ORDER GRANTING IN PART MOTIONS TO DISMISS [DE 8, 29, 32]; CONVERTING IN PART MOTION TO DISMISS TO MOTION FOR SUMMARY JUDGMENT; SETTING BRIEFING SCHEDULE
THIS CAUSE is before the Court upon Defendant American Suzuki Motor Corpo
I. Background
The facts, as set forth in the Complaint and taken as true for the purposes of a motion to dismiss, are as follows. On March 1, 2006, Plaintiff purchased a 2006 Suzuki GSX R-1000 from Motorsports in Miami, an authorized Suzuki dealer. [Complaint, DE 1, ¶ 19]. Plaintiff was issued a written warranty 1 (“Warranty”), termed a “limited warranty” and stating that “American Suzuki warrants that each vehicle is free from defects in materials and factory workmanship, subject to the following exclusions, obligations and limitations.” [Warranty, DE 8-2, p. 4], If a defect is found, the Warranty provides for repair and replacement parts:
If an eligible defect is found, the needed repairs will be performed at no charge to you for parts or labor. Warranty repairs may be made at any authorized American Suzuki Motor Corporation motorcycle dealer in the continental United States of America. Any needed parts replacement will be made using new or remanufactured genuine Suzuki parts. If parts for the warranty repair must be ordered, you will not be required to leave your vehicle in the dealer during the order period.
[Id.]. Under “Limitations,” the Warranty states that the Warranty “does not cover incidental or consequential damage.” [Id. at p. 5]. Finally, the Warranty states that “Suzuki makes no promises or warranties other than those promises made in these limited warranty.” [Id. at p. 6].
On May 29, 2006, the frame of Plaintiffs motorcycle broke and fell apart during normal use, while the motorcycle was in motion, directly at the point where the horn hole was drilled into the frame of the motorcycle. [Complaint, DE 1, ¶ 21], Plaintiff requested that inspection and repair of the frame be conducted by Defendants’ representatives, but Plaintiffs requests for repair were refused. [Id. at ¶ 22],
Plaintiff Kirk David then brought suit against Defendants American Suzuki Mo
On his own behalf and on behalf of all other persons similarly situated nationwide, Plaintiff asserts seven causes of action: Count I — Implied Warranty of Merchantability; Count II — Express Warranty; Count III — California’s Consumer Legal Remedies Act (CLRA); Count IV — California’s Business and Professions Code Sections 17200 and 17500 (“Unfair Competition Law” or “UCL”); Count V — California’s Song-Beverly Consumer Warranty Act; Count VI — Magnuson-Moss Warranty Improvement Act; and Count VII — Unjust Enrichment. Plaintiff seeks to certify a class of “All individuals within the United States and its territories who have acquired, by lease or purchase, 2005 and/or 2006 model year Suzuki GSX-R1000 motorcycles.” [Id. at ¶ 25].
II. Standard of Review
On a motion to dismiss, the court accepts a complaint’s well-pleaded allegations as true and evaluates all inferences derived from those facts in the light most favorable to the plaintiff.
Hill v. White,
III. Analysis
Before reaching Plaintiffs specific claims for relief, I conduct a limited choice-of-law analysis and discuss standing, both of which affect multiple counts in Plaintiffs Complaint. I then evaluate each of Plaintiffs claims in turn.
A. Choice of Law
To properly evaluate reach Defendants’ Motions to Dismiss, I must determine which state’s law applies to Plaintiffs claims.
2
See, e.g., Brisson v. Ford
Here, Plaintiff brings both contract and tort-based claims. Plaintiffs implied and express warranty claims (Counts I and II), and corresponding Magnuson-Moss Warranty Improvement Act claim (Count VI) are in the nature of contract.
See Brisson,
Florida’s choice-of-law rule applies the doctrine of
lex loci contractus
to con
A similar analysis applies to Plaintiffs unjust enrichment claim (Count VII), which is also in the nature of contract.
See In re NationsRent Rental Fee Litigation,
No. 06-60924-CIV,
As discussed below, because I dismiss Plaintiffs California-law based counts— Consumer Legal Remedies Act, Unfair Competition Law and Song-Beverly Consumer Warranty Act (Counts III, IV, and V, respectively) — on alternate grounds, I do not reach a choice-of-law analysis on these counts at this juncture.
B. Standing
“A federal court not only has the power but also the obligation at any time to inquire into jurisdiction whenever the possibility that jurisdiction does not exist arises.”
Amnesty Intern., USA v. Battle,
The analytical framework for resolving standing issues requires consideration of both “constitutional” and “prudential” requirements for standing.
Young Apartments, Inc. v. Town of Jupiter, FL,
In addition to the constitutional requirements of Article III, the Supreme Court has also instructed courts to consider three prudential principles when weighing whether judicial restraint requires the dismissal of a party’s claims.
Id.
(citing
Warth,
C. Warranty-Based Claims
1. Express Warranty (Count II)
I first address Plaintiffs express warranty claim. As explained below, I conclude that, pursuant to the terms of the Warranty, Plaintiffs remedy is limited to repair or replacement parts, and I convert Defendants’ motions to dismiss this claim into motions for summary judgment so that I may consider fully the recall issued by Defendants.
In his Complaint, Plaintiff alleges Defendants breached the express warranty by failing to repair the alleged design flaw in Plaintiff David’s motorcycle. Plaintiff seeks as relief “Final injunctive relief compelling the defendant to refund the purchase price of vehicles owned by the plaintiff and the class members or, in the alternative, to replace those vehicles with substantially similar vehicles of merchantable quality.” [Complaint, DE 1, p. 19]. Under Florida law, a written warranty is treated as a contract between buyer and seller,
Brennan v. Dow Chem. Co.,
Here, the Warranty expressly states that Suzuki makes no promises or warranties other than those made in the Warranty, prescribes a remedy limited to repair or replacement of select parts, and states that it does not cover incidental or consequential damages. As conceded by Plaintiff at oral argument, 10 because the express warranty, by its terms, limits the remedy available to repairs and replacement parts, the remedy available under Plaintiffs express warranty count is limited to repairs or replacement parts. 11 Therefore, if a defect allegedly exists in the frame of the motorcycle, American Suzuki must repair that defect or replace the frame, but is under no obligation to replace the motorcycle in its entirety. To that end, Plaintiffs request for relief that Defendants “refund the purchase price” of Plaintiffs motorcycle or replace the motorcycle is unavailable under the express terms of the written warranty.
Notably, Defendants have issued a recall offering to repair or replace damage to the frame. The recall was brought to the Court’s attention by Plaintiff in his Response to Defendant Suzuki Japan’s Motion to Dismiss [DE 48]. The recall is outside of Plaintiffs Complaint, and I
According to Plaintiff, “on January 21, 2009, [Defendants] sent letters to every single member of the putative class to initiate a recall of the motorcycles for the very same defect asserted in this litigation.” [Response to Suzuki Japan’s Motion to Dismiss, DE 48, p. 2]. The recall letter, attached as an exhibit to Plaintiffs Response, applies to 2005 and 2006 GSXR1000 Motorcycles and addresses the motorcycle frame. [Recall Letter, DE 48-3, p. 8]. Specifically, the recall provides that Suzuki dealers will inspect the frame behind and below the steering neck for cracks. [Id. at 9]. “If no cracks are found, a frame reinforcement brace will be attached to the frame using bolts and epoxy adhesive”. [Id.]. If cracks are found, “the frame will be replaced with a new frame that has the reinforcement brace installed.” [Id.]. Additionally, “[i]f a customer’s motorcycle is included in this Safety Recall and they have paid for the repair or replacement of the frame due to cracking or breakage of the frame in the relevant area, they may be eligible for partial or full reimbursement.” [Id.].
Plaintiff David is facially eligible for the recall (his motorcycle is a 2006 Suzuki GSX R-1000), and the recall recognizes and seeks to address the very frame defect identified in Plaintiffs Complaint. 13 However, Plaintiff has not availed himself of the recall. During oral argument, Plaintiff conceded that, if Plaintiff were to avail himself of the recall, and Defendants were to repair Plaintiffs motorcycle, such facts would undoubtedly be relevant to my analysis of Plaintiffs Article III standing, prudential standing, and, correspondingly, mootness. Plaintiff argued, though, that the analysis depends on whether the repair offered through the recall is adequate to remedy the alleged defect.
To properly evaluate the express warranty claim in the context of the recall, I convert Defendants’ motions to dismiss Plaintiffs express warranty claim into motions for summary judgment on such claim. By converting to summary judgment and requesting more information on the recall, I do not suggest a defendant can avoid class action litigation by simply initiating a recall after commencement of a suit. However, in Plaintiff David’s case, where the express terms of the warranty limit relief to repair or replacement parts, the alleged defect is the subject of a recall, the recall purports to offer the very remedy available through the warranty, the question of the sufficiency of the recall uniformly affects all members of the class, and no injury is alleged, I conclude that the recall is highly relevant to my analysis of Plaintiffs express warranty claim.
2. Implied Warranty (Count I)
As discussed above, Florida law controls Plaintiff Davis’s implied warranty claim. Florida law requires privity of contract to sustain a breach of implied warranty claim.
15
In
Mesa v. BMW of North America,
Like the plaintiffs in
Mesa
and
Rentas,
Plaintiff David did not have privity with Defendants. David purchased his motorcycle from dealer Motorsports in Miami,
17
not from American Suzuki or Suzuki Japan, and the existence of a manufacturer’s warranty which runs to the buyer does not in and of itself establish privity.
See Bailey v. Monaco Coach Corp.,
During oral argument, Plaintiff argued for the first time that, pursuant to a line of Florida cases starting with
Hoskins v. Jackson Grain,
Subsequently, the Florida Supreme Court restored the privity requirement for an implied warranty claim in
West v. Caterpillar Tractor Company, Inc.,
The adoption of the doctrine of strict liability in tort does not result in the demise of implied warranty. If a user is injured by a defective product, but the circumstances do not create a contractual relationship with a manufacturer, then the vehicle for recovery could be strict liability in tort. If there is a contractual relationship with the manufacturer, the vehicle of implied warranty remains.
West,
The West court fundamentally altered products liability law in Florida by creating a new products liability tort action — strict liability in tort — out of the prior breach of implied warranty cases which had done away with privity of contract. In so doing, West necessarily swept away such no-privity, breach of implied warranty cases in favor of the new action of strict liability in tort. Stated differently, the doctrine of strict liability in tort supplants all no-privity, breach of implied warranty cases, because it was, in effect, created out of these cases. This ground-breaking holding, however, did not result in the demise of the contract action of breach of implied warranty, as that action remains, said the West court, where privity of contract is shown.
Id.
at 692 (holding that breach of implied warranty action “exists solely as a contract remedy which, of necessity, requires a privity of contract showing as an essential element of the action.”). The Florida Supreme Court later affirmatively adopted the Third District Court of Appeal’s opinion in
Affiliates for Evaluation. Kramer v. Piper Aircraft Corp.,
3. Magnuson Moss Warranty Act (Count VI)
The Magnuson-Moss Warranty Improvement Act (MMWA) gives consumers a private right of action against warran
D. Unjust Enrichment (Count VII)
As previously explained, Plaintiffs unjust enrichment claim sounds in contract and is therefore subject to Florida law. Under Florida law, “The elements of a claim for unjust enrichment are: (1) a benefit conferred upon the defendant by the plaintiff, (2) appreciation by the defendant of such benefit, and (3) acceptance and retention of such benefit by the defendant under such circumstances that it would be inequitable for him to retain it without paying the value thereof.”
Nautica Int’l, Inc. v. Intermarine USA, LP.,
Here, Plaintiff has failed to plead adequately unjust enrichment. The basis of Plaintiffs unjust enrichment claim is the alleged defect in the frame of the motorcycle, which is also the basis of Plaintiffs breach of express warranty claim. The unjust enrichment claim arises out of Defendants’ alleged failure to perform under the warranty, and the damages pled under unjust enrichment are not distinct from those pled under express warranty. Therefore, without determining whether Defendants have breached the express warranty, I conclude that Plaintiff has available a contractual remedy through the breach of express warranty claim. Critically, Plaintiff fails to allege that this contractual remedy is inadequate, as required to state a claim for unjust enrichment.
See Nautica Int’l, Inc.,
E. Claims Under California Law
Plaintiff David next asserts three claims under California statutes. Plaintiff, a Florida resident who purchased his motorcycle in Florida, argues that California law applies to his claims. As discussed below, because I dismiss Plaintiffs California-law based claims on alternate grounds, I do not conduct a choice-of-law analysis on these claims.
1. California’s Consumer Legal Remedies Act (CLRA) (Count III)
Plaintiff David seeks relief pursuant to California’s Consumer Legal Remedies Act (“CLRA”), which seeks to protect consumers against unfair and deceptive business practices and to provide efficient and economical procedures to secure such protection,
Buckland v. Threshold Enterprises, Ltd.,
The notice requirement mandates that a plaintiff notify the potential defendant of the particular alleged violation, and demand that the potential defendant correct, repair, replace, or otherwise rectify the goods or services alleged to be in violation. Cal. Civ.Code § 1782(a). The CLRA prescribes, “The notice shall be in writing and shall 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 within California.”
Id.
19
Compli
Here, Plaintiff does not dispute that he did not comply with the notice requirements of the CLRA. Plaintiff pleads that Defendants “have learned of [frame] failures” [DE 1, ¶ 13], Defendants had “actual constructive notice of the problem” [DE 1, ¶ 14], and Plaintiff requested inspection and repair be performed by Defendants’ representatives [DE 1, ¶ 22]. But Plaintiff does not plead notice as required by the CLRA. During oral argument, Plaintiff conceded that notice in the form of a certified letter was never sent prior to commencing suit. Although I am inclined to follow the California courts’ decisions in Cattie, Lester, and Von Grabe and dismiss Plaintiffs CLRA claim with prejudice, because Plaintiff suggested that he believes he can cure his CLRA claim by repleading as a latent defect, I will allow Plaintiff leave to amend. 20
2. California’s Unfair Competition Law (Count IV)
Plaintiff David next asserts a claim against Defendants pursuant to California’s Business and Professions Code Sections 17200 and 17500, or California’s unfair competition law (“UCL”). Section 17200 of the California UCL provides a
3. Song-Beverly Consumer Warranty Act (Count V)
I finally turn to Plaintiffs claim for relief under the Song-Beverly Consumer Warranty Act. The Song-Beverly Act applies only to consumers who took title to the goods in California. Cal. Civ. Code § 1792 (“Unless disclaimed in the manner prescribed by this chapter, every sale of consumer goods that are sold at retail
in this state
shall be accompanied by the manufacturer’s and the retail seller’s implied warranty that the goods are merchantable.” (emphasis added));
Barabino v. Dan Gamel, Inc.,
No. 04-2359-CIV,
IV. Conclusion
For the reasons stated above, I convert Defendants’ motions to dismiss Plaintiffs
ORDERED AND ADJUDGED:
1. Defendant American Suzuki Motor Corporation’s and Defendant Suzuki Motor Corporation’s Motions to Dismiss [DE 8, 29, 32] are GRANTED in PART.
2. Counts I (Implied Warranty of Merchantability), III (California’s Consumer Legal Remedies Act), IV (California’s Business and Professions Code Sections 17200 and 17500), V (California’s Song-Beverly Consumer Warranty Act), and VII (Unjust Enrichment) of Plaintiffs Complaint [DE 1] are DISMISSED WITHOUT PREJUDICE.
3. The parties are hereby put on notice that Defendants’ Motions to Dismiss Count II (Express Warranty) will be converted into Motions for Summary Judgment. The parties are therefore instructed to prepare affidavits and engage in discovery necessary to properly plead and respond to Motions for Summary Judgment.
4. Defendants shall file a supplement to their Motions or amended Motion(s) for Summary Judgment by August 31, 2009.
5. Plaintiff shall file a response to the Motion(s) for Summary Judgment by September 21, 2009.
6. Defendants shall file a reply to Plaintiffs response(s) by October 1, 2009.
7. Plaintiff may file an amended complaint after the Court’s ruling on the Motion(s) for Summary Judgment, at which point the Court will provide further clarification on which counts may be amended, and which may be dismissed with prejudice.
8. American Suzuki’s unopposed Request for Judicial Notice [DE 24] is GRANTED.
9. I reserve on American Suzuki’s Motion to Strike Plaintiffs Nationwide Class Allegations [DE 30].
Notes
. Generally, on a motion to dismiss the court is limited to the complaint and exhibits thereto. Here, Plaintiff referenced the written warranty in the Complaint, but did not attach it as an exhibit. Defendant American Suzuki attached the warranty to its Motion to Dismiss [DE 8-2), and I may consider it on a motion to dismiss because it was referenced in and is central to Plaintiff’s Complaint, and its contents are not in dispute.
See Financial Sec. Assurance, Inc. v. Stephens, Inc.,
. The parties briefed the choice-of-law issue in conjunction with Defendant’s Motion to Strike Nationwide Class Allegations [DE 30], Although it is permissible to engage in a
. The Complaint states that federal jurisdiction exists pursuant to 28 U.S.C. 1332(d)(2), the diversity statute as it pertains to class actions. [Complaint, DE 1, ¶ 8].
. The District Court of Appeal in
Rose
continues, "This court recognized in
Cunningham v. General Motors Corp.,
. In his Response to American Suzuki's Motion to Dismiss, Plaintiff states in the context if his implied warranty claim, "Assuming arguendo that the Defendant is correct that Florida breach of warranty law applies with respect to Kirk David's claim, ...” and then argues Plaintiff David's claim under Florida law. [DE 16, pp. 27-29]. Plaintiff does not offer a choice-of-law analysis to suggest that another state's laws may govern Plaintiff David’s warranty-based claims. Additionally, at oral argument, Plaintiff argued the existence of an implied warranty claim under Florida law.
. In his Response to American Suzuki’s Motion to Dismiss, Plaintiff states in the context if his unjust enrichment claim, "It is conceded that under Florida law, no remedy for unjust enrichment lies unless there is an adequate remedy at law [DE 16, p. 34].
. The parties primarily briefed standing in the context of whether Plaintiff Davis has standing to represent a nationwide class. However, as agreed to by the parties during oral argument, before I reach the question of whether named Plaintiff has standing to represent a class, I must determine whether Plaintiff David has standing to pursue his individual claims.
See Mills v. Foremost Ins. Co.,
. During oral argument, Plaintiff agreed that the remedy available under the Warranty is limited by the terms of the warranty. When the Court asked, "[WJouldn’t your remedies here be limited to what’s in the warranty?”, Plaintiffs counsel responded, "I think our count asserting express warranty would be limited by the interpretation of the warranty language and the remedies offered therein.”
. All cases decided by the United States Court of Appeals for the Fifth Circuit before September 30, 1981 are binding precedent in the Eleventh Circuit.
Bonner v. City of Prichard,
. Plaintiff agreed that his remedy on the express warranty count is limited to repairs and replacement of parts. During oral argument, upon the Court's question, "Does not the express warranty limit the remedy to repairs ... ?”, Plaintiff’s counsel stated, "I believe that it limits it to repairs and replacement of parts.”
. Where circumstances cause a limited remedy to fail of its essential purpose, alternative UCC remedies may be available. Fla. Stat. § 672.719;
Griffis v. Leisure Tyme RV, Inc.,
. If the parties present evidence outside of the pleadings, the district court must convert the motion to dismiss into a motion for summary judgment to consider that evidence.
See
Fed.R.Civ.P. 12(b)(6);
Finn v. Gunter,
. Plaintiff agreed to this at oral argument, and also concedes in his Response to Defendant Suzuki Japan’s Motion to Dismiss that the Defendants '‘initiate[d] a recall of the motorcycles for the very same defect asserted in this litigation,” and the "recall conclusively acknowledges and concedes the existence of the very defect which gives rise to the litigation.” [DE 48, pp. 2-3 (emphasis added) ].
. In converting a 12(b)(6) motion to dismiss into one for summary judgment, the court must give all parties ten-days notice that it is so converting the motion.
Donaldson
v.
Clark,
. Plaintiff concedes in his papers that "Under Florida law, privity of contract is an essential element of a claim for breach of implied warranty.” [DE 16, p. 27],
. The objective of a federal court sitting in diversity is to determine issues of state law as it believes the Florida Supreme Court would. To that end, the Eleventh Circuit has explained that, “[i]n the absence of definitive guidance from the Florida Supreme Court, we follow relevant decisions from Florida’s intermediate appellate courts.”
State Farm Fire & Cas. Co. v. Steinberg,
. Motorsports is not a named defendant in this suit.
. In its Response to American Suzuki's Motion to Dismiss, Plaintiff concedes that, “under Florida law, no remedy for unjust enrichment exists unless there is no adequate remedy at law.” [DE 16, p. 34], Plaintiff then argues that, because American Suzuki contends that an express warranty provides an adequate legal remedy, American Suzuki has admitted that there is privity between American Suzuki and Plaintiff. As discussed in my analysis of Plaintiff's express and implied warranty claim, the existence of an express warranty does not necessarily create the privity required under Florida law for an implied warranty claim. Additionally, irrespective of the adequacy of a legal remedy, Plaintiff has failed to allege that an adequate remedy at law does not exist.
Additionally, Defendant Suzuki Japan argued in its Motion to Dismiss [DE 29] that the economic loss doctrine barred Plaintiff’s UCL, CLRA, and unjust enrichment claims. In its Response to Suzuki Japan’s Motion [DE 48], Plaintiff argued against dismissal of the UCL and CLRA claims on such grounds, but did not address the unjust enrichment claim.
. This notice requirement may be waived for an action for injunctive relief. Cal. Civ.Code § 1782(d) ("Not less than 30 days after the commencement of an action for injunctive
. Through this Order, I have converted Defendants' motion to dismiss Plaintiff's express warranty claim into a motion for summary judgment to address the recall. Under Cal. Civ.Code § 1782(c), Plaintiff's claim may be barred by the recall. Cal. Civ.Code § 1782(c) states:
No action for damages may be maintained under Section 1781 upon a showing by a person alleged to have employed or committed methods, acts, or practices declared unlawful by Section 1770 that all of the following exist: (1) All consumers similarly situated have been identified, or a reasonable effort to identify such other consumers has been made; (2) All consumers so identified have been notified that upon their request the person shall make the appropriate correction, repair, replacement, or other remedy of the goods and services; (3) The correction, repair, replacement, or other remedy requested by the consumers has been, or, in a reasonable time, shall be, given; (4) The person has ceased from engaging, or if immediate cessation is impossible or unreasonably expensive under the circumstances, the person will, within a reasonable time, cease to engage, in the methods, act, or practices.
The parties have not briefed the issue, but if the recall satisfies the requirements of § 1782(c), it appears Plaintiff would be precluded from seeking damages under the CLRA.
. Plaintiff alleges that California is Defendants' primary place of business in the Implied Warranty and Express Warranty counts, not in the UCL count.
