Daniel et al v. Ford Motor Company
Filing
176
ORDER re California Consumers Legal Remedies Act ("CLRA"), signed by Senior Judge William B. Shubb on 8/29/2017. (Kirksey Smith, K)
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UNITED STATES DISTRICT COURT
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EASTERN DISTRICT OF CALIFORNIA
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----oo0oo----
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MARGIE DANIEL, individually
and on behalf of a class of
similarly situated
individuals,
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CIV. NO. 2:11-02890 WBS EFB
ORDER
Plaintiff,
v.
FORD MOTOR COMPANY, a
Delaware corporation,
Defendant.
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----oo0oo---Plaintiff Margie Daniel brought this action against
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defendant Ford Motor Company alleging a defect in the rear
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suspension geometry in new 2005 through 2011 Ford Focus vehicles.
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Presently before the court are the parties’ submissions regarding
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whether the California Consumers Legal Remedies Act (“CLRA”),
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Cal. Civ. Code §§ 1750-1784, requires proof that the alleged
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defect created an unreasonable safety risk.
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The court recognizes that there is some dispute among
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the federal district courts and the California Courts of Appeal
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as to whether the CLRA requires proof of an unreasonable risk of
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personal injury.
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No. 15-md-2624-RMW, 2016 WL 6277245, *12-13 (N.D. Cal. Oct. 27,
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2016) (CLRA fraudulent omission claim need not allege safety
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issue); Sharma v. BMW of N. Am. LLC, Case No. 13-cv-2274-MMC,
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2016 WL 4395470, *4-6 (N.D. Cal. Aug. 18, 2016) (plaintiff must
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show defect caused an unreasonable safety risk); Rutledge v.
See, e.g., In re: Lenovo Adware Litig., Case
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Hewlett-Packard Co., 238 Cal. App. 4th 1164, 1174-76 (6th Dist.
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2015) (misrepresentation may be material without any showing of
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an unreasonable safety risk).1
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However, the Ninth Circuit twice has explained that
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absent an affirmative misrepresentation, an alleged omission must
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pose a safety concern to be material.
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Motor Co., 851 F.3d 1015, 1025-26 (9th Cir. 2017) (affirming
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dismissal of CLRA fraudulent omission claim based on plaintiffs’
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failure to plausibly plead that the alleged defect constituted an
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unreasonable safety hazard); Wilson v. Hewlett-Packard Co., 668
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F3d. 1136, 1141-43 (9th Cir. 2012) (district court did not err in
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requiring plaintiffs to allege that a design defect caused an
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unreasonable safety hazard).
See Williams v. Yamaha
The Williams court explained that
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In resolving defendant’s renewed motion for summary
judgment, this court noted plaintiff’s argument that a fraudulent
omission claim no longer requires that the defect be related to a
safety concern. However, in ruling on the motion the court did
not have to decide that issue because plaintiff had established a
genuine issue of material fact as to whether the alleged defect
here involved a safety concern. (Docket No. 107 at 6 n.1.)
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to state a claim for failure to disclose a design defect, a party
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must allege, among other things, “the existence of an
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unreasonable safety hazard,” 851 F.3d at 1025-26 (citations
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omitted), citing its past decision in Wilson, 668 F.3d at 1142-
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43.
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Notably, the Ninth Circuit issued its decision in
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Williams more than two years after the California Court of
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Appeal’s decision in Rutledge, 238 Cal. App. 4th 1164.
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the Wilson court, in holding that an unreasonable risk of injury
Further,
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was required, interpreted two other decisions by the California
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Court of Appeal in Daugherty v. American Honda Motor Co., 144
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Cal. App. 4th 824, 836 (2d. Dist. 2006), and Bardin v.
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DaimlerChrysler Corp., 136 Cal. App. 4th 1255, 1270 (4th Dist.
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2006).
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Supreme Court on this issue.
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There is no clear pronouncement from the California
This court is bound by the Ninth Circuit’s
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interpretation of California law, absent a contrary ruling by the
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California Supreme Court.
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06-1150 WBS GG, 2007 WL 1723617, at *3 (E.D. Cal. June 11, 2007)
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(noting that the Ninth Circuit had predicted how the California
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Supreme Court would rule on an issue, and “barring a clear
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holding to the contrary by California's highest court, it is not
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this court’s prerogative to second guess that conclusion,”
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notwithstanding a conflicting California Court of Appeal
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decision) (citing Dimidowich v. Bell & Howell, 803 F.2d 1473,
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1482 (9th Cir. 1986)); see also Sharma, 2016 WL 4395470, at *5
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(district court held it was bound by Wilson’s requirement of an
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unreasonable safety risk notwithstanding Rutledge).
See, e.g., Johnson v. Barlow, Civ. No.
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Thus, this
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court continues to be bound by the Ninth Circuit’s interpretation
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of the CLRA, notwithstanding any decisions by the California
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Courts of Appeal which may disagree with this interpretation.2
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The court recognizes that ordinarily it “must follow
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the decision of the intermediate appellate courts of the state
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unless there is convincing evidence that the highest court of the
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state would decide differently.”
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1083 (9th Cir. 2002).
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cited by plaintiff hold that a district court is free to
See In re Watts, 298 F.3d 1077,
However, neither Watts nor any other cases
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disregard Ninth Circuit precedent in light of an intervening
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decision by a state intermediate court where the Ninth Circuit
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essentially reaffirms its prior holding after the intervening
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state court decision.
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Because the Ninth Circuit has ruled twice already,
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including this year, that a fraudulent omission claim under the
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CLRA requires that the alleged defect posed an unreasonable
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safety risk, the court will instruct the jury on this
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requirement.
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IT IS SO ORDERED.
Dated:
August 29, 2017
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In this regard, the court disagrees with Judge Whyte’s
decision in In re: Lenovo, 2016 WL 6277245, at *13 (holding that
plaintiff need not allege a safety concern because Wilson was no
longer binding in light of the Sixth District Court of Appeal’s
opinion in Rutledge).
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