ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFFS’ MOTION FOR CLASS CERTIFICATION
On December 10, 2010, plaintiffs David J. Keegan, Luis Garcia, Betty Kolstad, Carol Hinkle, Eric Ellis, Charles Wright, and Jonathan Zdeb filed this putative class action against American Honda Motor Co., Inc., and Honda of America Manufacturing, Inc., alleging claims under the California Consumer Legal Remedies Act (“CLRA”), the California Unfair Competition Law (“UCL”), the
On November 21, 2011, plaintiffs filed a motion for class certification under Rules 23(a) and 23(b)(3) of the Federal Rules of Civil Procedure.
I. FACTUAL BACKGROUND
A. The Complaint’s Allegations
Plaintiffs bring this action on behalf of all individuals who purchased or leased certain allegedly defective model year 2006 and 2007 Honda Civic and 2006 through 2008 Honda Civic Hybrid vehicles that were designed, manufactured, distributed, marketed, sold, and leased by defendants (collectively, the “class vehicles”).
Plaintiffs allege that Honda learned of the suspension defect through pre-release testing data, early consumer complaints to Honda and its dealers, testing conducted in response to the complaints, and “other internal sources.”
Plaintiffs contend that the defect creates a safety hazard because a driver has only three means of controlling a ear — braking, accelerating, or steering. Each is dependent on rolling friction with the ground beneath the wheels, and the only contact the vehicle has with the ground is through its tires.
The cost of repairing the defect and replacing the worn tires allegedly can run “hundreds, if not thousands, of dollars.”
Plaintiffs contend that “hundreds, if not thousands,” of purchasers and lessees of class vehicles have experienced the defect, filed complaints with the National Highway Traffic Safety Administration (“NHTSA”), and posted information about the problem on the internet.
The TSB stated that the too-short rear control arms should be replaced with longer control arms.
Although the TSB appears to concern vehicles still under warranty, plaintiffs assert that in practice, the modification is provided only to the “most persistent customers ... who visit Honda’s dealers and complain loudly enough about the Suspension Defect and the premature tire wear it causes.”
B. The Plaintiffs
The complaint was filed on behalf of seven named plaintiffs located in six different states. Although plaintiffs’ specific interactions with Honda regarding the alleged defect, and the severity of the defect they have experienced, vary, each purchased a Honda Civic from a Honda dealer and complained about premature wear of the tires. The plaintiffs are:
• David J. Keegan, a California citizen and resident of Dublin, who purchased a new 2007 Honda Civic from Dublin Honda in April 2007;32
• Luis Garcia, a New York citizen, who purchased a new 2007 Honda Civic EX on March 17, 2007;33
• Eric Ellis, a resident of Adrian, Oregon, who purchased a new 2007 Honda Civic LX from Tom Scott Honda in Nampa, Idaho on July 6, 2007;34
• Charles Wright, a citizen of Montana and resident of Missoula, who purchased a Honda Civic Hybrid from University Motors in Missoula on March 3, 2006;35
• Betty Kolstad, a citizen of California and resident of Big Ben, California, who purchased a 2006 Honda Civic from Auto West Honda in Roseville, California on October 15, 2009, with a certified pre-owned car warranty for 60 days.36
• Carol Hinkle, a citizen of North Carolina and resident of Salisbury, who purchased a Honda Civic LX at Salisbury Honda in April 2008;37
• Jonathan Zdeb, a resident of West Palm Beach, Florida, who purchased a new 2007 Honda Civic SI from Holman Honda in Fort Lauderdale, Florida in January 2007.38
C. The Nature of the Alleged Defect
According to plaintiffs, the class vehicles are designed to give the rear wheels 1.5 degrees of “negative camber.”
II. DISCUSSION
A. Legal Standard Governing Class Certification
A district court may certify a class only if: “(1) the class is so numerous that joinder of all members is impracticable; (2) there are questions of law or fact common to the class; (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class; and (4) the representative parties will fairly and adequately protect the interests of the class.” Fed. R. Civ. Proc. 23(a).
In addition, a district court must also find that at least one of the several conditions set forth in Rule 23(b) is met. “The party seeking certification bears the burden of showing that each of the four requirements of Rule 23(a) and at least one requirement of Rule 23(b) have been met.” Zinser v. Accufix Research Institute, Inc.,
Keegan seeks to certify a nationwide class of “[a]ll purchasers and lessees of any 2006 through 2007 Honda Civic and 2006 through 2008 Honda Civic Hybrid vehicles who reside in the United States.”
B. Evidentiary Objections to the Parties’ Respective Expert Reports 1. Legal Standard Governing Admissibility of Expert Reports on Class Certification Motions
Before addressing the merits of the certification motion, the court must consider the parties’ challenges under Daubert v. Merrell Dow Pharmaceuticals, Inc.,
Under Rule 702,
*515 “[i]f scientific, technical, or other specialized knowledge will assist the trier of fact to understand the evidence or to determine a fact in issue, a witness qualified as an expert by knowledge, skill, experience, training, or education, may testify thereto in the form of an opinion or otherwise, if (1) the testimony is based upon sufficient facts or data, (2) the testimony is the product of reliable principles and methods, and (3) the witness has applied the principles and methods reliably to the facts of the case.” Fed.R.Evid. 702.
See also United States v. Finley,
Before admitting expert testimony, the trial court must make “a preliminary assessment of whether the reasoning or methodology underlying the testimony is scientifically valid and of whether that reasoning or methodology properly can be applied to the facts in issue.” Daubert,
“The party offering the expert bears the burden of establishing that Rule 702 is satisfied.” Sundance Image Tech., Inc. v. Cone Editions Press, Ltd., No. CV 02-2258 JM (AJB),
“In determining whether expert testimony is admissible under Rule 702, the district court must keep in mind Rule 702’s broad parameters of reliability, relevancy, and assistance to the trier of fact.” Sementilli v. Trinidad Corp.,
2. Plaintiffs’ Expert: Gary Derian
In support of their motion, plaintiffs proffer the declaration of Gary Derian.
Derian inspected the vehicles and tires of six plaintiffs — Ellis, Garcia, Hinkle, Keegan, and Kolstad — as well as a class vehicle owned by a non-party, Derek Bronish.
Defendants challenges the admissibility of Derian’s opinion on several grounds; they attack the methodology he employed to inspect the class vehicles, the inadequacy of the sample size he used in reaching his conclusions, and the logic of his opinions.
Plaintiffs offer little explanation of the varying methods Derian used, and do not discuss at all how they may affect the consistency of his measurements. They address only Derian’s measurements of tire wear, arguing that a tread depth gauge is “not a sophisticated piece of equipment” and that there is “nothing special about the device ...”
Plaintiffs respond to defendants’ arguments in various ways. First, they minimize the import of Derian’s declaration, stating that they rely on it only for the limited purpose of establishing that the class members’ claims involve the same design defect, and that even were the court to exclude Derian’s declaration in its entirety, they can satisfy their burden of showing that certification is appropriate.
Second, plaintiffs’ contend that any concerns regarding Derian’s methodology go to the weight rather than the admissibility of his testimony. See United States v. Chischilly,
Third, and perhaps most persuasive, is plaintiffs’ assertion that Derian’s opinions are based on a range of evidence beyond the vehicle inspections and that questions about his inspection methodology do not render his opinions unreliable. Derian’s opinions, plaintiffs assert, merely “confirm” what is already established by other evidence, and are primarily helpful in “understand[ing] the evidence.”
Derian’s declaration belies this argument, as almost three of nine pages discuss the vehicle inspections he conducted. He makes repeated references to the inspections in the “Conclusions” section of the declaration, and it is evident that many of his opinions are based in substantial part on his personal inspection of the class vehicles.
The parties do not dispute Derian’s actual qualifications to offer expert opinions based on his knowledge, expertise, and experience in the field. A close examination of Derian’s declaration reveals that although many of his conclusions are based in whole or in part on his examination of plaintiffs’ and Bronish’s vehicles, some rely on documentary evidence and deposition testimony. Paragraphs 25 through 36 of the declaration, for example, offer opinions based not only on Derian’s review of evidence in the case but on the inspections as well. Paragraphs 30-32 and 35, by contrast, rely only on Derian’s experience and his review of documentary evidence, and make no mention of his vehicle inspections. Insofar as Derian’s conclusions rely on evidence outside the vehicle inspections, they are helpful to understanding the nature of the alleged defect and its potential effect on the class vehicles. Applying Rule 702, the court therefore admits paragraphs 30-32 and 35, and excludes the remainder of Derian’s declaration.
3. Defendant’s Expert: John W. Daws
Defendant’s expert is John W. Daws, who has a doctorate in mechanical engineering from Virginia Polytechnic Institute and State University.
Plaintiffs’ primary challenge to Daws’ testimony is that he did not review critical relevant information regarding the remedy Honda devised to address the alleged suspension defect. Based on his evaluation, Daws opines “the state of any single vehicle does not indicate the state of all 2006-2008 MY Honda Civic vehicles with regard to the tire wear issues described in the TSB,” and that “each of the vehicles ... is unique,” with “different issues, different history, and different utilization.”
Plaintiffs contend that, in reaching this conclusion, Daws ignored a key piece of evidence, namely, the fact that Honda engineered a single remedy for the suspension defect. Daws conceded at his deposition that altering the rear camber angle would make the class vehicles less susceptible to premature tire wear.
These arguments, however, essentially attack Daws’ conclusion, not his methodology or the reliability of his opinions. Plaintiffs ostensibly seek to discredit Daws by contending that he did not properly evaluate Honda’s internal policies; they offer no evidence that Daws failed to consider this information in reaching his conclusion, however. This reveals that their true problem with Daws’s testimony is his conclusion, which they assert is “contradicted by Honda’s own documents and his deposition testimony.”
The court therefore overrules plaintiffs’ objection and admits Daws’ testimony. It will, however, accord it only the weight it deserves.
C. Whether Keegan’s Proposed Class Should Be Certified
As noted, a district court can certify a class only if the requirements of Rule 23(a)— numerosity, commonality, typicality and adequacy of representation — are satisfied. In addition, at least one of the prerequisites set forth in Rule 23(b) must be met as well. As the Supreme Court explained:
“Rule 23(b)(1) allows a class to be maintained where ‘prosecuting separate actions by or against individual class members would create a risk of either ‘(A) inconsistent or varying adjudications,’ or ‘(B) adjudications ... that, as a practical matter, would be dispositive of the interests of the other members not parties to the individual adjudications or would substantially impair or impede[] their ability to protect their interests.’ Rule 23(b)(3) states that a class may be maintained where ‘questions of law or fact common to class members predominate over any questions affecting only individual members,’ and a class action would be ‘superior to other available methods for fairly and efficiently adjudicating the controversy.’ ” Wal-Mart Stores, Inc. v. Dukes, — U.S. -,131 S.Ct. 2541 , 2549 n. 2,180 L.Ed.2d 374 (2011).
“Rule 23 does not set forth a mere pleading standard. A party seeking class certification must affirmatively demonstrate his compliance with the Rule — that is, he must be prepared to prove that there are in fact sufficiently numerous parties, common questions of law or fact, etc.” Id. at 2551. See also Zinser,
1. Rule 23(a) Requirements
a. Whether Plaintiffs Have Identified an Ascertainable Class
Although not specifically mentioned in Rule 23, there is an additional prerequisite to certification — that the class be ascertainable. See, e.g., Lukovsky v. San Francisco, No. C 05-00389 WHA,
A class is sufficiently defined and ascertainable if it is “administratively feasible for the court to determine whether a particular individual is a member.” O’Connor,
Plaintiffs’ class definitions rely on objective criteria that are verifiable through
b. Numerosity
Under the Federal Rules of Civil Procedure, before a class can be certified, the court must determine that it is “so numerous that joinder of all members is impracticable.” See Fed.R.Civ.Proc. 23(a)(1). “Impracticability does not mean impossibility, [however,] ... only ... difficulty or inconvenience in joining all members of the class.” Harris v. Palm Springs Alpine Estates, Inc.,
Plaintiffs adduce evidence that approximately 620,000 vehicles were the subject of Honda’s 2008 TSB.
c. Commonality
Commonality requires “questions of law or fact common to the class.” See Fed. R.Civ.Proc. 23(a)(2). The commonality requirement is construed liberally, and the existence of some common legal and factual issues is sufficient. Jordan v. County of Los Angeles,
That said, the putative class’s “claims must depend upon a common contention — for example, the assertion of discriminatory bias on the part of the same supervisor. That common contention, moreover, must be of such a nature that it is capable of classwide resolution — which means that determination of its truth or falsity will resolve an issue that is central to the validity of each one of the claims in one stroke.” Dukes,
The central dispute concerning commonality in this ease turns on the nature of the purported defect. Plaintiffs contend that all class members’ claims involve the same design defect, the same warranty, and the same class vehicles. They also identify a number of purportedly common issues, including whether the class vehicles suffer from the defect in question, whether Honda knew about the defect, whether Honda breached its express warranty, and whether Honda violated the consumer protection laws of various states. The suspension defect is a design aspect of the class vehicles that allegedly gives their rear wheels too much “negative camber.”
Although defendants contend there are numerous problems with this analysis, their arguments are based on a misapprehension of what commonality demands. Defendants assert that the central “injury” in this case is not merely excessive negative camber but the premature tire wear it can cause.
“The claims of all prospective class members involve the same alleged defect, covered by the same warranty, and found in vehicles of the same make and model.” Wolin,
d. Typicality
Typicality requires a determination as to whether the named plaintiffs’ claims are typical of those of the class members they seek to represent. See Fed.R.Cxv.Proc. 23(a)(3). “[Representative claims are ‘typical’ if they are reasonably co-extensive with those of absent class members; they need not be substantially identical.” Hanlon,
“The test of typicality is whether other members have the same or similar injury, whether the action is based on conduct which is not unique to the named plaintiffs, and whether other class members have been injured by the same course of conduct.” Hanon,
Typicality may be found lacking “if ‘there is a danger that absent class members will suffer if their representative is preoccupied with defenses unique to it.’ ” Hanon,
The named plaintiffs in this case are all owners or lessees of class vehicles, who assert that they have experienced premature tire wear as alleged in the complaint.
e. Adequacy
The adequacy of representation requirement set forth in Rule 23(a)(4) involves a two-part inquiry: “(1) do the named plaintiffs and their counsel have any conflicts of interest with other class members and (2) will the named plaintiffs and their counsel prosecute the action vigorously on behalf of the class?” Hanlon,
Plaintiffs submit evidence attesting to the adequacy of the class representatives.
2. Whether Plaintiffs Have Satisfied the Requirements of Rule 23(b)(3)
Having concluded that the Rule 23(a) requirements are met, the court turns to Rule 23(b)(3).
a. Predominance
The predominance requirement is “far more demanding” than the commonality requirement of Rule 23(a). Amchem Products, Inc. v. Windsor,
The parties’ dispute concerning predominance focuses on two main subjects: (1) the interplay between the Ninth Circuit’s decision in Wolin,
i. Wolin and American Honda
Plaintiffs in Wolin asserted that their Land Rover vehicles were defective because a “geometry defect in the vehicles’ alignment ... caused uneven and premature tire wear and gave their vehicles a rough ride.”
Turning to plaintiffs’ warranty claims, the court stated that “[a]ll plaintiffs received the same allegedly defective product, and all had the same express warranty claim that the ear did not conform to the written warranty.” Id. These facts were sufficient to satisfy predominance as to claims arising from Land Rover’s general limited warranty. The court also addressed a separate tire warranty, which provided that when tire wear was necessarily caused by a vehicle defect, Land Rover would pay for new tires and/or realignment. Id. The court noted that tire wear can be caused by a variety of factors, and suggested that the causation issue might “make classwide adjudication inappropriate.” Id. As the district court had not considered this question, the court of appeals directed it to examine the issue on remand. Id.
Wolin appears to be on all fours with this case. In considering similar facts, the Ninth Circuit’s analysis focused on the alleged design defect and held that its existence was enough to support a finding of predominance. See id. (“Common issues predominate such as whether Land Rover was aware of the existence of the alleged defect, whether Land Rover had a duty to disclose its knowledge and whether it violated consumer protection laws when it failed to do so”). It further held that the presence or absence of tire wear on each class member’s vehicle, i.e., whether the defect had manifested, went to the merits of the claim and did not overlap with the predominance inquiry. Id.
Defendants argue that Wolin is distinguishable because the court there applied Florida and Michigan law, not California law. They cite American Honda Motor Co., decided a few months ago, which distinguished Wolin on precisely this basis.
The trial court granted certification, relying heavily on the Ninth Circuit’s opinion in Wolin, but the Court of Appeal reversed, disagreeing with WoZm’s conclusion that to secure certification of a class, plaintiffs did not need to demonstrate that the defect in their vehicles was “substantially certain to manifest in a future malfunction.” Id. at 1375,
Applying this rule, the Court of Appeal concluded that plaintiff had failed to adduce evidence that the class vehicles suffered from
Similar problems afflicted plaintiffs UCL claim. The Court of Appeal held that variability in the representations Honda and its dealers made to the class members meant that Honda’s purported failure to disclose the defect was not subject to common proof across the class. It noted that one class member had been told that the problem would “go away” in time, another had been told that the problem was “characteristic of the vehicle,” and still another was informed that a TSB had advised technicians to switch out the transmission fluid. Id. Some class members, moreover, never contacted Honda or its dealers about the third gear problem, and therefore were “never exposed to [any] alleged misrepresentation ].” Id. Given the differences in what class members were told, the Court of Appeal held that individualized issues precluded a finding of predominance.
The parties dispute the import of Wolin and American Honda Motor Co. because they dispute the nature of the defect that has been alleged in this ease. Plaintiffs contend that all of the class vehicles suffer from the same design defect, namely, a specification that requires setting the rear wheel suspension so that the rear tires have 1.5 degrees of negative camber.
The question, therefore, becomes whether under Wolin, the fact that all class vehicles suffer from the same alleged design defect— rear tires that have 1.5 negative camber — is enough to show predominance and warrant certification, or whether under American Honda Motor Co., variation in the ways the alleged defect manifests defeats predominance.
In attempting to reconcile the competing authority, the court notes first that Wolin is
American Honda Motor Co. constitutes persuasive authority as to certain matters, however — i.e., what proof is needed under California law to prove a breach of warranty claim and a violation of the UCL. The case does not discuss CLRA claims such as those asserted here, however. Moreover, as respects plaintiffs’ UCL claim, the American Honda Motor Co. court did not address the California Supreme Court’s decision in In re Tobacco II Cases,
ii. The CLRA Claim
“A CLRA claim ... requires each class member to have an actual injury caused by the unlawful practice.” Stearns v. Ticketmaster Corp.,
The court’s earlier order on defendants’ motion to dismiss identified the “root cause of the problem” about which plaintiffs complain as the class vehicles’ rear suspension; it concluded plaintiffs had adequately alleged that a defect in the rear suspension posed “safety concerns,” such that defendants’ failure to disclose it could constitute a material omission. Plaintiffs assert that the design defect causes the vehicles to exhibit excessive negative camber, which in turn leads to problems such as disruptive tire noise and excessive tire wear, the last of which may pose safety hazards.
As respects design tolerances, it is evident that even though the back wheels of the class vehicles were designed to have 1.5 degrees of negative camber, as manufactured, not all class vehicles have that precise amount of camber.
Plaintiffs counter with evidence that the class vehicles experience premature or uneven tire wear across a range of negative camber readings, i.e., 1.0 to 2.25 degrees of negative camber. This range coincides with most of the design tolerance band.
Defendants fare better in arguing that plaintiffs have failed to adduce evidence that all class vehicles are likely to exhibit the safety defect pled, and in showing that premature tire wear is difficult to attribute to a single cause. As a first step in evaluating these arguments, it is useful to clarify the relevance of tire wear to plaintiffs’ CLRA claim. As noted, the defect plaintiffs allege is a design specification that requires the back tires of each class vehicle to have 1.5 degrees of negative camber (within certain design tolerances). There is no dispute that this specification is common to the entire class of vehicles. Plaintiffs are thus correct that defendants repeatedly “confuse!] the defect at issue ... with the consequences of that defect, which include!] premature or uneven tire wear.”
!27] Nonetheless, whether class vehicles are likely to exhibit excess tire wear posing safety hazards such as tire blowouts and accidents is relevant assessing whether plaintiffs can prove causation on a classwide basis. Under the CLRA, causation can be shown as to an entire class by proving materiality. Steams,
Whether an omission is material is a fact-intensive question that asks whether “a reasonable man would attach importance to its existence or nonexistence in determining his choice of action in the transaction in question.” In re Steroid Hormone Product Cases,
While defendants’ expert has adduced some evidence that premature tire wear has a number of causes,
Although the Wolin court noted that “early tire wear cases [can] be particularly problematic for plaintiffs seeking class certification,” it was not persuaded by “Land Rover’s suggestion that automobile defect cases can categorically never be certified as a class.” Id. Rather, it held that while “individual factors may affect premature tire wear, they do not affect whether the vehicles were sold with an alignment defect.” Id. Following the Ninth Circuit’s logic, plaintiffs alleging a design defect that manifests in tire wear may be able to show that class vehicles are likely to exhibit tire wear as a result of the defect, e.g., by introducing evidence such as TSBs, consumer complaints, warranty data, internal reports, and/or expert testimony. If a jury finds such proof convincing, then materiality would be proved because the likelihood that such wear might occur would have been material to a reasonable consumer.
Defendants asserted in their briefs and at oral argument that to succeed on the CLRA claim, plaintiffs would have to prove that each class vehicle experienced premature or uneven tire wear as a result of the purported design defect.
The CLRA prohibits the failure to disclose “material” facts. Here, whether class vehicles have a propensity or likelihood to experience excessive and premature tire wear, even if each one does not necessarily manifest the problem, will be a question of fact for the jury. Cf. Collins v. eMachines, Inc.,
Moreover, plaintiffs’ claim is not that each and every class vehicle exhibited premature and excessive tire wear; it is that as a result of the design defect, class vehicles had a likelihood of doing so, and that a reasonable consumer would have behaved differently had he or she known of this propensity. Defendants argue that plaintiffs will have difficulty proving this assertion. But it would be error to “equate a ‘rigorous analysis’ with an in-depth examination of the underlying merits____The district court is required to examine the merits of the underlying claim in this context, only inasmuch as it must determine whether common questions exist; not to determine whether class members [can] actually prevail on the merits of their claims.” Ellis,
Consequently, the court concludes that plaintiffs have satisfied the predominance requirement as respects their CLRA claim. See Wolin,
iii. The UCL Claim
The court concluded in its prior order that plaintiffs could base their UCL claim on defendants’ alleged violation of the CLRA, since the UCL penalizes behavior that is “unlawful,” “unfair,” or “fraudulent.” Cel-Tech Communications, Inc. v. Los Angeles Cellular Telephone Co.,
American Honda Motor Co. is not to the contrary. First, that case involved alleged affirmative representations to class members, while this case involves an alleged across-the-board failure to disclose.
As is clear from the California Supreme Court’s decision in In re Tobacco II Cases,
Consequently, the court concludes that plaintiffs have satisfied the predominance requirement with respect to their UCL claim.
iv. Express Warranty
The substantive requirements of California law, as articulated in American Honda Motor Co. and Hicks, do not require proof of a current malfunction to assert breach of express warranty claims, but do require proof that the defect is “substantially certain to manifest in a future malfunction.” American Honda Motor Co.,
The question is whether this requirement of substantive California law necessitates that plaintiffs show more to certify a breach of warranty class than to secure certification of classes asserting claims under California’s consumer protection statutes. Defendants argue that common issues do not predominate on the breach of express warranty claim because class vehicles do not uniformly exhibit the type of premature or excessive tire wear alleged in the complaint. Defendants’ “best estimate,” based on the evidence they have adduced, is that fewer than ten percent of the class vehicles have experienced premature tire wear as a result of negative camber.
The question thus becomes whether, in light of the Ninth Circuit’s holding in Wolin and the decisions of California Courts of Appeal in Hicks and American Honda Motor Co., plaintiffs’ allegation that all class vehicles have a common defect suffices to show predominance, or whether, to satisfy predominance, it is also necessary to show that the alleged defect is substantially certain to result in malfunction during the useful life of the vehicle. Wolin, which applied the substantive law of Michigan and Florida, held that predominance was satisfied because plaintiffs asserted that all class vehicles suffered from the same defect and that Land Rover had breached the terms of its warranty by failing to repair or replace the relevant components of the cars. See
Here, as in Wolin, plaintiffs allege that all class vehicles have the same defect and that defendants breached an express warranty by refusing to repair or replace the rear suspension and control arm free of charge and replace tires damaged as a result of the defect.
Relying heavily on American Honda, defendants contend that although this question goes to the merits of plaintiffs’ breach of express warranty claim, it overlaps with the predominance inquiry. Compare Wolin,
Even if American Honda Motor Co. correctly applies California procedural law, however, federal procedural law governs in
Relying on Hicks, another California Court of Appeal came to just this conclusion. In Hewlett-Packard Co., plaintiffs sought to certify a class of Hewlett-Packard laptop purchasers who claimed that the computers had defective inverters that could potentially cause dim displays.
“Contrary to HP’s argument in this case, whether or not the alleged defects occurred during the warranty period does not affect a finding of community of interest in the present case. Plaintiffs here allege a common defect in the HP notebook computers and their display screens. In order to prove that defect, plaintiffs will present evidence of call records reporting dim displays, records of repairs of faulty inverters, service notes documenting defects that were known to HP, and an HP policy that all notebooks returned for any reason would have their inverter repaired, regardless of whether the screen actually failed. A jury could find, based on this evidence, that the inverters in question were defective and that HP is liable for the defect. The issue of whether the inverters were defective is appropriate for a joint trial with common proof. For example, if the jury finds that the inverters were defective, then each plaintiff would not need to separately prove that his or her inverter was defective, only that he or she had a computer that contained that type of inverter.” Id. at 96,83 Cal.Rptr.3d 836 .
Although the Hewlett-Packard court did not use the “substantially certain” test articulated in Hicks and American Honda Motor Co., it appears to have assumed that evidence that a substantial number of laptops had manifested the defect would be a sufficient basis upon which a jury could conclude that the class should prevail. It thus appears to have utilized a legal test that was similar, if not identical, to that employed by the Hicks and American Honda Motor Co. courts.
Consequently, applying federal procedural law as articulated in Wolin, and attempting to harmonize California authority and apply California substantive law, the court concludes that plaintiffs have adequately demonstrated predominance with respect to the express warranty claim. That claim will succeed if plaintiffs are able at trial to show that all class vehicles are substantially certain to manifest the excessive and premature tire wear and loud and disruptive noise alleged in the complaint. It will fail if such evidence is lacking. As the Ninth Circuit has observed,
“a court can never be assured that a plaintiff will prevail on a given legal theory prior to a dispositive ruling on the merits, and a full inquiry into the merits of a putative class’s legal claims is precisely what both the Supreme Court and we have cautioned is not appropriate for a Rule 23 certification inquiry.” United Steel, Paper, & Forestry,593 F.3d at 809 .
As noted, the United Steel court held that it was legal error for the district court to conclude “that merely because it was not assured that plaintiffs would prevail on then-primary legal theory, that theory was not the appropriate basis for the predominance inquiry.” Id. While class certification requires some analysis regarding the merits of plaintiffs’ express warranty claim, the predomi
v. Implied Warranty
“[A]n implied warranty of merchantability guarantees that ‘consumer goods meet each of the following: (1) Pass without objection in the trade under the contract description; (2) Are fit for the ordinary purposes for which such goods are used; (3) Are adequately contained, packaged, and labeled; [and] (4) Conform to the promises or affirmations of fact made on the container or label.’ ” Cal. Civ. Code § 1791.1(a). “Unlike express warranties, which are basically contractual in nature, the implied warranty of merchantability arises by operation of law____[I]t provides for a minimum level of quality.” American Suzuki Motor Corp. v. Superior Court,
The court’s analysis regarding plaintiffs’ express warranty claim dictates the outcome with respect to their breach of implied warranty claim, since eases such as Hicks have applied the “substantial certainty” requirement to both express and implied warranty claims. See Hicks,
As with plaintiffs’ express warranty claim, if defendants can demonstrate that the design specification requiring 1.5 degrees of negative camber is not “substantially certain” to result in the excessive and premature tire wear about which plaintiffs complain, they will prevail. If plaintiffs, on the other hand, can demonstrate that the specification is substantially certain to result in premature and excessive tire wear that renders the vehicles unfit for driving, they will prevail. The breach of implied warranty claim is therefore susceptible of common proof, and the court will certify the implied warranty claim for class treatment.
vi. The Applicability of California Law to Residents of Other States
Defendants also oppose certification of the CLRA, UCL, express warranty and implied warranty claims on the basis that plaintiffs seek to apply California law to individuals who reside outside the state and purchased their cars outside the state. Plaintiffs contend that due process and California choice of law principles permit the application of California law to such individuals. Although
Following the motion hearing and in light of Mazza, plaintiffs modified their position regarding the classes to be certified. They no longer seek to certify a nationwide class, and instead request that the court certify a UCL/CLRA class of California, Florida and New York residents, an express warranty class of California, New York, and North Carolina residents, and an implied warranty class of California residents.
aa. Due Process Requirements
“To apply California law to claims by a class of nonresidents without violating due process, the court must find that California has a ‘ “significant contact or significant aggregation of contacts” to the claims asserted by each member of the plaintiff class, contacts “creating state interests,” in order to ensure that the choice of [the forum state’s] law is not arbitrary or unfair.’ ” Keilholtz,
Plaintiffs adduce evidence that defendants have substantial contacts with California. They note that they conduct a significant amount of business and run nationwide operations from the state.
Based on the totality of the evidence plaintiffs have adduced, the court concludes that plaintiffs have made a sufficient showing that the application of California law to non-California residents would not offend the class members’ due process rights; in this regard, the court follows other courts that have reached similar conclusions based on parallel facts. See Wolph v. Acer America Corp.,
bb. California Choice-of-Law Analysis
Since application of California law to the claims of the class does not violate due process, defendants bear the burden of showing that foreign law, rather than California law, should apply. Keilholtz,
California choice-of-law analysis proceeds in three steps:
“First, the court determines whether the relevant law of each of the potentially affected jurisdictions with regard to the particular issue in question is the same or different. Second, if there is a difference, the court examines each jurisdiction’s interest in the application of its own law under the circumstances of the particular ease to determine whether a true conflict exists. Third, if the court finds that there is a true conflict, it carefully evaluates and compares the nature and strength of the interest of each jurisdiction in the application of its own law to determine which state’s interest would be more impaired if its policy were subordinated to the policy*540 of the other state, and then ultimately applies the law of the state whose interest would be more impaired if its law were not applied.” McCann v. Foster Wheeler LLC,48 Cal.4th 68 , 81-82,105 Cal.Rptr.3d 378 ,225 P.3d 516 (2010).
The Ninth Circuit has noted its disapproval of applying California consumer protection law such as the UCL and CLRA to residents of other states who conducted transactions in other states. Recently, in Mazza,
The Ninth Circuit warned that “[cjonsumer protection laws are a creature of the state in which they are fashioned. They may impose or not impose liability depending on policy choices made by state legislatures or, if the legislators left a gap or ambiguity, by state supreme courts.” Id. It further noted that “once violation is established, there are also material differences in the remedies given by state laws.” Id. The court concluded that such differences were “material.” Id.
The Mazza court next addressed the interest foreign jurisdictions have in having their laws enforced, and noted that “each state has an interest in setting the appropriate level of liability for companies conducting business within its territory.” Id. at 592. “Maximizing consumer and business welfare,” the court stated, “requires balancing competing interests,” and each state is entitled to strike the balance as it sees fit. Id. It further noted: “As it is the various states of our union that may feel the impact of such effects, it is the policy makers within those states ... who are entitled to set the proper balance and boundaries between maintaining consumer protection ... and encouraging and attractive business climate.” Id.
Turning to the third step of the choice-of-law analysis, the Mazza court concluded that “each foreign state has an interest in applying its law to transactions within its borders and that, if California law were applied to the entire class, foreign states would be impaired in their ability to calibrate liability to foster commerce.” Id. at 593. It observed that “foreign states have a strong interest in the application of their laws to transactions between their citizens and corporations doing business within their state,” id. at 594, and concluded that applying California law to non-residents who purchased their cars outside the state was unwarranted as a consequence.
While Mazza did not address warranty law, the Ninth Circuit’s caution against the unwarranted extraterritorial application of California law applies to such a claim as well. As noted, plaintiffs have modified their proposed classes in an attempt to eliminate any material differences in state law.
(1) The Consumer Protection Class
Plaintiffs now seek to certify a consumer protection class comprised of California, Florida, and New York residents only; they no longer seek to include residents of Montana, North Carolina, and Idaho as class members.
Defendants, as the parties asserting that variations in state law defeat predominance, bear the burden on the issue. They identify two purportedly material differences in the consumer protection laws of California, New York and Florida.
New York requires that a defendant’s conduct be materially deceptive or misleading and that the deception have proximately caused plaintiffs injury. See Goshen v. Mut. Life Ins. Co.,
Similarly, in Florida “a party asserting a deceptive trade practice claim need not show actual reliance on the representation or omission at issue.” Office of Atty. Gen., Dept. of Legal Affairs v. Wyndham Int’l, Inc.,
With small differences in wording, all three states appear to employ the same causation and reliance standard. The touchstone of each state’s law is whether a reasonable person would have found the relevant omission misleading. See Oswego Laborers’,
While defendants argue that “distinctions in the causation standard could be disposi-tive” given “significant questions regarding whether the allegedly omitted facts were material and misleading,”
The court is mindful of the Ninth Circuit’s warning that differences in state law concerning the need for proof of reliance can “spell the difference between the success and failure of the claim.” Mazza,
In this case, by contrast, plaintiffs allege that defendants did not disclose to any member of the class information regarding the potential for excessive and premature tire wear caused by negative camber. There is no question of different statements being made to different groups of consumers, or certain class members being exposed to information others were not. Consequently, the court concludes that any potential differences in state law concerning the proof of reliance that is necessary to prevail on consumer protection claims do not defeat predominance in this ease.
Defendants also contend that differences in the states’ respective statutes of limitations defeat predominance. The limitations period for the UCL is four years, Cal. Bus. & Prof. Code § 17208, and the limitations period for the CLRA is three years, Cal. Civ.Code § 1783. Florida gives plaintiffs four years to bring claims under its consumer fraud statutes, see Fla. Stat. § 95.11(3)(f), while New York affords claimants only three years to file suit, see Gaidon v. Guardian Life Ins. Co.,
Defendants contend that, in addition to differing limitations statutes, the point at which the statute of limitations commences to run on a consumer protection claim differs from state to state. Specifically, the jurisdictions differ as to whether the trigger for commencement of the limitations period is the date of discovery. The Ninth Circuit has held that UCL claims “are subject to a four-year statute of limitations which began to run on the date the cause of action accrued, not on the date of discovery.” Karl Storz Endoscopy-America, Inc. v. Surgical Tech., Inc.,
Florida applies the more straightforward rule that the cause of action accrues on the date of sale. See S. Motor Co. v. Doktorczyk,
Here, however, plaintiffs allege that defendants’ fraud resulted in actual damages when the class members paid full price for allegedly defective vehicles.
Therefore, the main differences in the applicable statutes of limitations is the length of the particular limitations period, and application of the delayed discovery rule. As noted, California’s UCL and CLRA differ on this point, as a UCL cause of action accrues when the unfair, fraudulent or unlawful practice occurs. CLRA claims, however, receive the benefit of the discovery
The class, as currently defined, includes any purchaser or lessor of a 2006 or 2007 Honda Civic, or a 2006 through 2008 Honda Civic Hybrid. Some of these individuals no doubt purchased or leased their vehicles during at least part of 2006 and throughout 2007, since the class includes 2006 vehicles. Absent application of the delayed discovery rule, the statute of limitations would have begun to run on the date the car was purchased or leased. Since New York does not apply the delayed discovery rule, the claims of New York class members who purchased or leased their vehicles prior to December 10, 2007 would be barred under General Business Law § 349. Florida also does not apply the delayed discovery rule, and as that state imposes a four-year statute of limitations, the claims of some Florida class members who purchased or leased prior to December 10, 2006 would be barred; the same result would obtain with respect to the claims of California plaintiffs asserting a UCL claim who purchased or leased prior to that date, since there is no delayed discovery under the UCL. The claims of California plaintiffs asserting a CLRA cause of action would be barred, absent application of the delayed discovery rule, if they purchased or leased prior to December 10, 2007. If the court were to certify a three state class to which California law applied, therefore, the class would include individuals whose claims are time-barred under the law of their own state. Even a class comprised entirely of California plaintiffs would likely include individuals whose claims under one of the statutes would be barred because they could not show that they were entitled to invoke the delayed discovery rule. As a result, it is clear that defendant has identified a material difference in the laws of the three states.
Accordingly, the court moves to the third step in the choice-of-law analysis, which is the careful evaluation and comparison of the “nature and strength of the interest of each jurisdiction in the application of its own law____” McCann,
As the statute of limitations poses a complete bar to liability, the difference is a significant one. If the court were to certify a single UCL/CLRA class to which California law — including the statutes of limitations for UCL and CLRA claims — applies would undoubtedly include New York and Florida plaintiffs whose claims are time-barred under
Plaintiffs have identified no countervailing California interest that outweighs the other states’ interest in effecting their policy choices, and the Ninth Circuit has stated that under such circumstances, “California’s interest in applying its law to residents of foreign states is attenuated.” Mazza,
The impropriety of applying California law to a three-state class does not end the inquiry, however. Courts discussing conflict of laws in analyzing predominance have noted that while such variations must be considered, they will not necessarily defeat predominance. See Cameron v. E.M. Adams & Co.,
(2) The Express Warranty Class
Plaintiffs also seek to certify an express warranty class comprised of residents of Cal
As respects the reliance requirement, plaintiffs assert that none of the three states demands proof of reliance as an element of an express warranty claim. Defendants, by contrast, contend that the law of California and North Carolina on this point is similar, while New York law is different. The court concludes that neither plaintiffs nor defendants are completely correct. Nonetheless, it appears the laws of the three states differ in material respects.
Defendants contend that under California and North Carolina law, a plaintiff must prove reliance to prove an express warranty claim against a non-selling manufacturer of a product. Plaintiffs dispute this, citing Weinstat v. Dentsply Intern., Inc.,
“[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, 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 Scientific 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”). Consequently, in the absence of privity, California law requires a showing that a plaintiff relied on an alleged omission or misrepresentation.
New York and North Carolina law may not impose similar requirements. Reliance is ostensibly an element of an express warranty claim under North Carolina law. See Harbor Point Homeowners’ Ass’n, Inc. ex rel. Bd. of Directors v. DJF Enterprises, Inc.,
Similarly, while New York courts state that reliance is an element of an express warranty cause of action, see Horowitz v. Stryker Corp.,
Defendants have identified another material difference in the laws of the respective states, which concerns pre-suit notification. As the court has previously observed, California law does not require pre-suit notice where the consumer did not deal directly with the manufacturer. See Keegan,
The parties’ discussion of New York law on this subject indicates that it is evolving. While plaintiffs contend that in New York, the complaint itself can constitute reasonable notice after discovery of the breach, the case they cite for that proposition makes clear that plaintiffs in that action provided other forms of pre-suit notice that may have satisfied the notice requirement. Panda Capital Corp. v. Kopo Intern., Inc.,
Certain class members’ claims could stand or fall on this issue alone. Applying California’s notice requirements to individuals from other states where notice may be required, therefore, would be inappropriate.
Given certain material differences in the laws of the three states, the court proceeds to the next steps in the choice of law analysis, which addresses the interests of the foreign jurisdictions and the impairment of the other states’ interests. See Wash. Mut. Bank,
Plaintiffs alternatively seek certification of two express warranty classes — one including California residents only, and a second including New York and North Carolina residents. This suggestion is problematic for several reasons. First, plaintiffs concede that Carol Hinkle, a North Carolina resident, is no longer a plaintiff in this case.
While the court appreciates the point made in the Manual for Complex Litigation — i.e., that it is possible to address differences in state law by certifying smaller classes of plaintiffs who reside in states with similar laws — defendants have raised questions as to whether New York’s and North Carolina’s express warranty laws are in fact similar, and plaintiffs have failed convincingly to rebut that showing. On the present record, the court lacks sufficient information to determine that the law of New York is sufficiently similar to the law of North Carolina that a New York plaintiff can represent a class that includes North Carolina residents. Certainly, it cannot thoroughly examine the substantive law of the two states, nor conduct a careful choice-of-law analysis as it did before concluding that it was possible to certify a multi-state class under the relevant consumer protection laws.
Plaintiffs appear to assume that because Garcia is a named plaintiff, the court can apply New York law to North Carolina residents without engaging in a choice of law and due process analysis. This is the not the case. Moreover, as the court’s discussion suggests, the similarity between the express warranty laws of the states is, at best, unclear. Plaintiffs have simply not sufficiently rebutted defendants’ showing regarding differences, or potential differences, in the warranty law of New York and North Carolina to justify the imposition of New York law on a class that included North Carolina residents.
In sum, the court concludes that applying California law to plaintiffs’ proposed express warranty class is unwarranted, and also finds that certifying a California class and a New York-North Carolina class, as plaintiffs request, would not be appropriate. Consequently, the court declines to revise its tentative conclusion, expressed at the motion hearing, that a class comprised of California residents is the only express warranty class that can be certified.
b. Superiority
The court now examines whether a class action is the superior method of adjudicating the issues in this litigation. “Under Rule 23(b)(3), the court must evaluate whether a class action is superior by examining four factors: (1) the interest of each class member in individually controlling the prosecution or defense of separate actions; (2) the extent and nature of any litigation concerning the controversy already commenced by or against the class; (3) the desirability of concentrating the litigation of the claims in a particular forum; and (4) the difficulties likely to be encountered in the management of a class action.” Edwards v. City of Long Beach,
i. Express and Implied Warranty Classes
Plaintiffs’ express and implied warranty claims can be asserted only on behalf of a class of California purchasers. A class action is clearly a superior to individual actions as respects these California warranty classes. The cost of repairing the suspension defect is estimated to be $500; this is undoubtedly too small an amount to incentivize class members to litigate their claims individually.
In response to plaintiffs’ argument that the amount of money at issue is small, defendants focus, once again, on the fact that many putative class members have not experienced premature tire wear, and on the fact that some individuals have had the rear suspension on their vehicle repaired through “goodwill” programs.
ii. The Consumer Protection Class and State Subclasses
Plaintiffs have satisfied their burden of demonstrating that a consumer protection class with three separate state subclasses comprised of California, Florida and New York residents satisfies the predominance requirement. The court must thus consider whether litigating these claims on behalf of such subclasses is a superior means of adjudicating class members’ disputes. Although certifying three separate state subclasses makes this case somewhat less manageable, the complication is not sufficient to defeat plaintiffs’ showing on superiority. There are no material differences in the consumer protection laws of the three states other than the applicable statutes of limitations. Thus, with the parties’ concurrence, the court can proceed as if the substantive law that governs the claims of the subclasses is identical, and use a single set of liability jury instructions for the sub-classes at trial. Cf. Johns v. Bayer Corp.,
The individual states’ statutes of limitations will only become relevant if there is a liability finding and damages need to be determined. The main barrier to a finding that a class action is a superior method of litigating plaintiffs’ consumer protection claims is that the remedies available to residents of the three states differ. The Mazza court noted that differences in remedies could be material.
The most substantial difference in remedies that defendants identify is the availability of punitive damages. Under the CLRA, a plaintiff can recover actual damages, injunctive and restitutionary relief, and punitive damages.
The Supreme Court has indicated that awarding punitive damages for conduct committed outside a jurisdiction may violate due process. See State Farm, Mut. Auto. Ins. Co. v. Campbell,
Plaintiffs do not appear to dispute that imposing punitive damages in connection with injury suffered by non-California residents is inappropriate. Instead, they propose a method for ensuring that these state-specific questions do not impede classwide adjudication. Specifically, they request bifurcation of the liability and damages phases of the trial.
The court generally finds this bifurcation plan appropriate, and concludes that the superiority requirement is met. It notes, however, that plaintiffs have not articulated a workable trial plan for the classes they now propose. The court therefore directs plaintiffs to submit a trial plan that explains in detail (1) the subjects that they propose be addressed in separate phases of the trial; (2) the specific ways in which differences among available remedies will be addressed in special verdict forms during the liability phase of the trial; and (3) the specific mechanisms they suggest for handling the damages phase of the trial. See Gartin v. S & M NuTec LLC, 245 F.R.D. 429, 441 (C.D.Cal.2007) (“Neither Plaintiff nor her counsel has provided any suggestions — much less a plan — to this Court regarding managing the proposed class action”); see also Zinser,
III. CONCLUSION
For the reasons stated, the court certifies the following two classes:
• “All purchasers and lessees of any 2006 through 2007 Honda Civic and 2006 through 2008 Honda Civic Hybrid vehicle who purchased or leased the vehicle in California and who alleges claims for breach of express and implied warranty under California law.”
• “All purchasers and lessees of any 2006 through 2007 Honda Civic and 2006 through 2008 Honda Civic Hybrid vehicle who purchased or leased the vehicle in California, Florida, and New York, divided into the following three subclasses:
(1) a California UCL/CLRA class of purchasers and lessees of any 2006 through 2007 Honda Civic and 2006 through 2008 Honda Civic Hybrid vehicle who purchased or leased the vehicle in California between December 10, 2006 and December 10, 2010;
(2) a New York General Business Law § 349 class of purchasers and lessees of any 2006 through 2007 Honda Civic and 2006 through 2008 Honda Civic Hybrid vehicle who purchased or leased the vehicle in New York between December 10, 2007 and December 10, 2010; and
(3) a Florida Deceptive and Unfair Trade Practices Act class of purchasers and lessees of any 2006 through 2007 Honda Civic and 2006 through 2008 Honda Civic Hybrid vehicle who purchased or leased the vehicle in Florida between December 10, 2006 and December 10, 2010.”144
Consistent with this order, plaintiffs are directed to submit a trial plan on or before July 9, 2012. Defendant may submit a response by July 23, 2012.
Notes
. Complaint, Docket No. 1 (Dec. 10, 2010). The complaint initially alleged claims against Honda North America, Inc., Honda Motor Company, Ltd., Honda Manufacturing of Alabama LLC, and Honda Engineering North America, Inc. The first two defendants were dismissed by stipulation. Order Dismissing Defendants Honda Motor Co., Ltd. and Honda North America, Inc. Without Prejudice, Docket No. 56 (Jul. 20, 2011). The last two were terminated because they were not named in the first amended complaint.
. First Amended Complaint (“FAC”), Docket No. 39 (May 23, 2011).
. Plaintiffs’ Motion for Class Certification ("Motion”), Docket No. 81 (Nov. 22, 2011). See also Plaintiff's Reply Memorandum of Points and Authorities ISO Their Motion for Class Certification ("Reply”), Docket No. 81 (Jan. 9, 2012).
. Defendant American Honda Motor Co., Inc.’s Opposition to Plaintiffs’ Motion for Class Certification ("Opp.”), Docket No. 123 (Dec. 19, 2011).
. Plaintiffs' Supplemental Brief Concerning State Consumer Protection and Express Warranty Law (“Pis.’ Supplemental Brief"), Docket No. 131 (Feb. 6, 2012); Defendant American Honda Motor Co., Inc.'s Supplemental Brief in Opposition to Class Certification (“Honda Supplemental Brief”), Docket No. 132 (Feb. 6, 2012).
Defendants devote a portion of their supplemental brief to rearguing class certification issues about which the court did not order supplemental briefing, e.g., commonality and predominance. Plaintiffs object to these portions of the brief, contending that defendants exceeded the court’s instructions. Plaintiffs’ supplemental brief, for its part, shifts ground by eliminating claims and classes under certain state laws and seeking to certify more limited classes than those originally proposed. While the court preliminarily approved such a step at the class certification hearing, defendants filed their supplemental brief on the understanding that plaintiffs did not intend to alter their class definitions. As neither party fully followed the court's directive, it will consider all portions of the briefs that have been filed.
. FAC, ¶ 1, 94-97. On January 6, 2012, the court granted in part and denied in part defendants' motion to dismiss, giving plaintiffs leave to file a second amended complaint. Order Granting in Part and Denying in Part Defendant’s Motion to Dismiss, Docket No. 110 (Jan. 6, 2012.) That pleading has not yet been filed. For purposes of this motion, the court relies on the first amended complaint to describe the basic factual allegations at issue.
. Id., ¶ 103.
. Id., ¶10.
. Id., ¶ 104.
. Id.
. Id., ¶ 105.
. Id.
. Id., ¶ 106.
. Id., ¶ 5.
. Id., ¶ 6.
. Id. The complaint asserts that because of the defect, the tires on Class Vehicles do not comply with federal motor vehicle safety standards ("FMVSS”), which set tire dimensions and lab test requirements for passenger vehicle tires. Because the defect causes unevenness along the width of the tire, a tire wear gauge will not accurately reflect the extent of the wear. (Id.., n. 3.)
. Id., ¶ 7.
. Id.
. Id.
. Id., ¶ 107. This paragraph quotes a number of the consumer complaints filed with NHTSA and posted on the internet. The consumer complaints report a range of problems associated with the vehicles' rear control arms, which caused significant tire wear beyond that typically expected given the cars’ mileage.
. Id., ¶ 108.
. Id.
. Id.
. Id., ¶¶ 9, 108.
. Id., ¶ 10.
. Id., ¶11.
. Id., 1112.
. Id.
. Id., ¶ 13.
. Id., ¶ 15.
. Id., ¶ 16.
. Id., V 19.
. Id., ¶ 22.
. Id., ¶ 40.
. Id., ¶ 44.
. Id., ¶ 60.
. Id., ¶ 68.
. Id., ¶ 82.
. Motion, Exh. 2 (“Shannon Depo.”) at 38:7-15, 23:21-24:8.
. Shannon Depo. at 23:21-24:8, Motion, Exh. 3 ("2008 TSB”).
. Opp. Exh. 5 ("Shannon Decl.”), ¶ 3.
. Motion at 6.
. Id.
. id..
. Plaintiffs do not dispute that the standards of Daubert and Rule 702 apply. Plaintiffs' Response to Defendants' Evidentiary Objections to the Report of Gary A. Derian ("Derian Objections Response"), Docket No. 126 (Jan. 6, 2012).
. This showing must be by a preponderance of the evidence. See Daubert,
. Motion, Exh. 1 ("Derian Decl.”), Docket No 82 (Nov. 22, 2011).
. Id., ¶ 2.
. Id., ¶ 3.
. Id., V 5.
. Id., ¶ 6. A list of cases where Derian has testified is appended to his declaration as Exhibit 1.
. Id., ¶ 7. Bronish is a friend of Derian's son. (Derian Objections at 7.)
. Id.
. Id., ¶ 37.
. Defendant American Honda Motor Co., Inc.’s Evidentiary Objections to the Report of Gary A. Derian ("Derian Objections"), Docket No. 126 (Dec. 19, 2011), Exh. 1 ("Derian Rule 26 Report").
Defendants also question Derian’s qualifications, citing deficiencies in his educational background and the fact that his expert opinions have been excluded in at least four other cases. (Deri-an Objections at 3-4.) They do not seek exclusion of his testimony on this basis, however. Plaintiffs observe that the cases to which defendants refer, moreover, do not clearly demonstrate that he is unqualified to offer opinions in this case. (Derian Objections Response at 4-7.) In one of the cases defendants cite, for example, the court excluded one of Derian's opinions as lacking foundation, but denied defendant’s motion to exclude his testimony in its entirety. See Green v. Goodyear Dunlop Tires North America, Ltd., Case No. 08-472-GPM,
. Derian Objections, Exh. 11 ("Supplemental Daws Decl."), ¶¶ 4 — 5.
. Derian Objections, Exh. 3 ("Derian Depo.”) at 63:2-64:18.
. Derian Depo. at 61:9-21. Derian described the trammel rod as a “very shallow U-shaped bar that allows me to measure directly across from the hub — hub height of the car at the tire, the front and the rear.” (Id.)
. Supplemental Daws Decl., ¶ 7.
. Derian Depo. at 123:16-19, 154:16-20. A tire’s “toe angle” is the “angle between the tire centerline and the centerline of the vehicle, typically measured in degrees.” (Daws Deck, ¶ 17.) Positive toe angle essentially means that the tires point outward; cars are often set with negative toe angle because cars, as they drive, tend to twist the tires inward. (Id.)
. Derian Depo. at 62:17, 70:8-10.
. Id. at 84:18-85:1 (discussing Garcia inspection).
. Id. at 141:13-14.
. Supplemental Daws Deck, ¶ 8; see also Deri-an Depo. at 127:21-22, 130:16-19 (discussing the Kolstad inspection).
. Id. Defendants’ remaining objections to Deri-an’s camber, toe, and tire wear measurement methods rely heavily on the fact that their own expert reached different conclusions about those measurements. (Id., ¶¶ 5-7.) The court declines to rely on objections based on disagreement with Derian’s conclusions rather than his methods.
. Derian Objections Response at 11.
. Plaintiffs cite the 2008 TSB as evidence that “neither a tread depth gauge nor any other specific instrument is necessary to determine whether a tire has experienced excessive wear....’’ (Id. at 11.) Plaintiffs are mistaken. There is no requirement that a mechanic at a Honda dealership, or an individual measuring tire wear in his own back yard, use a particular methodology to diagnose a problem with a Honda vehicle. An individual testifying as an expert, however, must use methods that are generally used by others in his field to demonstrate that the conclusions he has reached are reliable. See Southland Sod Farms v. Stover Seed Co.,
Defendants, moreover, question the methodology Derian employed in forming an opinion regarding the extent of tire wear the vehicles experienced. Derian used a ruler and his finger to measure tire tread depth on one vehicle rather than the tire gauge he used to examine other vehicles. (Derian Depo. at 127:21-22, 130:16-19 (discussing the Kolstad inspection).)
. Derian Objections Response at 8 n. 6.
. Id. at 2-3.
. Derian Objections Response at 8.
. Derian Dec!., ¶ 25 (“After inspection the vehicles of Garcia, Hinkle, Ellis, and Kolstad, I found that the negative camber of the rear wheels was too high in all the vehicles id., ¶33 (discussing tire wear on the class vehicles and stating that it is of "a different type than would be generated if the tires were overloaded, underinf-lated, or if the vehicles were driven very aggressively”); id., ¶ 35 (concluding that the class vehicles suffer from a common defect, and relying on “analysis of the rear tire wear patterns, the vehicle inspections, and the documents ... ”).
. Derian Objections, Exh. 7 ("Daws Decl.”), ¶ 2.
. Id., ¶¶ 3-9.
. Id.,n 10-11.
. Id., ¶ 11. The documents Daws reviewed are listed in Appendix A to his declaration. Although he reviewed TSBs dated January 22, 2008, February 8, 2008, April 11, 2008, and February 5, 2009, plaintiffs rely only on the January 22, 2008 TSB, which is Exhibit 3 to their motion.
. Id., ¶80.
. Id.
. Id.
. Declaration of Payam Shahian in Support of Plaintiffs’ Reply in Support of Motion for Class Certification ("Shahian Decl.”), Docket No. 129 (Jan. 9, 2011), Exh. 3 ("Daws Depo.”).
. Id. at 25:16-19.
. Daws Objections at 7.
. The remainder of the parties’ evidentiary objections will be addressed only insofar as the court relies on the challenged evidence. See, e.g., Yamada v. Nobel Biocare Holding AG,
. Defendants contend that plaintiffs must satisfy Rule 23’s requirements by a preponderance of the evidence, citing out-of-circuit authority. See In re Hydrogen Peroxide Antitrust Litig.,
. The Supreme Court has noted that "[f]re-quently that 'rigorous analysis’ will entail some overlap with the merits of the plaintiff’s underlying claim. That cannot be helped.” Dukes,
. Defendants do not dispute that plaintiffs have met their burden on this Rule 23 requirement.
. Motion, Exh. 2 ("Shannon Depo.”) at 86:16-20 (testimony of Honda's corporate representative); id., Exh. 9 (civil tire wear service bulletin stating that 625,601 vehicles were covered by 2006-07 TSB).
. Id.
. Defendants, once again, do not dispute plaintiffs' showing as to this requirement.
. Shannon Depo. at 38-7-15.
. Daws Decl., ¶ 18.
. Shannon Depo. at 38-7-15.
. Id. at 27:23-28:2.
. Motion at 11 ("Plaintiffs ... suffer from the same injury' — excess tire wear due to the Suspension Defect ...”). See also Shannon Depo. at 20:20-24:8; Motion, Exh. 3 (“2008 TSB”) (stating that the “combination of the tires and the rear suspension geometry” can cause "uneven or rapid tire wear, a roaring noise from the car, and/or a vibration at high speeds").
. Opp. at 12. Defendants also argue that a certain amount of negative camber is appropriate and even necessary, for engineering reasons. This does not mean that the design specification in question is not defective, however. Plaintiffs’ theory is that the design specification results in excessive negative camber.
. Opp. at 13.
. Defendants challenge Wolin's applicability to this case, relying largely on the California Court of Appeal's recent decision in American Honda Motor Co. v. Superior Court,
. Motion, Exhs. 11-16 (declarations of named plaintiffs stating that they own or lease a class vehicle and have experienced premature or excessive tire wear).
. Motion, Exh. 17 ("Caddell Decl.”), Exh. 18 ("Shahian Decl.”), Exh. 19 ("Starr Decl.”), Exh. 20 ("Mendelsohn Decl.”).
. Id.
. Defendants raise no challenges to either the class representatives’ or class counsel’s adequacy-
. Plaintiffs do not seek to certify a Rule 23(b)(1) or (b)(2) class.
. Shannon Depo. at 28:7-15.
. Id. at 23:231-24:8; 2008 TSB.
. Opp., Exh. 3 ("Shannon Decl.”), ¶ 3.
. Plaintiffs have submitted evidence that negative camber in the 1.0 to 2.25 range can result in premature tire wear, but have not specifically indicated that negative camber in the 0.75 to 1.0 range will result in the problems complained of. (Shahian Decl., Exh. 6.)
In response to the problems with the class vehicles, defendant's subsequent Honda Civic design specifications require only a 0.75 negative camber. (Opp. at 4.)
. Plaintiffs argue that the relevant “malfunction” is the "excessive” negative camber that results. This argument is unpersuasive. There is no evidence that a certain degree of excessive negative camber, in and of itself, renders the vehicles unable to function. The complaint, moreover, focuses not on the degree of negative camber, but rather on the manner in which the "alignment/geometry” defect in the class vehicles causes the “rear tires [to] wear unevenly and prematurely, causing the occupants to experience an extremely rough ride, as well as exceptionally loud and disruptive noise, while driving. ...” (FAC, ¶4.) The next paragraph asserts that "[t]ires are one of the most important mechanical components for vehicle control and safe driving." (Id., ¶ 5.) As can be seen, negative camber is not identified as the cause of the
. Shannon Depo. at 62:22-63:3.
. Daws Deck, V 78.
. Id. (noting that "slight vehicle deformations can and do occur due to road hazard impacts and wear on the suspension”).
. Shahian Dec!., Exh. 6 ("AHM-116553”).
. Hernandez Depo. at 254:20-21.
. Reply at 2.
. Daws Decl., ¶ 86 (citing driving habits, road conditions, type of tire, the weight a vehicle regularly carries, and other factors as giving rise to individualized inquiries that defeat predominance).
. Opp. at 13. Honda frames the question thus: "If the trier of fact found that two plaintiffs' tires exhibited wear of the sort described in the TSB, but that the other three did not, what possible judgment could be rendered for or against the class?” {Id.) It would appear that judgment in Honda’s favor would have to be entered on the class claims if the only evidence plaintiffs adduced was the fact that of five class vehicles, some did and some did not exhibit premature tire wear.
. Motion, Exhs. 12-16 (plaintiffs’ declarations stating that they were not informed of suspension defect before purchasing vehicle).
. Opp., Exh. 2 ("Hernandez Depo.") at 99:13-15, 145:4, 152:16-18. Specifically, it appears that about 37,000 individuals made complained directly to Honda about the design defect at issue here. (Anderson Depo. at 77:7-11.) This figure does not include individuals who may have paid for repairs themselves, as some plaintiffs allegedly did. (Opp. at 10 n. 5.)
. Daws Decl., ¶ 80.
. Reply at 10 (citing Anderson Depo. at 78:19:79:4).
. FAC, ¶ 171.
. Pis.’ Supplemental Brief at 1.
. In so concluding, the Court noted that "[a] number of federal courts ha[d] approved nationwide or multistate class action certification for pendent state law claims where the defendants [had] failed to show that foreign law [was] more properly applied to the claims of nonresident class members under California's governmental interest analysis.” Id. (citing, inter alia, Harmsen v. Smith,
. Shannon Depo. at 71:5-10 (testifying that Honda's service engineering group were located in Torrance, CA, as well as offices of deponent, who was Honda's designated corporate representative).
. Id. at 77:2-17.
. Id. at 73:7-9.
. Reply at 22 (citing Shannon Depo. at 23:8-9.)
. Shahian Dec!., Exh. 8 ("AHM-0116684”).
. Shahian Decl., ¶ 10.
. The plaintiffs do not seek to certify a multi-state implied warranty class; they concede that that class must be comprised of California residents only. (Pis.’ Supplemental Brief at 1.)
. Pis.’ Supplemental Brief at 1. Defendants note that Zdeb, the lone Florida resident in this litigation, has elected not to participate, and is not longer a class representative. (Id., Exh. B (email string between counsel indicating that Zdeb will not be participating in the action).) They assert that the loss of the sole Florida plaintiff means that plaintiffs lack standing to represent a class of Florida consumers. See In re Apple & AT & TM Antitrust Litig.,
. Defendants also identify differences in the various states' scienter requirements; based on their supplemental brief, however, it appears that California, New York and Florida law is similar in this regard. (Honda’s Supplemental Brief at 6.) The only state with a scienter requirement materially different from other states' is Idaho. Plaintiffs no longer seek to include Idaho plaintiffs in their class, however.
. Honda’s Supplemental Brief at 6-7.
. Pis.’ Supplemental Brief at 12.
. FAC, ¶ 17.
. FAC, ¶¶ 17-18.
. Assuming a liability finding in the first phase, even this approach will require further proceedings in a second phase to determine which California plaintiffs can assert a UCL claim based on their date of purchase or lease, and which can assert a CLRA claim based on the delayed discovery rule.
. Defendants argue that Halprin definitively held that notice to a manufacturer not in privity is required. The case explicitly reserved the question, however, and its holding rested on other grounds. (Honda Supplemental Brief at 11-12.)
. Defendants also assert that the relevant states have different requirements as to whether a defect must manifest prior to the expiration of the express warranty. As the court has explained, under California law, a defect that remains "latent” during the useful life of the product and does not manifest in an actual malfunction will not support an express warranty claim. Keegan,
. Pis.’ Supplemental Brief at 14 n. 7.
. Id. at 14.
. Anderson Depo. at 136:16-137:3.
. "Goodwill” programs are repairs Honda provides in situations that may not be covered by a warranty. (Anderson Depo. at 20:25-21:14, 22:14-24.) Defendants estimate that they have spent approximately $15 million fixing alleged defects in class vehicles. (Shannon Depo. at 127:23-128:1.) Keegan, for example, received free replacement arms at approximately 77,000 miles. (Opp., Exh. 8 ("Keegan Depo.”) at 40:17-41:6.)
. Defendant also identifies differences in the manner in which each state addresses the availability of treble damages and attorneys' fees. Their argument, however, primarily concerns the laws of Montana, Idaho, and North Carolina, which are no longer relevant. {Id. at 8, 10.)
. Pis.' Supplemental Brief at 15.
. The court's conclusion remains subject to ongoing evaluation. It has noted above its concerns with various aspects of the predominance inquiry, and the fact that the predominance inquiry also has a substantial effect on the superiority analysis. Discovery in this case is not yet complete. If at a later stage in the litigation it becomes evident that plaintiffs’ claims will not be subject to common proof, or that the class action device no longer appears to be a manageable mechanism for adjudicating this dispute, the parties can bring that to the court’s attention. As the Ninth Circuit has explained, "a district court retains the flexibility to address problems with a certified class as they arise, including the ability to decertify.” United Steel, Paper & Forestry,
