Hobbs v. General Motors Corp.Hobbs v. General Motors Corp.
MEMORANDUM OPINION AND ORDER
I. FACTS AND PROCEDURAL HISTORY
This case is before the court on a Motion to Dismiss, which has been converted by Order of this court into a Motion for Summary Judgment, filed by the Defendant, General Motors Corporation (“GM”) on March 7, 2000 (Do.# 36) as to Count I of the Second Amended Complaint, and GM’s Supplemental Motion for Summary Judgment on Count I of the Second Amended Complaint (Do.# 107).
The Plaintiffs originally filed this case on August 25, 1999. The Plaintiffs subsequently filed a First and Second Amended Complaint. , In the Second Amended Complaint, the Plaintiffs bring claims for breach of contract (Count I), unjust enrichment (Count II), breach of the implied warranty of merchantability under Uniform Commercial Code (“U.C.C.”) statutes and the Louisiana Civil Code (Count III), and negligent, reckless or willful misrepresentation (Count IV).
On December 28, 2000, the Court denied in part and granted in part GM’s initial Motion to Dismiss, which was converted into a Motion for Summary Judgment. The court concluded that the Plaintiffs had alleged facts and made arguments to support what was in essence a breach of express warranty claim, although the Plaintiffs had not explicitly described the claim as an express warranty claim in the Complaint as amended. Rather than deny GM’s motion as to this claim, based solely on the fact that GM had not advanced arguments with regard to an express warranty claim, the court gave GM additional time in which to provide arguments in support of its Motion for Summary Judgment as to an express warranty claim, and gave the Plaintiffs time in which to respond to such a Motion. 1
The Plaintiffs’ claims in this case center around their contention that GM misrepresented the nature of the spare tire with which it equipped the Chevrolet Impala SS (“Impala”) during the years 1994-1996. Amber L. Hobbs (“Hobbs”) bought her Impala, VIN # 1G1BL62P4SR126937, in January of 1995 from a GM dealer. Alex Manci (“Manci”) bought his Impala, VIN # 1G1BL52P8TR111637, in October of 1995 from a GM dealer.
The window stickers on the Impalas listed a “full size spare” as a feature of the
II. SUMMARY JUDGMENT STANDARD
Under Rule 56(c) of the Federal Rules of Civil Procedure, summary judgment is proper “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.”
Celotex Corp. v. Catrett,
The party asking for summary judgment “always bears the initial responsibility of informing the district court of the basis for its motion, and identifying those portions of the ‘pleadings, depositions, answers to interrogatories, and admissions on. file, together with the affidavits, if any,’ which it believes demonstrate the absence of a genuine issue of material fact.”
Id.
at 323,
Once the moving party has met its burden, Rule 56(e) “requires the nonmoving party to go beyond the pleadings and by [its] own affidavits, or by the ‘depositions, answers to interrogatories, and admissions on file,’ designate ‘specific facts showing that there is a genuine issue for trial.’ ”
Id.
at 324,
After the nonmoving party has responded to the motion for summary judgment, the court must grant summary judgment if there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c).
III. DISCUSSION
In initially ruling on GM’s Motion for Summary Judgment, the court, relying on
Rhode v. E & T Investments, Inc.,
The court will begin with the claim brought by Plaintiff Hobbs, which the parties do not dispute is governed by Alabama law.
Under the Alabama Code:
(1) Express warranties by the seller are created as follows:
(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.
(2) It is not necessary to the creation of an express warranty that the seller use formal words such as “warrant” or “guarantee” or that he have a specific intention to make a warranty, but an affirmation merely of the value of the goods or a statement purporting to be merely the seller’s opinion or commendation of the goods does not create a warranty.
Ala.Code § 7-2-313.
When courts apply such statutory language to statements made to buyers to determine whether an express warranty has been created, they often focus on the difference between statements of fact and statements of opinion or mere “puffing.”
See
1 James J. White & Robert S. Summers, Uniform' Commercial Code § 9-2 (4th ed.1995) (collecting cases which analyze the difference between a statement that is a statement of fact and a statement which is mere “puffing” in deciding whether an express warranty has been made). If the statements are statements of fact, and not mere “puffing,” courts have interpreted those statements to be express warranties.
Id.
The United States Supreme Court has explained, in the context of determining whether an express warranty claim is preempted by federal law, that under a state statute which provides that an express warranty is created if it is an affirmation of fact which becomes part of the basis of the bargain, advertising by a manufacturer gives rise to an express warranty that is imposed, not by state law, but by the manufacturer itself.
See Cipollone v. Liggett Group, Inc.,
These concepts have been applied by the Alabama Supreme Court in recognizing that affirmative statements made in a product brochure can constitute an express warranty.
See Ricwil, Inc. v. S.L.
The type of statement at issue in this case, that is, the statement in the window sticker that the Impala was equipped with a “full size spare,” and possibly the diagram in the Owner’s Manual indicating that the spare tire could be included in a regular tire rotation pattern, could constitute express warranties under this statutory provision. In other words, the statements are statements of fact, and if they became a part of the basis of the bargain, could be express warranties. There is also evidence, at least with regard to the statement on the window sticker, that the statement became a part of the basis of the bargain, as Manci has stated in an affidavit that he relied on the representation that the Impala was equipped with a full-size spare. Such evidence, while subject to credibility determinations by the trier of fact at trial, creates a question of fact as to reliance sufficient to establish that the representation was a basis of the bargain.
See Rudder v. Kmart Corp.,
The analysis in this case is complicated, however, by the fact that, as GM points out, GM is not a seller of the Impala SS automobiles. The statutory provision which would allow for the “full size spare” statement to be identified as a basis for liability in contract, rather than just in tort, governs “sellers” and does not expressly apply to GM. There is support for the idea, however, that such liability can still be imposed on what the literature interpreting the UCC calls a “remote manufacturer.” See E. Berton Spence, “Freedom of Warranty: The Cáse Against Application of Alabama’s UCC to Express Warranties of Remote Manufacturers,” 50 Ala.L.Rev. 509 (1999). A “remote manufacturer” has been identified as being a manufacturer who is not involved in any transaction with and, therefore, is not in privity with the buyer. Id. at' 510.
Commentary on the UCC has identified a trend toward relaxing requirements of privity in the context of express warranties. One commentator has determined that many courts have allowed the privity requirement to be relaxed in situations in which the advertising of a remote manufacturer is designed to induce a consumer to buy certain goods. 1 Hawkland Uniform Commercial Code Series § 2-313:09 (2000) (collecting cases). Under this view of applicable case law, a manufacturer can be found to have created an express warranty, even though the consumer did not buy the goods directly from the manufacturer. Id.
One case in particular illustrates the reasoning for such application of these express warranty concepts to remote manufacturers. In
Connick v. Suzuki Motor Co., Ltd.,
The authority within the UCC for attributing such liability is said to be derived from a Comment to the UCC. As explained in the commentary on the UCC, because a UCC Comment states that warranties need not be confined to either sales contracts or to direct parties of such contracts, a sale is not necessary to bring the express warranty concepts into operation. 1 Hawkland UCC Series § 2-313:09.
The parties have not addressed the applicability of these concepts under Alabama law. Through its own research, the court has found no Alabama cases which directly answer whether Alabama law would allow for liability to be imposed on a manufacturer for an affirmative statement of fact which became a part of the basis of a bargain, but the court is aware of two cases which touch on this issue.
In the first of these two cases, the Alabama Supreme Court defined the scope of privity which exists between a buyer and a remote manufacturer. In
Johnson v. Anderson Ford, Inc.,
The second case which touches on relevant issues in this case is the
Ricwil
decision. As earlier stated, in
Ricwil,
the Alabama Supreme Court determined that a product brochure created an express warranty that was in addition to the general warranty against defects.
Ricwil,
We note that Dowdy [the sales representative] argues that the trial court erred in submitting the express warranty theory to the jury as against it because, it argues, it was not a ‘seller’ and it did not make the written descriptions of the Copper-Gard system contained in the product brochure. To the extent that submission of this theory to the jury against Dowdy was error, we deem it merely harmless error, given the trialcourt’s entry of judgment for Dowdy on its cross-claim against Ricwil.
Id. at 1131 n. 1. Of course, through this discussion, the court raises, but does not answer, the question of whether the unintentional creation of an express warranty can be the basis for liability for one who is not a “seller” under the UCC.
The court also notes that the comment in the Alabama UCC states as follows:
the warranty sections of this Article are not designed in any way to disturb those lines of case law growth which have recognized that warranties need not be confined either to sales contracts or to the direct parties to such a contract. They may arise in other appropriate circumstances such as in the case of bail-ments for hire.... The provisions of Section 7-2-318 on third party beneficiaries expressly recognize this case law development within one particular area. Beyond that, the matter is left to the case law with the intention that the policies of this Act may offer useful guidelines in dealing with further cases as they arise.
Ala.Code § 7-2-313, Comment 2.
The court takes from this discussion the idea that the extension of the UCC concepts to a non-sales relationship must come from the case law. The case law discussed, however, specifically the Johnson decision which places limits on manufacturer for warranty liability, and the Ricwil decision which indicates that there may be a willingness to impose liability on a remote manufacturer for affirmative statements of fact, does no definitively state whether a remote manufacturer can be held liable in contract for creating an express warranty by making a statement of fact or promise which becomes a part of the basis of the bargain. The court finds that it need not answer this question under Alabama law, however, because even assuming that the UCC express warranty concepts can be applied to a remote manufacturer, Manci has failed to create a question of fact as to whether he would be entitled to recover under the requirements for pursuing such a theory.
In its Supplemental Motion for Summary Judgment, GM argues that the Plaintiffs must, and failed to, give timely notice of a breach of express warranty under Alabama’s UCC § 2-607. 2 According to GM, filing a lawsuit does not satisfy the UCC’s notice requirement. The Plaintiffs do not respond to this argument in any way, other than to point to out that in an earlier-filed brief the Plaintiff's stated that they may have inartfully pled a claim which should have been an express warranty claim.
Under Alabama law, notice of breach is a condition precedent to bringing a breach of warranty action, which must be affirmatively pleaded in the complaint.
Hart v. Yamaha-Parts Distributors, Inc.,
There are Alabama cases which have abrogated the notice requirement for bringing warranty claims in certain circumstances. The Alabama Supreme Court has determined that notice need not be given by a warranty beneficiary who suffers a personal injury.
Simmons v. Clemco Industries,
In a later decision which did not involve personal injury, the Alabama Supreme Court imposed a notice requirement and again indicated the importance which it places on the policies behind the UCC notice requirement. In
Parker v. Bell Ford, Inc.,
A federal district court in this circuit has also stated, albeit in dicta, that under Alabama law, if a plaintiff is a buyer, and not a third party beneficiary of a consumer warranty, the plaintiff must notify the seller of an alleged breach of warranty before being allowed to pursue a warranty action against the remote manufacturer.
Snell v. G.D. Searle & Co.,
Of those courts which do not require notice to be given to the manufacturer, the majority appear not to require notice on the theory that notice to the seller, which could be passed on to the manufacturer, was sufficient.
See generally
Wanda Wakefield, “Necessity that Buyer of Goods Give Notice of Breach of Warranty to Manufacturer under UCC § 2-607,”
In addition to these considerations, the court is also persuaded by the view of some leading commentators on this issue that a non-privity consumer buyer must timely notify a remote manufacturer of alleged defects, at least when the buyer seeks recovery for economic loss, because
Having determined that notice is required, the court now turns to the issue of the sufficiency of the notice which was provided in this case. The court recognizes that, generally speaking, the issue of sufficiency of notice is a question of fact for a jury to determine. Where, however, no notice is given, there is no issue of sufficiency for a jury to determine.
See Parker,
In this case, the Plaintiffs have not responded to GM’s argument that they did not provide notice of the alleged breach of the express warranty that the Impala came equipped with a “full size spare.” The Complaints contain no allegation of any notice given GM. There is also no allegation that notice was given to the direct seller. Therefore, whether the rule is that notice must be given to the seller, or whether the rule is that notice must be given directly to the manufacturer, the only possible notice given by the Plaintiffs in this case is the Complaint and the Amended Complaints which were filed by the Plaintiffs.
In the Alabama Supreme Court’s
Parker
decision, a plaintiff had filed a complaint against a car dealership and a manufacturer. The court explained that the facts of the case before it were to be distinguished from an earlier decision wherein the question of sufficiency of notice was to be presented to a jury because “[i]n this case no notice was given.”
Parker,
In addition, the Illinois Supreme Court, in the
Connick
decision, also concluded not only that notice had to be given to the remote manufacturer to pursue the express warranty claim, but also that the filing of the lawsuit was insufficient to serve as notice.
Id.
The
Connick
court reasoned that the actual filing of the lawsuit is only sufficient notice where personal injuries are involved, because where no personal injuries are involved, the UCC indicates a preference that contract damages for breach be cured without a lawsuit.
Connick,
Accordingly, this court concludes that the mere filing of a lawsuit in this case did not constitute notice of breach under Alabama law. Assuming, therefore, that a
The express warranty claim brought by Plaintiff Hobbs is governed not by Alabama law, but by Louisiana law. GM points out that the cause of action for breach of express warranty under Louisiana law adopts the prescriptive period for redhibition.
See Manning v. Scott-Hixson-Hopkins, Inc.,
Plaintiff Hobbs has not responded to the Supplemental Motion for Summary Judgment on this ground. The evidence before this court is that Hobbs purchased her Impala in January 1995, and that sometime in mid-1997, the spare tire was used to replace a flat tire on her Impala. Hobbs Deposition, pages 50, 55-59. The Complaint was filed in this case in August 1999. Under the statutory prescription period for redhibition, therefore, Hobbs’ claim either prescribed four years after she purchased her car in January of 1995, or one yeár after she used the spare tire in mid-August 1997. Accordingly, Hobbs’ claim prescribed under the Louisiana statute and summary judgment is due to be GRANTED to GM on Hobbs’ claim in Count I of the Complaint, as amended.
IV. CONCLUSION
For the reasons discussed above, it is hereby ORDERED as follows:
1. The Motion to Dismiss which this court converted to a Motion for Summary Judgment (Doc. # 36), for which this court deferred ruling as to Count 1, and the Supplemental Motion for Summary Judgment as to Count I (Doc. # 107), are GRANTED and judgment is entered in favor of GM and against Plaintiffs Hobbs and Manci on Count I of the Complaint, as amended.
2. The case will proceed on Plaintiff Manci’s misrepresentation and unjust enrichment claims.
Notes
. The court has addressed the jurisdictional question raised by the Plaintiffs in their response in a separate Order filed on this date.
. The Alabama Code provides
Where a tender has been accepted:
(a) The buyer must within a reasonable time after he discovers or should have discovered any breach notify the seller of breach or be barred from any remedy ...
Ala.Code § 7-2-607(3)(a).
. The court also notes, although it does not decide the issue of sufficiency of notice since no notice recognized by Alabama law was given, that it was not until this court began addressing the motions filed in this case that it even became apparent that the Plaintiffs might be pursuing an express warranty claim.