.
Even if the court were to assume that the statute of limitations on Calver’s claims began to run when the individual who sold it to her first purchased the car from an Audi dealer, however, the complaint does not allege that that purchase occurred more than three years before Asghari filed this action. Defendants assert it can be inferred that Calver’s vehicle was purchased from an authorized Audi dealer in 2008 because “Calver’s vehicle has an in service date of March 26, 2008.”
The complaint does allege that Lamia and Prasobratana’s purchased their vehicles more than three years before Asghari commenced this action. “Plaintiffs contend, however, that their CLRA claims are not time-barred because the limitations period was tolled by the delayed discovery rule.”
Plaintiffs assert that the delayed discovery rule applies because they could not have discovered the bases for their claims until defendants conducted oil consumption tests on the vehicles; Prasobratána never received the results of this test of his vehicle, while Lamia received the results only after the original complaint was filed.
Plaintiffs do not allege that defendants are liable under the CLRA simply because their vehicles required additional oil between regular oil changes, however. Nor do they allege claims based on rapid oil consumption that occurred on one occasion and necessitated the addition of oil prior to a regularly anticipated oil change. Plaintiffs allege, rather, that their vehicles have a defect that causes the engines to utilize engine oil improperly, burning it at an abnormally high rate, and leading to oil changes or the addition of oil on an unreasonably frequent basis.
The complaint pleads that Lamia took his vehicle to an authorized Audi repair facility in July 2012, complaining that he frequently had to add supplemental oil between oil changes.
The complaint alleges no facts, however, concerning the time and manner of Prasobratana’s discovery that the engine was consuming oil at an accelerated rate. Although plaintiffs allege that Prasobratana added supplemental oil to his vehicle between oil changes, they do not plead facts as to how or when he learned that additional oil was needed because of the purported oil consumption defect. Nor does the complaint allege any facts from which it could be inferred that Prasobratana acted diligently in attempting to discover the defect. On the basis of the present complaint, therefore, Prasobratana is not entitled to invoke the discovery rule to show that his CLRA claim is timely. Prasobratana purchased his vehicle in 2008, more than three years before plaintiffs filed their complaint. The court concludes, therefore, that Prasobratana’s CLRA claim is time-barred.
6. Whether Calver’s and Prasobratana’s UCL Claims Are Time-Barred
The Ninth Circuit has held that UCL claims “are subject to a four-year statute of limitations which beg[i]n[s] to run on the date the cause of action accrue[s], not on the date of discovery.” Karl Storz Endoscopy-America, Inc. v. Surgical Tech., Inc.,
Defendants argue that Calver’s and Prasobratana’s UCL claims must be dismissed as time-barred, because their vehicles were purchased from defendants in 2008, more than four years before Asghari filed this action in May 2012.
By contrast, the facts alleged in the complaint do not show that Calver’s claim accrued more than four years before this action was filed. Calver allegedly purchased her vehicle from a third party in 2011. For the reasons stated in the court’s discussion of the timeliness of Calver’s CLRA claim, the complaint pleads no facts indicating that the third-party seller purchased the vehicle from defendants more than four years before plaintiffs commenced this action. Consequently, the court cannot conclude that Calver’s UCL claim is time-barred. See Von Saher,
7. Whether Calver Can Claim Restitution Under the UCL
Defendants next argue that Calver cannot claim restitution under the UCL.
Individuals’ remedies under the UCL are restricted to injunctive relief and restitution. A plaintiff may recover lost money in the form of restitution under the UCL, but not damages. See Korea Supply v. Lockheed Martin Corp.,
Plaintiffs have not alleged facts indicating that defendants obtained Calver’s money or property nor that defendants are in possession of funds rightfully belonging to her. Rather, the complaint alleges that Calver bought her vehicle from a third party. The complaint thus fails to plead facts showing that Calver has a plausible claim to restitution under the
8. Whether Plaintiffs Have Adequately Pled CLRA and UCL Claims
a. Whether Plaintiffs’ Allegations Satisfy the Heightened Pleading Requirements of Rule 9(b)
The parties agree that plaintiffs’ UCL and CLRA claims “sound in fraud” because they are based on defendants’ allegedly fraudulent omission and/or concealment of material information concerning the engine defect. Such claims are subject to the heightened pleading requirements of Rule 9(b) of the Federal Rules of Civil Procedure. Kearns v. Ford Motor Co.,
Nonetheless, a plaintiff alleging fraudulent omission or concealment must still plead the claim with particularity. See Bias v. Wells Fargo & Co.,
Defendants argue that plaintiffs have failed adequately to plead a fraudulent omission that satisfies Rule 9(b).
Plaintiffs assert that their claims are sufficient under Rule 9(b).
The court concludes that plaintiffs have adequately alleged their fraudulent omission/concealment claims with the particularity required by Rule 9(b). Plaintiffs plead “what” was omitted and/or concealed (an engine defect that causes the engine to consume excessive oil and creates a risk of engine failure);
b. Whether Plaintiffs Have Alleged a Duty to Disclose
Defendants assert that omissions are actionable under the CLRA and the UCL only when the omission is either contrary to a representation made by defendant or where a duty to disclose exists.
“Under California law, there are four circumstances in which an obligation to disclose may arise: (1) when the defendant is in a fiduciary relationship with the plaintiff; (2) when the defendant had exclusive knowledge of material facts not known to the plaintiff; (3) when the defendant actively conceals a material fact from the plaintiff; and (4) when the defendant makes partial representations but also suppresses some material facts.” Smith v. Ford Motor Co.,
“[I]n order for non-disclosed information to be material, a plaintiff must show that ‘had the omitted information been disclosed, one would have been aware of it and behaved differently.’ ” Oestreicher,
Plaintiffs base their UCL and CLRA claims on defendants’ allegedly knowing and intentional failure to disclose the engine defect to them and other putative class members. They contend defendants had a duty to disclose because they knew material facts concerning the defect that they actively concealed. Under California law, and as recently described by the Ninth Circuit, “ ‘[a] manufacturer’s duty to consumers is limited to its warranty obligations absent either an affirmative misrepresentation or a safety issue.’ ” Id. at 987-88 (citing Oestreicher,
Plaintiffs allege that the engine’s inability to utilize oil properly can cause engine failure to occur at any time, under any driving condition, and at any speed, creating a serious risk of injury.
9. Whether Plaintiffs Have Standing to Pursue a UCL Claim
To have standing to bring a claim under the UCL, a plaintiff must show that she “has suffered injury in fact and has-lost money or property as a result of’ defendant’s violation of the statute. Pom Wonderful LLC v. Coca-Cola Co.,
Defendants argue that plaintiffs fail to allege injury-in-fact resulting from their allegedly fraudulent concealment of the oil consumption defect.
C. Whether Asghari States a Claim under § 349 of New York’s General Business Law
New York General Business Law (“GBL”) § 349 creates a private cause of action for any person injured by “deceptive acts or practices in the conduct of any business, trade or commerce or in the furnishing of any service” in the state of New York. N.Y. Gen. Bus. Law § 349. To state a claim under § 349, a plaintiff must allege; (1) the act or practice was consumer-oriented; (2) the act or practice was misleading in a material respect; and (3) the plaintiff was injured as a result. Spagnola v. Chubb Corp.,
Defendants argue that Asghari’s GBL § 349 claim must be dismissed because he fails to allege any fraudulent omission or concealment.
Defendants also contend that Asghari has not adequately alleged that he was injured by their alleged failure to disclose the oil consumption defect.
In Small, the New York Court of Appeals held that plaintiffs had not adequately alleged a cognizable injury under the GBL, where they asserted that defendants’ failure to disclose facts relating to the addictive properties of nicotine prevented them from making free and informed choices as consumers. Id. Plaintiffs alleged that had they known that nicotine was addictive, they never would have purchased cigarettes. Plaintiffs did not, however, allege that the cost of cigarettes was affected by the alleged misrepresentations, nor did they seek recovery for injury to their health as a result of their addiction. The court rejected plaintiffs’ assertion that a “consumers who buy a product that they would not have purchased, absent a manufacturer’s deceptive commercial practices, have suffered an injury under General Business Law § 349” absent a “manifestation of either pecuniary or ‘actual’ harm.” Id.
Small does not require dismissal of Asghari’s GBL claim because he has alleged actual, pecuniary harm. As noted in the court’s discussion of plaintiffs’ standing to assert UCL claims, the complaint alleges that Asghari suffered concrete financial injuries in the form of out-of-pocket expenses for frequent additions of oil to his vehicle.
D. Plaintiffs’ Breach of Warranty Claims
In addition to state consumer protection claims, plaintiffs plead various breach of warranty claims. They asserts claims for breach of express warranty under the California U.C.C. and the New York U.C.C.; breach of warranty under the Magnuson Moss Warranty Act, 15 U.S.C. § 2301 et seq.; and breach of implied warranty under the Song-Beverly Consumer Warranty Act. The court addresses each of these claims in turn.
1. Breach of Express Warranty
a. Breach of Express Warranty Under the California U.C.C.
California Commercial Code § 2313, which defines express warranty, applies to “transactions in goods.” See Cal. Com. Code § 2102; see also Cal. Civ.Code § 1791.2(a)(1) (defining an “express warranty” as “[a] written statement arising out of a sale to the consumer of a consumer good pursuant to which the manufacturer, distributor, or retailer undertakes to preserve or maintain the utility or performance of the consumer good or to provide compensation if there is a failure in utility or performance”); Black’s Law Dictionary at 1582 (7th ed.1999) (defining “express warranty” as “[a] warranty created by the overt words or actions of the seller”); 3 B.E. Witkin, Summary of California Law, §§ 55-56 (9th ed.1990); Richard A. Lord, Williston on Contracts 4th § 52.45 (4th ed.2004) (“Under the [Uniform Commercial] Code, an express warranty is usually associated with a contract for the sale of goods, but may be found in connection with other transactions involving goods.... There is a division of opinion whether the express warranty concepts in the Code are also applicable or may be extended to service agreements”).
An express warranty is a term of the parties’ contract. See A.A. Baxter Corp. v. Colt Industries, Inc.,
To prevail on a breach of express warranty claim, a plaintiff must prove that the seller “(1) made an affirmation of fact or promise or provided a description of its goods; (2) the promise or description formed part of the basis of the bargain; (3) the express warranty was breached; and (4) the breach caused injury to the plaintiff.” Rodarte v. Philip Morris, Inc., No. 03-0353FMC,
Defendants posit several reasons why plaintiffs’ breach of express warranty under the California Commercial Code § 2313 should be dismissed: (1) that plaintiffs fail adequately to plead facts showing that they relied on the warranty in acquiring their vehicles; (2) that plaintiffs fail to allege that the warranty contained any representation regarding the vehicle’s oil consumption that (a) could give rise to breach of warranty claim and (b) was- relied on by any plaintiff; (3) that the disclosures in the Owner’s Manual, specifying the need for the addition of oil between oil changes, precludes a breach of express warranty claim; (4) that the express warranty covers only “repair or replacement to correct a defect in [the] manufacturer’s material and workmanship”; and (5) that plaintiffs have not incurred any out-of-pocket expenses for repairs to their vehicles.
Plaintiffs contend their California breach of express warranty claim is sufficiently pled.
“[n]one of the authorities Plaintiff cites in her opposition supports] the erroneous proposition that reliance is not required in an express warranty action not founded on privity....' In [Weinstat] the purchasers of dental equipment sued the seller, and the express warranty claim was based on privity. Similarly, in Keith [v. Buchanan,173 Cal.App.3d 13 ,220 Cal.Rptr. 392 (1985),] the purchaser of a boat sued the company that sold him the boat and allegedly made express warranties antecedent to the transaction. Neither Weinstat nor Keith supports Plaintiffs erroneous contention that reliance is not required where privity is absent.” Coleman v. Boston Scientifie Corp., 1:10-CV-01968,2011 WL 3813173 , *4 (E.D.Cal. Aug. 29, 2011).
See also id. at *5 (stating that “reliance (or some other substitute for privity) is required for an express warranty claim against a non-selling manufacturer of a product”). "When there is no privity of contract, California law requires a showing that a plaintiff relied on an alleged warranty. Keegan,
Here, none of the plaintiffs purchased his or her vehicle directly from the manufacturer. Therefore, none was in privity with defendants. See Clemens v. DaimlerChrysler Corp.,
The complaint does not allege that any plaintiff relied on the express warranty in deciding to purchase his or her vehicle. Consequently, the court concludes that plaintiffs have failed to state a claim for breach of express warranty under California law. See Coleman,
b. Breach of Express Warranty Under the New York U.C.C.
Section 2-313 of the New York’s U.C.C. governs express warranties. Under this section,
“(a) Any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates an express warranty that the goods shall conform to the affirmation or promise.
(b) Any description of the goods which is made part of the basis of the bargain creates an express warranty that the goods shall conform to the description.
(c) Any sample or model which is made part of the basis of the bargain creates an express warranty that the whole of the goods shall conform to the sample or model.” N.Y. U.C.C. § 2-313(1).
An express warranty is thus “an affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain.” Horowitz v. Stryker Corp.,
Defendants argue that Asghari’s breach of express warranty claim under the New York U.C.C. fails for the same reasons their breach of express warranty under California Commercial Code § 2313 fails.
2. Breach of Implied Warranty under the Song-Beverly Act
a. Legal Standard under the Song-Beverly Act
The Song-Beverly Consumer Warranty Act (“Song-Beverly Act”) was enacted to regulate warranties and strengthen consumer remedies for breaches of warranty. National R.V., Inc. v. Foreman,
As defined in the Song-Beverly Act, an implied warranty of merchantability guarantees that “consumer goods meet
b. Whether Asghari States a Claim under the Song-Beverly Act
Defendants argue that Asghari cannot assert a claim under the Song-Beverly Act because he purchased his vehicle in New York.
c. Whether Calver’s and Prasobratana’s Song-Beverly Act Claims Are Time-Barred
Defendants argue that the Song-Beverly claims of Calver and Prasobratana are time-barred.
Like UCL claims, Song-Beverly Act claims are subject to a four-year statute of limitations. Horne v. Harley-Davidson, Inc.,
Defendants argue that plaintiffs do not properly plead a breach of an implied warranty of merchantability.
A plaintiff claiming breach of an implied warranty of merchantability must show that the product “did not possess even the most basic degree of fitness for ordinary use.” Mocek v. Alfa Leisure, Inc.,
Whether a car provides a “minimum level of quality” is not determined by the manner in which it is operating at the time of sale. A vehicle that operates for some time after purchase may still be deemed “unfit for ordinary purposes” if its components are so defective
The complaint contains various allegations that, accepted as true, state a implied warranty of merchantability claim. Specifically, as noted, the complaint alleges that the engine is unable to properly utilize the engine oil, resulting in consumption of “abnormally high amounts of oil.”
“I bought a demo A4 Audi ... I own a Quaker State oil change and three of our technicians have said they have never seen a car burn this much oil and claims there is a problem with the engine.... The other day driving the car it lots power going up the hill and the engine light flashed on then everything was ok. I am a 53 year old wom[an] on the road driving by myself afraid something will happen[ ] to the car ... I am fearful of driving the car especially when I have to drive out of the car alone.”115
Another complaint states: “Since I bought my Audi, I have had to put oil in it many times ... I have also had an issue with the car seeming to lose power.... This is very startling when it happens.”
3. Magnuson-Moss Warranty Act
The Magnuson-Moss Warranty Act (“MMWA”) permits a “consumer” to sue
“(A) any written affirmation of fact or written promise made in connection with the sale of a consumer product by a supplier to a buyer which relates to the nature of the material or workmanship and affirms or promises that such material or workmanship is defect free or will meet a specified level of performance over a specified period of time, or (B) any undertaking in writing in connection with the sale by a supplier of a consumer product to refund, repair, replace, or take other remedial action with respect to such product in the event that such product fails to meet the specifications set forth in the undertaking, which written affirmation, promise, or undertaking becomes part of the basis of the bargain between a supplier and a buyer for purposes other than resale of such product.” 15 U.S.C. § 2301(6) (emphasis added).
As used in the MMWA, the term implied warranty “means an implied warranty arising under State law ... in connection with the sale by a supplier of a consumer product.” 15 U.S.C. § 2301(7); Barabino v. Dan Gamel, Inc., No. 2:04-cv-2359-MCE-PA,
Defendants argue that plaintiffs’ MMWA breach of warranty claim should be dismissed because it is “entirely derived from state law.”
III. CONCLUSION
For the reasons stated, the court grants defendants’ motions to dismiss Asghari’s California claims; Prasobratana’s CLRA, UCL, and Song-Beverly Act claims; Calver’s claim for restitution under the UCL; plaintiffs’ claims for breach of express warranty under both California and New York
Notes
. Complaint, Docket No. 1 (May 1, 2012).
. First Amended Complaint ("FAC”), Docket No. 17 (Aug. 10, 2012).
. Volkswagen Group of America, Inc.'s Motion to Dismiss the First Amended Complaint Pursuant to Fed.R.Civ.P. 12(b)(6) and 9(b) ("VW Group Motion”), Docket No. 25 (Oct. 3, 2012).
. Opposition to Motion to Dismiss ("VW Group Opp.”), Docket No. 35 (Nov. 6, 2012).
. Volkswagen AG's and Audi AG’s Motion to Dismiss the First Amended Complaint Pursuant to Fed.R.Civ.P. 12(b)(6) and 9(b) (“VW/Audi Motion',’), Docket No. 80 (May 16, 2013).
. Plaintiffs' Opposition to Volkswagen AG's and Audi AG's Motion to Dismiss the First Amended Complaint ("VW/Audi Opp.”), Docket No. 102 (July 8, 2013).
. FAC, ¶ 1; id., ¶¶ 13-42.
. Id., ¶ 2.
. Id., ¶ 71.
. Id., ¶ 3.
. Id., ¶ 4.
. Id., ¶ 5.
. Id., ¶6.
. Id.
. Id.
. Id.
. Id., ¶¶ 7-8.
. Id.
. Id., ¶ 9.
. Id., ¶ 10.
. Id., ¶11.
. VW Group Motion at 8-9.
. Id.
. Id.
. VW Group Opp. at 18.
. Id.
. Id.
. Id.
. Id.
. Supplement to Defendants’ Motion to Dismiss, Docket No. 116 (Aug. 8, 2013).
. Statement of Plaintiffs in Response to Defendants' Supplemental Brief in Support of Its Motion to Dismiss, Docket No. 119 (Aug. 19, 2013), ¶ 1(a). That same day, defendants filed a pleading stating that they were in agreement with plaintiff’s decision. (Notice Confirming Agreement, Docket No. 120 (Aug. 19, 2013).)
. FAC, ¶ 93.
. Request for Judicial Notice, Exh. 4, Docket No. 35-5 (Nov. 6, 2012). The court considers Asghari's letter because it is incorporated into the complaint by reference (see FAC, ¶ 93), and because defendants do not dispute the authenticity of the letter, Won Kyung Hwang v. Ohso Clean, Inc., No. C-12-06355 JCS,
. Id.
. The letter suffices, however, only to satisfy the notice requirement for class members who purchased or leased 2007 through 2012 models of the class vehicles; it does not mention 2013 models of any vehicles manufactured by defendants.
. FAC, ¶ 19.
. Id., ¶ 34.
. Id., ¶ 25.
. VW/Audi Motion at 7.
. Id. The parties appear to assume that the statute of limitations for the claims of Lamia, Calver, and Prasobratana were tolled by Asghari's filing of the original complaint on May 1, 2012. The filing of a class action complaint tolls the running of the statute of limitations for all putative class members. Uddin v. Radio Shack, Inc., No. SACV 11-0398-CAS,
. VW Group Reply at 12 n. 4; VW/Audi Reply at 15 n. 4.
. Id.
. VW Group Motion at 9; VW/Audi Motion at 8.
. VW Group Motion at 24; VW/Audio Motion at 20.
. VW Group Opp. at 19.
. Id. at 21.
. VW Group Motion at 10.
. VW Group Opp. at 21.
. Id. The complaint alleges that Asghari had to add approximately one quart of oil every 1,300 to 1,400 miles. (FAC, ¶ 17). Defendants contend that the complaint also alleges that Lamia and Culver had to add approximately one quart of oil every 1,300 to 1,400 miles. The complaint actually pleads, however, that Lamia had to add approximately one quart of oil every 2,500 miles (FAC, ¶ 23), and that Calver had to add approximately one quart of oil every 1,600 miles. (FAC, ¶31.)
. FAC, ¶¶ 5-7.
. Id., ¶ 5.
. A dealer allegedly told Calver, for example, that an oil leak, not an engine defect, was the cause of her vehicle’s high oil consumption. (See id., ¶ 28.)
. See, e.g., id., ¶ 58.
. Id., ¶¶ 58-59.
. Id. The complaint does not specify which defendant designed the oil consumption defect test.
. Id.
. Id.
. Even if the court treats the earlier date of July 2012 as the date of discovery, Lamia's claim is not time-barred.
. Defendants can renew this argument if appropriate after further factual development.
. VW Group Opp. at 23-24.
. See supra, note 50.
. Although the court concludes infra that plaintiffs have sufficiently alleged fraudulent concealment of material information, the complaint contains no facts indicating that Prasobratana failed to discover his cause of action as a result of the alleged fraudulent concealment once it became apparent that his engine was burning excessive oil. The corn-plaint does not allege, for example, that Prasobratana did not file this action within the limitations period because defendants informed him that it was normal for his engine to bum so much oil or because, the problem was associated with an oil leak.
. VW/Audi Motion at 16.
. Id. (citing Shersher v. Super. Ct.,
. Id.
. The court could conclude, therefore, that plaintiffs have abandoned Calver’s claim for restitution under the UCL. See Stichting Pensioenfonds ABP v. Countrywide Fin. Corp.,
. VW Group Motion at 12-14.
. Id. at 11.
. Id. at 13. See also FAC, ¶ 122 n. 5.
. VW Group Opp. at 24-25.
. Id.
. FAC, ¶ 54; id., ¶ 59. At the hearing, defendants argued that plaintiffs had failed to plead the nature of the defect with the particularity required by Rule 9(b) because they did not allege the mechanical cause of the defect or the measures they had employed to determine that the vehicles’ rate of oil consumption is "excessive.” Defendants cite no authority that indicates these specific facts must be alleged to plead an engine defect resulting in excessive consumption of oil with particularity. Plaintiffs allege that the class vehicles’ engines are defective; that the defective engines are the "2.0 liter turbocharged engine” manufactured, installed, and/or distributed by Volkswagen; that the defect causes the engines to be unable properly to utilize engine oil; that the defect causes the engines to burn and/or consume abnormally high amounts of oil; that the defect causes "voluminous oil consumption that cannot be reasonably anticipated or predicted”; that the defect can cause engine failure while the vehicles are in operation, creating the risk of accidents and injury; that the rate of oil consumption for some class vehicles can be as high as one quart of oil per 500 miles driven; that the defect requires the addition of substantial amounts of oil between scheduled oil changes; and that the defect can cause engine damage. {Id., ¶¶ 3-8.) Plaintiffs elaborate on these general allegations in their individual allegations. The complaint asserts that Asghari’s vehicle consumed 0.76 quarters per 1,000 miles driven, and that major engine repairs were required to fix the defect, i.e., the removal and replacement of the engine’s piston rings. {Id., ¶ 17.) Similarly, the complaint alleges that an Audi dealer told Lamia that his vehicle’s engine consumed oil at a rate of 0.4 quarters per 1,000 miles, and that his engine needed to have its piston rings replaced to fix the problem. {Id., ¶ 23.) The complaint pleads that Calver’s vehicle consumed 0.63 quarts of oil per 1,000 miles, and that the dealer addressed the oil consumption issue by cleaning the pistons and installing four new piston rings in the engine. {Id., ¶ 31.) The complaint also quotes numerous consumer complaints concerning the oil consumption defect. {Id., ¶ 57.) The court finds that these allegations, taken together, sufficient to identify the purported defect with the particularity required by Rule 9(b).
. Id., ¶ 110.
. Id., ¶ 58; id., ¶ 101. Although defendants argue that the class vehicles’ rate of oil consumption was disclosed in the owners’ manuals for the vehicles, plaintiffs argue that they did not receive the manuals until after they had purchased the vehicles. (Plaintiffs’ Evidentiary Objections to Defendant Volkswagen Group of America, Inc.’s References to Owner's Manuals, Docket No. 34 (Nov. 6, 2012).) The complaint does not allege that plaintiffs received owners’ manuals from defendants or otherwise had access to them prior to purchasing their vehicles. Defendants, moreover, do not contend that the owner's manuals state that the class vehicles have a high rate of oil consumption due to an engine defect. The owners manuals do not, therefore, disprove plaintiffs’ allegations that defendants omitted and/or concealed information about the oil consumption defect prior to plaintiffs' purchases of their vehicles. See Tait v. BSH Home Appliances Corp., No. SACV 10-00711 DOC,
. Id., ¶ 55; see also id., ¶ 57 (consumer complaints filed with the NHTSA and posted on the Internet); id., ¶ 59 (“customers have reported the oil consumption defect in the Class Vehicles to Volkswagen directly and through its dealers”).
. Id. ¶ 61.
. At the hearing, defendants argued that the cases cited by the court are inapposite because in those cases, the class vehicles had a "demonstrable malfunction,” e.g., tire wear or blowout. The court disagrees. Some plaintiffs allege that they had to have the piston rings in their vehicles replaced; this gives rise to an inference that there may well have been a physical manifestation of the effects of the allegedly excessive oil consumption. In any event, it is clear that a latent defect can support a CLRA claim under certain circumstances. See Wilson v. Hewlett-Packard Co.,
. Id.
. VW Group Motion at 13-14.
. ‘‘[T]he rule set forth in Daugherty is consistent with the general policy stated by the California Supreme Court that although ‘[a] consumer should not be charged at the will of the manufacturer with bearing the risk of physical injury when he buys a product on the market,’ the consumer nevertheless 'can ... be fairly charged with the risk that the product will not match his economic expectations unless the manufacturer agrees that it will.’ ” Id. (citing Seely v. White Motor Co.,
. Id., ¶ 3.
. Id., ¶ 58; id., ¶ 101.
. See also Ehrlich,
. VW/Audi Motion at 18-19; VW Group Motion at 16.
. FAC, ¶ 31.
. Id., ¶ 29.
. Id., ¶ 14; id., ¶ 20; id., ¶ 26; id., ¶ 35.
. VW Group Motion at 17.
. Id. at 18.
. VW Group Opp. at 29-30.
. Id.
. Id. at 18-19.
. Id., ¶ 14.
. Id., ¶ 60.
. Id., ¶ 17.
. VW Group Motion at 19-21.
. VW Group Opp. at 25-27.
. See id.
. Id.
. VW Group Motion at 21-22.
. Plaintiffs argue that New York, like California, does not require reliance to recover for breach of express warranty claims.
. VW/Audi Motion at 20.
. Id.
. VW Group Opp. at 27, n. 32.
. Id.
. VW Group Opp. at 20-21.
. Id. See supra note 39.
. VW Group Opp. at 28-29.
. Id.
. At the hearing, defendants asserted that Calver’s Song-Beverly Act claim accrued on the date defendants sold the product under the California Commercial Code. They contended, therefore, that the statute of limitations began to run on Calver's Song-Beverly Act claim in 2008. Defendants did not cite any particular section of the Commercial Code at the hearing. Their briefs, however, reference Commercial Code § 2725, which the court cites above. Section 2725 provides
. Id. at 21.
. Id.
. Id.., ¶ 3.
. Id., ¶¶ 5-6.
. Id., ¶ 57.
. Id.
. VW Group Motion at 23.
. Id.
