Corvette Lawsuit
Corvette Lawsuit
Corvette Lawsuit
Page 1
CLASS ACTION COMPLAINT
Case 2:19-cv-03665-CJC-AFM Document 1 Filed 04/30/19 Page 3 of 50 Page ID #:3
1 these complaints. For example, on August 31, 2017, a Corvette Grand Sport
2 owner wrote:
3
4 There have been a lot of reports of stock wheels bending
on Grand Sports and Z06s here lately, and I’ve had one
5 of my own front wheels bend on a brand new Grand
6 Sport. In my situation, there was absolutely no damage,
scratch or even a mark anywhere—the wheel just went
7 out of round with less than 1,000 miles on the car.
8 Why is this happening, is Chevy aware of this happening
on more than an isolated occurrence, and what is being
9 done to remedy the situation?2
10
8. On October 18, 2017, GM responded by denying that there had been
11
a “rash” of wheel failures, denying the existence of a defect, and blaming the
12
customer. GM wrote:
13
14 “A frequent sequence of events is that a wheel gets bent
15 by a road hazard but the damage is initially undetectable
to the driver…. Over time fatigue cracks can form after
16 thousands or even millions of cycles…. we will
17 continuously improve our designs and validation
procedures based on how the world is changing.”
18
19 9. Although GM sold its Corvette with a 3-year, 36,000-mile Bumper-
20 to-Bumper warranty, GM is refusing to cover the Rim Defect, arguing that the
21 customers’ driving and the roads are to blame for the wheel failures.
22 10. In GM’s warranty, GM agreed to cover repairs to cover any vehicle
23 defect except for “slight noise, vibrations, or other normal characteristics of the
24 vehicle due to materials or workmanship occurring during the warranty period.”
25 See paragraph 115, infra. By refusing to cover repairs or replacements of the
26 bent and cracked rims, GM is breaching its Bumper-to-Bumper warranty.
27 2
https://www.corvetteforum.com/forums/ask-tadge/4036656-asked-grand-
28 sport-z06-wheels-bending.html
Page 2
CLASS ACTION COMPLAINT
Case 2:19-cv-03665-CJC-AFM Document 1 Filed 04/30/19 Page 4 of 50 Page ID #:4
1 11. The Rim Defect is inherent in each Class Vehicle and was present at
2 the time of sale.
3 12. Although GM was sufficiently aware of the Rim Defect from pre-
4 production testing, design failure mode analysis, calls to its customer service
5 hotline, and customer complaints made to dealers, this knowledge and
6 information was exclusively in the possession of GM and its network of dealers
7 and, therefore, unavailable to consumers.
8 13. Despite access to aggravate internal data, GM has actively
9 concealed the existence of the defect, telling customers that the wheels are not
10 defective and that the cracked wheels are caused by potholes or other driver
11 error.
12 14. GM sells the Class Vehicles with a 3-year, 36,000-mile bumper-to-
13 bumper warranty. However, when class members bring their vehicles to GM’s
14 authorized dealerships requesting coverage for the Rim Defect, GM is
15 systematically denying coverage. As a result, Class Members are paying
16 thousands of dollars out-of-pocket to repair and replace the wheels with equally
17 defective wheels.
18 15. The Rim Defect is material because it poses a serious safety
19 concern. Cracked rims can cause the tire to fail and explode while driving,
20 leading to a sudden loss of control at speed and a potential collision.
21 16. The Rim Defect is also a material fact because consumers incur
22 significant and unexpected repair costs. GM’s failure to disclose material facts
23 regarding the Rim Defect at the time of purchase is material because no
24 reasonable consumer expects to spend hundreds, if not thousands, of dollars to
25 repair or replace defective rims.
26 17. Had GM disclosed the Rim Defect, Plaintiff and Class Members
27 would not have purchased the Class Vehicles, would have paid less for them.
28
Page 3
CLASS ACTION COMPLAINT
Case 2:19-cv-03665-CJC-AFM Document 1 Filed 04/30/19 Page 5 of 50 Page ID #:5
1 THE PARTIES
2 Plaintiff Anthony Nardizzi
3 18. Plaintiff Anthony Nardizzi is a California citizen who resides in
4 Valencia, California.
5 19. On or around June 7, 2018, Plaintiff Nardizzi leased a new 2018
6 Chevrolet Corvette from Santa Paula Chevrolet, an authorized GM dealer in
7 Valencia, California.
8 20. Plaintiff Nardizzi purchased his Corvette primarily for personal,
9 family, or household use.
10 21. Passenger safety and reliability were important factors in Plaintiff
11 Nardizzi’s decision to purchase his vehicle. Before making his purchase,
12 Plaintiff Nardizzi researched the 2018 Chevrolet Corvette on GM’s official
13 website, on dealership websites, and through general Google searches. In
14 addition, before purchase, Plaintiff Nardizzi also reviewed the vehicle’s
15 Monroney Sticker or “window sticker” which listed official information about
16 the vehicle. Plaintiff Nardizzi believed that the Corvette would be a safe and
17 reliable vehicle.
18 22. GM’s omissions were material to Plaintiff Nardizzi. Had GM
19 disclosed its knowledge of the Rim Defect before he purchased his Corvette,
20 Plaintiff Nardizzi would have seen and been aware of the disclosures.
21 Furthermore, had he known of the Rim Defect, Plaintiff Nardizzi would not have
22 purchased his vehicle, or would have paid less for it.
23 23. Upon purchasing the vehicle from the dealership, Mr. Nardizzi had
24 the vehicle brought directly to Impression Auto Salon. CalChrome, a third-party
25 wheel finisher, picked up the rims to have them coated. While inspecting the
26 vehicle, CalChrome took a video showing that the rims were bent. As a result,
27 Mr. Nardizzi replaced his vehicle’s wheels at an out-of-pocket cost of $7,500.
28
Page 4
CLASS ACTION COMPLAINT
Case 2:19-cv-03665-CJC-AFM Document 1 Filed 04/30/19 Page 6 of 50 Page ID #:6
1 24. Mr. Nardizzi complained to Santa Paula Chevrolet and asked that
2 his wheels be covered under GM’s bumper-to-bumper warranty. The GM
3 dealership told Mr. Nardizzi that the wheels warped because of Mr. Nardizzi’s
4 driving and that GM would not cover any portion of the repair. In addition, the
5 derlership told Mr. Nardizzi that he could not replace the rims because they were
6 backordered three to six months.
7 25. Mr. Nardizzi continued to request that GM cover a portion of the
8 repairs by contacting GM directly, and GM agreed to cover $1,200 of Mr.
9 Nardizzi’s $7,500 out of pocket cost.
10 26. At all times, Plaintiff Nardizzi, like all Class Members, has driven
11 his Chevrolet Corvette in a manner both foreseeable and in which it was intended
12 to be used.
13 Defendant
14 27. Defendant General Motors LLC is a Delaware limited liability
15 company with its principle place of business located at 300 Renaissance Center,
16 Detroit, Michigan. General Motors LLC is registered to do business in the State
17 of California. The sole member and owner of General Motors LLC is General
18 Motors Holdings LLC. General Motors Holdings LLC is a Delaware limited
19 liability company with its principle place of business in the State of Michigan.
20 General Motors Holdings LLC’s only member is General Motor Company, a
21 Delaware corporation with its principal place of business in the State of
22 Michigan. General Motors Company has 100% ownership interest in General
23 Motors Holdings LLC.
24 28. General Motors LLC, through its various entities, designs,
25 manufactures, markets, distributes, services, repairs, sells, and leases passenger
26 vehicles, including the Class Vehicles, nationwide and in California. General
27 Motors LLC is the warrantor and distributor of the Class Vehicles in the United
28
Page 5
CLASS ACTION COMPLAINT
Case 2:19-cv-03665-CJC-AFM Document 1 Filed 04/30/19 Page 7 of 50 Page ID #:7
1 States.
2 29. At all relevant times, Defendant was and is engaged in the business
3 of designing, manufacturing, constructing, assembling, marketing, distributing,
4 and selling automobiles and motor vehicle components in Los Angeles County
5 and throughout the United States of America.
6 JURISDICTION
7 30. This is a class action.
8 31. Members of the proposed Class are citizens of states different from
9 the home state of Defendant.
10 32. On information and belief, aggregate claims of individual Class
11 Members exceed $5,000,000.00 in value, exclusive of interest and costs.
12 33. Jurisdiction is proper in this Court pursuant to 28 U.S.C. § 1332(d).
13 VENUE
14 34. GM, through its business of distributing, selling, and leasing the
15 Class Vehicles, has established sufficient contacts in this district such that
16 personal jurisdiction is appropriate. Defendant is deemed to reside in this district
17 pursuant to 28 U.S.C. § 1391(a).
18 35. Venue is proper in this Court pursuant to 28 U.S.C. § 1391(b)
19 because Plaintiff Nardizzi resides in the County of Los Angeles, California. In
20 addition, Plaintiff Nardizzi’s Declaration, as required under California Civil
21 Code section 1780(d) but not pursuant to Erie and federal procedural rules,
22 reflects that a substantial part of the events or omissions giving rise to the claims
23 alleged herein occurred, or a substantial part of property that is the subject of this
24 action, is situated in Los Angeles, California. It is attached as Exhibit 1.
25 FACTUAL ALLEGATIONS
26 36. Since 2014, GM has designed, manufactured, distributed, sold, and
27 leased the Class Vehicles. GM has sold, directly or indirectly, through dealers
28
Page 6
CLASS ACTION COMPLAINT
Case 2:19-cv-03665-CJC-AFM Document 1 Filed 04/30/19 Page 8 of 50 Page ID #:8
1
2
3
4
5
6
7
8 40. The problem is widespread. In a section entitled “Wheel Woes,” Car
9 & Driver magazine reported that, during its long-term review of a 2017
10 Chevrolet Corvette Grand Sport, the vehicle suffered three bent rims and a $1119
11 repair bill:
12
Shortly after its first trip to the test track, however, the
13 Grand Sport showed signs of an ailment that would dog
14 us throughout our time with the car. At just under 6500
miles we discovered that three of its wheels were bent.
15 Two were repaired, but one was cracked and had to be
16 replaced. In all, that was an $1119 trip to the Corvette
cobbler, none of which was covered by warranty.3
17
18 41. The Rim Defect alleged is inherent in and the same for all Class
19 Vehicles.
20 42. The Rim Defect is material to consumers because it presents a
21 serious safety concern. Cracked rims can cause the tire to fail and explode while
22 driving, leading to a sudden loss of control at speed and a potential collision. In
23 addition, bent rims can cause the vehicle to vibrate which makes the vehicle less
24 stable and can cause driver distraction.
25 GM Had Superior and Exclusive Knowledge of the Rim Defect
26 43. GM is aware of the Rim Defect and tells its customers that the
27 3
https://www.yahoo.com/news/redemption-2017-chevrolet-corvette-
28 grand-202000878.html
Page 8
CLASS ACTION COMPLAINT
Case 2:19-cv-03665-CJC-AFM Document 1 Filed 04/30/19 Page 10 of 50 Page ID #:10
1 wheels are not defective and that the cracks are caused by the drivers. GM is also
2 refusing to cover the Rim Defect under warranty.
3 44. Corvette owners communicate through online forums such as
4 www.CorvetteForum.com. GM monitors these online forums and communicates
5 with its customers. For example, on August 31, 2017, a Corvette Grand Sport
6 owner wrote:
7
There have been a lot of reports of stock wheels bending
8 on Grand Sports and Z06s here lately, and I’ve had one
9 of my own front wheels bend on a brand new Grand
Sport. In my situation, there was absolutely no damage,
10 scratch or even a mark anywhere—the wheel just went
11 out of round with less than 1,000 miles on the car.
Why is this happening, is Chevy aware of this happening
12 on more than an isolated occurrence, and what is being
13 done to remedy the situation?4
14 45. On October 18, 2017, GM responded by denying that there had been
15 a “rash” of wheel failures, denying the existence of a defect, and blaming the
16 customer: “A frequent sequence of events is that a wheel gets bent by a road
17 hazard but the damage is initially undetectable to the driver…. Over time fatigue
18 cracks can form after thousands or even millions of cycles.”5 With respect to a
19 remedy, GM only stated that “we will continuously improve our designs and
20 validation procedures based on how the world is changing.”
21 46. To date, GM continues to refuse to cover the Rim Defect under
22 warranty, and has not issued any relief to the customers who have had to pay
23 thousands out-of-pocket as a result.
24 47. GM also monitors customers’ complaints made to the National
25
4
26 https://www.corvetteforum.com/forums/ask-tadge/4036656-asked-grand-
sport-z06-wheels-bending.html
27 5
https://www.corvetteforum.com/forums/ask-tadge/4055813-answered-
28 grand-sport-z06-wheels-bending.html
Page 9
CLASS ACTION COMPLAINT
Case 2:19-cv-03665-CJC-AFM Document 1 Filed 04/30/19 Page 11 of 50 Page ID #:11
2
3 g. DATE OF INCIDENT: June 11, 2018
DATE COMPLAINT FILED: July 5, 2018
4 NHTSA/ODI ID: 11109750
5 SUMMARY: BOTH REAR WHEELS DEVELOPED CRACKS
APPROXIMATELY TWO INCHES LONG FROM THE INSIDE
6 EDGE TOWARD THE MIDDLE OF THE WHEEL. THE CRACKS
7 IN BOTH WHEELS WERE SIMILAR IN SIZE AND LOCATION.
MILEAGE WHEN NOTICED WAS 24,000. NUMEROUS
8 REPORTS OF THE SAME ISSUE ARE BEING REPORTED ON
9 CORVETTE RELATED WEB SITES.
2
3 l. DATE OF INCIDENT: September 25, 2018
DATE COMPLAINT FILED: December 17, 2018
4 NHTSA/ODI ID: 11161931
5 SUMMARY: NOTICED A VIBRATION IN THE CAR AT
HIGHWAY SPEEDS. TOOK THE VEHICLE INTO THE DEALER
6 AND WAS TOLD THAT THE WHEEL WAS BENT. SERVICE
7 MANAGER STATED THAT THIS WAS HAPPENING TO MANY
CORVETTES AND WAS DUE TO THE STIFFNESS OF THE TIRE
8 AND THE WEAKNESS OF THE FACTORY WHEEL. GM HAS
9 DENIED A CLAIM UNDER WARRANTY.
1
THE VEHICLE IS HARDLY EVER DRIVEN, HAS NEVER SEEN
2 ROUGH ROADS/CITY STREETS/BAD WEATHER/ETC. THE
3 VEHICLE HAS NEVER BEEN "TRACKED" OR OTHERWISE
ABUSED. THIS IS A "SUMMER ONLY," WEEKEND VEHICLE
4 THAT HAS BEEN IMPECCABLY MAINTAINED.
5
THERE ARE NO VISIBLE SCUFFS/SCRAPES/BENDS/BULGES
6 OR OTHER DAMAGE TO THE TIRES OR WHEELS. NEVER HIT
7 ANY POTHOLE/ROAD HAZARD/DEBRIS, *EVER.*
1
HTTP://WWW.CARPROBLEMZOO.COM/CHEVROLET/CORVE
2 TTE/WHEEL-PROBLEMS.PHP
3
t. DATE OF INCIDENT: January 19, 2019
4 DATE COMPLAINT FILED: January 21, 2019
5 NHTSA/ODI ID: 11171195
SUMMARY: THE WHEELS ON MY VEHICLE ARE CRACKED
6 ON THE REAR PASSENGER SIDE. I PICKED UP MY (NEW)
7 CAR FROM LAMARQUE AUTO DEALER IN NEW ORLEANS
AND DROVE HOME TO BEAUMONT. WHEN I GOT TO
8 BEAUMONT, THE LOW TIRE PRESSURE WARNING CAME
9 ON. SO TODAY (1-21-19) I TOOK CAR TO DISCOUNT TIRE
AND THEY FOUND THAT MY WHEEL IS CRACKED. I'
10 ASSUMING IT CRACKED WHILE DRIVING OVER 200 MILES
11 ON I-10 HEADED HOME.
2
d. October 20, 2017: I have several [bent] rims, probably seven, I’ll
3 have to count all of them. They are all in the rear and none of them
4 were from hitting anything that is worse than any other expansion
joint or imperfection in the road. I’m very careful not to hit potholes.
5 The roads I travel on are actually in very good shape. (available at
6 https://www.corvetteforum.com/forums/c7-general-
discussion/4056471-have-you-had-a-wheel-
7 bend.html#post1595799836)
8
e. October 20, 2017: Five bent wheels within the first 2,700 miles.
9 Currently have 6,700 miles on my C7Z. All were bent on public
10 streets. The first four were all bent at the same time from a pothole
that was kind of hidden in the shadows and I tried to straddle at
11
about 35 mph, it didn't work. The fifth was a very minor bump
12 coming off a freeway bridge at 55 mph. Couldn't feel any vibration
until 45+ mph with any of these. (Id.)
13
14 f. October 22, 2017: Fast forward several months, I return to the same
dealership regarding the vibration issue which had gotten
15
progressively worse. At that time, the dealership informed me that all
16 four rims were bent. I’ve since heard that driving in Sport mode
could result in bent wheels. Available at (Id.)
17
18 g. May 8, 2018: Yes...I have just been informed by my dealer that My
C7 Z06 has two bent wheels.
19
They caused the car to have a rythmic vibration. Only 3000 miles and
20 no evidence of damage and I have no recollection of any road hazards
hit. I noticed the vibration right after taking a very hard off ramp ! (Id.)
21
22 h. June 20, 2018: 2 front wheels bent on a 2017 GS. (Id.)
23
i. June 20, 2018: I took my 2017 GS in today for a vibration. They say
24 all four wheels are bent! (Id.)
25
j. June 24, 2018: I had a shimmy in the steering wheel on my 2017 GS.
26 It seems I had 3 bent wheels and a cracked wheel. Insurance company
27 purchased through the dealer is being a real pain. They want to give
me a $650 wheel for the one that was cracked even though the GM
28
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CLASS ACTION COMPLAINT
Case 2:19-cv-03665-CJC-AFM Document 1 Filed 04/30/19 Page 26 of 50 Page ID #:26
1 price is over $900 for the Chrome clad. The other 3 have been
straightened and are perfect. Now to fight for a GM wheel and an
2 alignment…. (Id.)
3
k. June 27, 2018: The verdict is in, they tell me that 3 of the wheels are
4 BENT?!? I haven't even hit as much as a pothole and 3 of the 4 wheels
5 are bent?!?! WTF?!?!
6 The LR wheel and both Right (Front and Rear) are bent according to
7 the dealer. They said that one of the right ones, I'm so pissed I don't
even remember which one they told me, was so bent that you didn't
8 have to spin it to see it. And OF COURSE they are not covered under
9 warranty. (Id.)
10 l. June 28, 2018: 2018 GS had all 4 wheels bent and a cracked one also,
11 I believe from potholes at highway speeds. Drove it from Maryland to
Colorado. Put new Z06 style wheels on and waiting for an answer
12 from the T&W insurance. Couldn’t wait for them to make a decision
13 and not drive my car. Now it rides fantastic. (Id.)
1 tire or rim damage tells me the rims are not up to what roads in the
USA are like. (Id.)
2
3 p. November 16, 2018: Bought my 2016 Z with 30K miles and a cracked
rear wheel was found at inspection. (Id.)
4
5 q. November 26, 2018: Left Rear, Right Front, and Right Rear, on a
Grand Sport Collector Edition. (Id.)
6
7 51. GM had superior and exclusive knowledge of the Rim Defect and
8 knew or should have known that the defect was not known or reasonably
9 discoverable by Plaintiff and Class Members before they purchased or leased the
10 Class Vehicles.
11 52. Plaintiff is informed and believes and based thereon alleges that
12 before Plaintiff purchased his respective Class Vehicles, and since 2015, GM
13 knew about the Rim Defect through sources not available to consumers,
14 including pre-release testing data, early consumer complaints to GM and its
15 dealers, testing conducted in response to those complaints, high failure rates and
16 replacement part sales data, and other aggregate data from GM dealers about the
17 problem.
18 53. GM is experienced in the design and manufacture of consumer
19 vehicles. As an experienced manufacturer, GM conducts tests, including pre-sale
20 durability testing, on incoming components, including the wheels, to verify the
21 parts are free from defect and align with GM’s specifications.6 Thus, GM knew
22 or should have known that the subject wheels were defective and prone to put
23 drivers in a dangerous position due to the inherent risk of the defect.
24 54. Additionally, GM should have learned of this widespread defect
25 6
Akweli Parker, How Car Testing Works, HOWSTUFFWORKS.COM,
26 http://auto.howstuffworks.com/car-driving-safety/safety-regulatory-devices/car-
testing.htm (“The idea behind car testing is that it allows manufactures to work out
27 all the kinks and potential problems of a model before it goes into full
production.”) (last viewed September 11, 2017).
28
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CLASS ACTION COMPLAINT
Case 2:19-cv-03665-CJC-AFM Document 1 Filed 04/30/19 Page 28 of 50 Page ID #:28
1 from the sheer number of reports received from dealerships and from customer
2 complaints directly to GM. GM’s customer relations department collects and
3 analyzes field data including, but not limited to, repair requests made at
4 dealerships, technical reports prepared by engineers who have reviewed vehicles
5 for which warranty coverage is being requested, parts sales reports, and warranty
6 claims data.
7 55. Defendant’s warranty department similarly analyzes and collects
8 data submitted by its dealerships in order to identify trends in its vehicles. It is
9 Defendant’s policy that when a repair is made under warranty the dealership
10 must provide GM with detailed documentation of the problem and the fix
11 employed to correct it. Dealerships have an incentive to provide detailed
12 information to GM, because they will not be reimbursed for any repairs unless
13 the justification is sufficiently detailed.
14 56. The existence of the Rim Defect is a material fact that a reasonable
15 consumer would consider when deciding whether to purchase or lease a Class
16 Vehicle. Had Plaintiff and other Class Members known of the Rim Defect, they
17 would have paid less for the Class Vehicles or would not have purchased or
18 leased them.
19 57. Reasonable consumers, like Plaintiff, reasonably expect that a
20 vehicle’s wheels are safe, will function in a manner that will not pose a safety
21 risk, and are free of defects. Plaintiff and Class Members further reasonably
22 expect that GM will not sell or lease vehicles with known safety defects, such as
23 the Rim Defect, and will disclose any such defects to its consumers when it
24 learns of them. They did not expect GM to fail to disclose the Rim Defect to
25 them and to continually deny it.
26 GM Has Actively Concealed the Rim Defect
27 58. Despite its knowledge of the Rim Defect in the Class Vehicles, GM
28
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CLASS ACTION COMPLAINT
Case 2:19-cv-03665-CJC-AFM Document 1 Filed 04/30/19 Page 29 of 50 Page ID #:29
1 actively concealed the existence and nature of the defect from Plaintiff and Class
2 Members. Specifically, GM failed to disclose or actively concealed at and after
3 the time of purchase, lease, or repair:
4 (a) any and all known material defects or material nonconformity
5 of the Class Vehicles, including the defects pertaining to the
6 wheels;
7 (b) that the Class Vehicles, including the wheels, were not in
8 good in working order, were defective, and were not fit for
9 their intended purposes; and
10 (c) that the Class Vehicles and the wheels were defective, despite
11 the fact that GM learned of such defects as early as 2015.
12 59. As discussed above, GM monitors its customers’ discussions on
13 online forums such as www.corvetteforum.com, and actively concealed the
14 defect but by denying that there had been a “rash” of wheel failures, denying the
15 existence of a defect, and blaming the customers for the problems.
16 60. When consumers present their Class Vehicles to an authorized GM
17 dealer for rim repairs or replacements, GM refuses to honor the 3-year, 36,000-
18 mile warranty, telling the customers that the rim failures are the customers’ fault.
19 61. Accordingly, despite GM’s knowledge of the Rim Defect, GM has
20 caused Class Members to expend money at its dealerships to diagnose, repair or
21 replace the Class Vehicles’ rims.
22 CLASS ACTION ALLEGATIONS
23 62. Plaintiff brings this lawsuit as a class action on behalf of himself
24 and all others similarly situated as members of the proposed Class pursuant to
25 Federal Rules of Civil Procedure 23(a) and 23(b)(3). This action satisfies the
26 numerosity, commonality, typicality, adequacy, predominance, and superiority
27 requirements of those provisions.
28
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CLASS ACTION COMPLAINT
Case 2:19-cv-03665-CJC-AFM Document 1 Filed 04/30/19 Page 30 of 50 Page ID #:30
1 66. Typicality: Plaintiff’s claims are typical of the claims of the Class in
2 that Plaintiff, like all Class Members, purchased or leased a Class Vehicle
3 designed, manufactured, and distributed by GM. The representative Plaintiff, like
4 all Class Members, has been damaged by Defendant’s misconduct in that they
5 have incurred or will incur the cost of repairing or replacing the defective
6 wheels. Furthermore, the factual bases of GM’s misconduct are common to all
7 Class Members and represent a common thread resulting in injury to the Class.
8 67. Commonality: There are numerous questions of law and fact
9 common to Plaintiff and the Class that predominate over any question affecting
10 Class Members individually. These common legal and factual issues include the
11 following:
12 (a) Whether Class Vehicles suffer from defects relating to the
13 wheels;
14 (b) Whether the defects relating to the wheels constitute an
15 unreasonable safety risk;
16 (c) Whether Defendant knows about the defects pertaining to the
17 wheels and, if so, how long Defendant has known of the
18 defect;
19 (d) Whether the defective nature of the wheels constitutes a
20 material fact;
21 (e) Whether Defendant has a duty to disclose the defective nature
22 of the wheels to Plaintiff and Class Members;
23 (f) Whether Plaintiff and the other Class Members are entitled to
24 equitable relief, including a preliminary and/or permanent
25 injunction;
26 (g) Whether Defendant knew or reasonably should have known of
27 the defects pertaining to the wheels before it sold and leased
28
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CLASS ACTION COMPLAINT
Case 2:19-cv-03665-CJC-AFM Document 1 Filed 04/30/19 Page 32 of 50 Page ID #:32
1 relatively small size of the individual Class Members’ claims, it is likely that
2 only a few Class Members could afford to seek legal redress for Defendant’s
3 misconduct. Absent a class action, Class Members will continue to incur
4 damages, and Defendant’s misconduct will continue without remedy or relief.
5 Class treatment of common questions of law and fact would also be a superior
6 method to multiple individual actions or piecemeal litigation in that it will
7 conserve the resources of the courts and the litigants and promote consistency
8 and efficiency of adjudication.
9 FIRST CAUSE OF ACTION
10 (Violation of California’s Consumers Legal Remedies Act,
11 California Civil Code § 1750, et seq.)
12 70. Plaintiff incorporates by reference the allegations contained in the
13 preceding paragraphs of this Complaint.
14 71. Plaintiff brings this cause of action on behalf of himself and the
15 CLRA Sub-Class.
16 72. Defendant is a “person” as defined by California Civil Code
17 § 1761(c).
18 73. Plaintiff and CLRA Sub-class Members are “consumers” within the
19 meaning of California Civil Code § 1761(d) because they purchased their Class
20 Vehicles primarily for personal, family, or household use.
21 74. By failing to disclose and concealing the defective nature of the
22 wheels from Plaintiff and prospective Class Members, Defendant violated
23 California Civil Code § 1770(a), as it represented that the Class Vehicles and
24 their wheels had characteristics and benefits that they do not have and
25 represented that the Class Vehicles and their wheels were of a particular
26 standard, quality, or grade when they were of another. See Cal. Civ. Code §§
27 1770(a)(5) & (7).
28
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CLASS ACTION COMPLAINT
Case 2:19-cv-03665-CJC-AFM Document 1 Filed 04/30/19 Page 34 of 50 Page ID #:34
1 California Sub-Class.
2 88. Because of their reliance on Defendant’s omissions, owners and/or
3 lessees of the Class Vehicles, including Plaintiff, suffered an ascertainable loss
4 of money, property, and/or value of their Class Vehicles. Additionally, because
5 of the Rim Defect, Plaintiff and Class Members were harmed and suffered actual
6 damages in that the Class Vehicles’ wheels are substantially certain to fail before
7 their expected useful life has run.
8 89. California Business & Professions Code § 17200 prohibits acts of
9 “unfair competition,” including any “unlawful, unfair or fraudulent business act
10 or practice” and “unfair, deceptive, untrue or misleading advertising.”
11 90. Plaintiff and Class Members are reasonable consumers who do not
12 expect their wheels to warp and crack.
13 91. Defendant knew the Class Vehicles and their wheels were
14 defectively designed or manufactured, would fail prematurely, and were not
15 suitable for their intended use.
16 92. In failing to disclose the Rim Defect, Defendant has knowingly and
17 intentionally concealed material facts and breached its duty not to do so.
18 93. Defendant was under a duty to Plaintiff and Class Members to
19 disclose the defective nature of the Class Vehicles and their wheels because:
20 (a) Defendant was in a superior position to know the true state of
21 facts about the safety defect in the Class Vehicles’ wheels;
22 and
23 (b) Defendant actively concealed the defective nature of the Class
24 Vehicles and their wheels from Plaintiff and the Class.
25 94. The facts Defendant concealed from or failed to disclose to Plaintiff
26 and Class Members are material in that a reasonable person would have
27 considered them to be important in deciding whether to purchase or lease Class
28
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CLASS ACTION COMPLAINT
Case 2:19-cv-03665-CJC-AFM Document 1 Filed 04/30/19 Page 37 of 50 Page ID #:37
1 Vehicles. Had they known of the Rim Defect, Plaintiff and the other Class
2 Members would have paid less for Class Vehicles equipped with the subject
3 wheels or would not have purchased or leased them at all.
4 95. Defendant continued to conceal the defective nature of the Class
5 Vehicles and their wheels even after Class Members began to report problems.
6 96. Defendant’s conduct was and is likely to deceive consumers.
7 97. Defendant’s acts, conduct, and practices were unlawful, in that they
8 constituted:
9 (a) Violations of California’s Consumers Legal Remedies Act;
10 (b) Violations of the Song-Beverly Consumer Warranty Act;
11 (c) Violations of the Magnuson-Moss Warranty Act; and
12 (d) Breach of Express Warranty under California Commercial
13 Code section 2313.
14 98. By its conduct, Defendant has engaged in unfair competition and
15 unlawful, unfair, and fraudulent business practices.
16 99. Defendant’s unfair or deceptive acts or practices occurred
17 repeatedly in Defendant’s trade or business and were capable of deceiving a
18 substantial portion of the purchasing public.
19 100. As a direct and proximate result of Defendant’s unfair and deceptive
20 practices, Plaintiff and Class Members have suffered and will continue to suffer
21 actual damages.
22 101. Defendant has been unjustly enriched and should be required to
23 make restitution to Plaintiff and the Class pursuant to §§ 17203 and 17204 of the
24 Business & Professions Code.
25
26
27
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1 durable, and safe transportation. Instead, the Class Vehicles are defective,
2 including the defective wheels.
3 108. The alleged Rim Defect is inherent and was present in each Class
4 Vehicle at the time of sale.
5 109. Because of Defendant’s breach of the applicable implied warranties,
6 owners and/or lessees of the Class Vehicles suffered an ascertainable loss of
7 money, property, and/or value of their Class Vehicles. Additionally, because of
8 the Rim Defect, Plaintiff and Class Members were harmed and suffered actual
9 damages in that the Class Vehicles’ wheels are substantially certain to fail before
10 their expected useful life has run.
11 110. Defendant’s actions, as complained of herein, breached the implied
12 warranty that the Class Vehicles were of merchantable quality and fit for such
13 use in violation of California Civil Code §§ 1792 and 1791.1.
14 FOURTH CAUSE OF ACTION
15 (For Breach of Express Warranty)
16 111. Plaintiff incorporates by reference the allegations contained in the
17 preceding paragraphs of this Complaint.
18 112. Plaintiff brings this cause of action on behalf of himself and on
19 behalf of the Class, or, Alternatively, the California Sub-class, against
20 Defendant.
21 113. Defendant provided all purchasers and lessees of the Class Vehicles
22 with an express warranty described infra, which became a material part of the
23 bargain. Accordingly, Defendant’s express warranty is an express warranty
24 under California law.
25 114. The wheels were manufactured and/or installed in the Class
26 Vehicles by Defendant and are covered by the express warranty.
27 115. In a section entitled “What is Covered,” Defendant’s express
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1 warranty provides in relevant part that “The warranty covers repairs to correct
2 any vehicle defect, not slight noise, vibrations, or other normal characteristics of
3 the vehicle due to materials or workmanship occurring during the warranty
4 period.” The warranty further provides that “Warranty repairs, including,
5 including towing, parts, and labor, will be made at no charge” and “[t]o obtain
6 warranty repairs, take the vehicle to a Chevrolet dealer facility within the
7 warranty period and request the needed repairs.”
8 116. According to GM, the “Bumper-to-Bumper (Includes Tires)
9 Coverage is for the first 3 years or 36,000 miles, whichever comes first.”
10 117. Defendant breached the express warranties by selling and leasing
11 Class Vehicles with wheels that were defective, requiring repair or replacement
12 within the warranty period, and refusing to honor the express warranty by
13 repairing or replacing, free of charge, the wheels. In addition, when Defendant
14 did agree to pay a portion of the costs, Defendant nevertheless breached the
15 express warranty by simply replacing Plaintiff’s and Class Members’ defective
16 wheels with similarly defective wheels, thus failing to “repair” the defect.
17 118. Plaintiff was not required to notify GM of the breach or was not
18 required to do so because affording GM a reasonable opportunity to cure its
19 breach of written warranty would have been futile. Defendant was also on notice
20 of the defect from complaints and service requests it received from Class
21 Members, from repairs and/or replacements of the wheels, and from other
22 internal sources.
23 119. As a direct and proximate cause of Defendant’s breach, Plaintiff and
24 the other Class Members have suffered, and continue to suffer, damages,
25 including economic damages at the point of sale or lease. Additionally, Plaintiff
26 and the other Class Members have incurred or will incur economic damages at
27 the point of repair in the form of the cost of repair.
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1 120. Plaintiff and the other Class Members are entitled to legal and
2 equitable relief against Defendant, including actual damages, consequential
3 damages, specific performance, attorneys’ fees, costs of suit, and other relief as
4 appropriate.
5 FIFTH CAUSE OF ACTION
6 (Breach of Written Warranty under the Magnuson-Moss Warranty Act,
7 15 U.S.C. § 2303 et seq.)
8 121. Plaintiff incorporates by reference the allegations contained in the
9 preceding paragraphs of this Complaint.
10 122. Plaintiff brings this cause of action on behalf of himself and the
11 Class against Defendant.
12 123. The Class Vehicles are a “consumer product” within the meaning of
13 the Magnuson-Moss Warranty Act, 15 U.S.C. § 2301(1).
14 124. Plaintiff and Class Members are “consumers” within the meaning of
15 the Magnuson-Moss Warranty Act, 15 U.S.C. § 2301(3).
16 125. Defendant is a “supplier” and “warrantor” within the meaning of the
17 Magnuson-Moss Warranty Act, 15 U.S.C. § 2301(4)-(5).
18 126. Defendant’s express warranty is a “written warranty” within the
19 meaning of 15 U.S.C. § 2301(6).
20 127. As set forth supra and incorporated by reference, Defendant
21 extended a 36-month, 36,000 mile Bumper-to-Bumper warranty.
22 128. Defendant breached the express warranties by selling and leasing
23 Class Vehicles with wheels that were defective, requiring repair or replacement
24 within the warranty period, and refusing to honor the express warranty by
25 repairing or replacing, free of charge, the wheels. In addition, when Defendant
26 did agree to pay a portion of the costs, Defendant nevertheless breached the
27 express warranty by simply replacing Plaintiff’s and Class Members’ defective
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1 wheels with similarly defective wheels, thus failing to “repair” the defect.
2 129. Defendant’s breach of the express warranties has deprived the
3 Plaintiff and Class members of the benefit of their bargain.
4 130. Defendant’s breach of express warranties has deprived Plaintiff and
5 Class Members of the benefit of their bargain.
6 131. The amount in controversy of Plaintiff’s individual claims meets or
7 exceeds the sum or value of $25,000. In addition, the amount in controversy
8 meets or exceeds the sum or value of $50,000 (exclusive of interests and costs)
9 computed on the basis of all claims to be determined in this suit.
10 132. Defendant has been afforded a reasonable opportunity to cure its
11 breach, including when Plaintiff and Class Members brought their vehicles in for
12 diagnoses and repair of the wheels.
13 133. As a direct and proximate cause of Defendant’s breach of written
14 warranties, Plaintiff and Class Members sustained and incurred damages and
15 other losses in an amount to be determined at trial. Defendant’s conduct
16 damaged Plaintiff and Class Members, who are entitled to recover actual
17 damages, consequential damages, specific performance, diminution in value,
18 costs, attorneys’ fees, and/or other relief as appropriate.
19 SIXTH CAUSE OF ACTION
20 (Breach of Implied Warranty under the Magnuson-Moss Warranty Act,
21 15 U.S.C. § 2303 et seq.)
22 134. Plaintiff incorporates by reference the allegations contained in the
23 preceding paragraphs of this Complaint.
24 135. Plaintiff brings this cause of action on behalf of himself and the
25 Class against Defendant.
26 136. The Class Vehicles are a “consumer product” within the meaning of
27 the Magnuson-Moss Warranty Act, 15 U.S.C. § 2301(1).
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1 137. Plaintiff and Class Members are “consumers” within the meaning of
2 the Magnuson-Moss Warranty Act, 15 U.S.C. § 2301(3).
3 138. Defendant is a “supplier” and “warrantor” within the meaning of the
4 Magnuson-Moss Warranty Act, 15 U.S.C. § 2301(4)-(5).
5 139. GM impliedly warranted that the Class Vehicles were of
6 merchantable quality and fit for use. This implied warranty included, among
7 other things: (i) a warranty that the Class Vehicles and their wheels were
8 manufactured, supplied, distributed, and/or sold by GM would provide safe and
9 reliable transportation; and (ii) a warranty that the Class Vehicles and their
10 wheels would be fit for their intended use while the Class Vehicles were being
11 operated.
12 140. Contrary to the applicable implied warranties, the Class Vehicles
13 and their wheels at the time of sale and thereafter were not fit for their ordinary
14 and intended purpose of providing Plaintiff and Class Members with reliable,
15 durable, and safe transportation. Instead, the Class Vehicles are defective,
16 including the defective design of their wheels.
17 141. Defendant’s breach of implied warranties has deprived Plaintiff and
18 Class Members of the benefit of their bargain.
19 142. The amount in controversy of Plaintiff’s individual claims meets or
20 exceeds the sum or value of $25,000. In addition, the amount in controversy
21 meets or exceeds the sum or value of $50,000 (exclusive of interests and costs)
22 computed on the basis of all claims to be determined in this suit.
23 143. Defendant has been afforded a reasonable opportunity to cure its
24 breach, including when Plaintiff and Class Members brought their vehicles in for
25 diagnoses and repair of the wheels.
26 144. As a direct and proximate cause of Defendant’s breach of implied
27 warranties, Plaintiff and Class Members sustained and incurred damages and
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1 RELIEF REQUESTED
2 152. Plaintiff, on behalf of himself and all others similarly situated,
3 request the Court to enter judgment against Defendant, as follows:
4 (a) An order certifying the proposed Class and Sub-Classes,
5 designating Plaintiff as named representative of the Class, and
6 designating the undersigned as Class Counsel;
7 (a) A declaration that Defendant is financially responsible for
8 notifying all Class Members about the defective nature of the
9 wheels, including the need for periodic maintenance;
10 (b) An order enjoining Defendant from further deceptive
11 distribution, sales, and lease practices with respect to Class
12 Vehicles; compelling Defendant to issue a voluntary recall for
13 the Class Vehicles pursuant to. 49 U.S.C. § 30118(a);
14 compelling Defendant to remove, repair, and/or replace the
15 Class Vehicles’ defective wheels with suitable alternative
16 product(s) that do not contain the defects alleged herein;
17 enjoining Defendant from selling the Class Vehicles with the
18 misleading information; and/or compelling Defendant to
19 reform its warranty, in a manner deemed to be appropriate by
20 the Court, to cover the injury alleged and to notify all Class
21 Members that such warranty has been reformed;
22 (c) A declaration requiring Defendant to comply with the various
23 provisions of the Song-Beverly Act alleged herein and to
24 make all the required disclosures;
25 (d) An award to Plaintiff and the Class for compensatory,
26 exemplary, and statutory damages, including interest, in an
27 amount to be proven at trial, except that currently, Plaintiff
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EXHIBIT 1
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___________________________
24 Anthony Nardizzi
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DECL. OF ANTHONY NARDIZZI IN SUPPORT OF PLAINTIFF’S SELECTION OF VENUE FOR TRIAL