Suber v. Chrysler Corp.
| Decision Date | 18 February 1997 |
| Docket Number | No. 95-5735,95-5735 |
| Citation | 104 F.3d 578 |
| Parties | James SUBER, Appellant, v. CHRYSLER CORPORATION v. KONTINENTAL KOACHES, INC., a/k/a and d/b/a Kontinental Konversions, Third-party defendant Chrysler Corporation, Third-party plaintiff. |
| Court | U.S. Court of Appeals — Third Circuit |
Robert M. Silverman (argued), Cynthia M. Certo, Kimmel & Silverman, Blue Bell, PA, for Appellant.
Kevin M. Mckeon (argued), Marshall, Dennehey, Warner, Coleman & Goggin, Marlton, NJ, for Appellee.
Before: BECKER, STAPLETON, and MICHEL, Circuit Judges. *
This appeal in a "Lemon law" case presents the question whether the district court erred in dismissing for lack of subject matter jurisdiction the claims of the plaintiff, James Suber, brought against Chrysler Corporation on account of alleged defects in the 1993 Dodge Ram 250 Conversion Van that he purchased from a Chrysler dealership, Cherry Hill Dodge. The district court held that Suber's claims failed to meet the $50,000 amount in controversy requirement of the federal diversity statute, 28 U.S.C. § 1332, inasmuch as: (1) the New Jersey Consumer Fraud Act was inapplicable, rendering Suber ineligible for the treble damages that are available under that statute; and (2) Suber's remaining claims did not satisfy the jurisdictional requirement.
We review the dismissal of Suber's complaint for failure to establish subject matter jurisdiction, hence we consider only whether plaintiff's claims, taken as true, allege facts sufficient to invoke the jurisdiction of the district court. Licata v. U.S. Postal Serv., 33 F.3d 259, 260 (3d Cir.1994). Because we find that the district court dismissed the complaint without properly evaluating Suber's claims under the prevailing standard of St. Paul Mercury Indemnity Co. v. Red Cab Co., 303 U.S. 283, 58 S.Ct. 586, 82 L.Ed. 845 (1938), we vacate and remand for further proceedings.
Suber purchased the Dodge van from Cherry Hill Dodge ("the dealership") on April 28, 1993. 2 Prior to Suber's purchase, Kontinental Koaches, Inc., a third-party defendant, renovated the van, installing new seats, carpeting, upholstery, a sofa, and other accessories. The sticker price of the car, with these improvements, was approximately $29,895.00. Almost immediately after taking possession, Suber discovered problems with the van, especially its suspension. In particular, the van had a tendency to "bottom out," even on relatively smooth road surfaces.
Suber avers that he returned the van to the dealer at least four times over the course of several months. When he returned the van on May 10, 1993, he complained of the "bottoming out," as well as a harsh ride, steering drift, and other defects. One week later, on May 17, 1993, he complained about the van's suspension, steering, brakes, driver's seat, rear door handle, electrical system, and the running boards. The dealership told Suber that nothing was wrong with the van, but balanced the tires.
Because the problems with his van persisted, Suber returned to the dealership on June 9, 1993 with the same complaints. The dealership serviced the van, by aligning the front end and balancing the wheels, but again told Suber that there was nothing wrong. A few weeks later, on or around June 25, 1993, the van "bottomed out" so severely that it caused one of the front tires to go flat. Suber had the tire replaced on his own, without returning to the dealership.
On June 28, 1993, Suber filed a claim with the Customer Arbitration Board ("CAB"), an informal dispute resolution body established by Chrysler under the New Jersey Lemon Law, N.J.S.A 56:12-36. Pursuant to CAB procedures, a Chrysler representative, George Bomanski, and a dealership employee inspected and road tested the van. According to Suber, both men told him that there was a problem with the van's suspension. However, the official report filed by Bomanski stated that the suspension system was fine. By letter dated August 5, 1993, the CAB found that Suber's complaint regarding the suspension was groundless, and it denied Suber's request for a refund of the purchase price because "the use, value and safety of [the] vehicle has not been substantially impaired." 3
According to Suber, the suspension problems persisted through July 1993. The van failed Pennsylvania motor vehicle inspection at that time because of its suspension, including "obviously compressed front springs." Additionally, Suber claims that he returned the van to the dealership on two occasions when the dealership did not supply him with a copy of the repair invoice.
On July 16, 1993, Suber again left the van with the dealership for service. This appears to be the same day that he met with Bomanski and the dealership employee for the CAB inspection. The dealership told him that it would contact him when the repairs were completed. On August 16, 1993, having heard nothing, he called and was informed that his van was not yet ready. He went to the dealership and found his van parked in the back lot. The dealership's repair invoices show that the last work on the van was performed on July 22, 1993.
Subsequent to Suber's last repair attempt, Chrysler sent to owners of 1993 and 1994 Dodge Ram Vans and Wagons, including Suber, a "Customer Satisfaction Notification." This notice informed these Dodge owners that the front coil springs on their vehicles needed to be replaced:
The service is needed to prevent the front suspension from bottoming out when traveling over rough surfaces. Without the service we are offering, the vehicle identified on the enclosed form may exhibit a harsh ride or suspension noises. We ask that you arrange for this important service without delay.
In conjunction with this notice, Chrysler sent to its dealers a "Technical Services Bulletin" dated September 3, 1993 that detailed the repair work necessary to correct suspension problems like those experienced by Suber.
Suber contends that his van's suspension is defective to this day, and that the van has never passed the Pennsylvania inspection. A mechanic retained by Suber's counsel inspected the car on March 2, 1995 and found that the suspension system was in an "extremely dangerous condition" and that the car was unsafe to drive. In response, Chrysler points out that Suber has continued to drive the van. At the time of the CAB inspection in July 1993, the van had 5057 miles on it. When a Chrysler representative road tested the van on March 13, 1995, it had 16,514 miles on it. The Chrysler representative concluded that the van has no suspension problems.
Suber filed a complaint against Chrysler in the District Court for the District of New Jersey, alleging violations of the New Jersey Automobile Lemon Law, N.J.S.A § 56:12-29 et seq.; the Magnuson-Moss Warranty Act, 15 U.S.C. § 2301 et seq.; the New Jersey Uniform Commercial Code, N.J.S.A. § 12A:1-101 et seq.; and the New Jersey Consumer Fraud Act, N.J.S.A. § 56:8-1 et seq. ("NJCFA"). Suber alleged that the district court had subject matter jurisdiction under the diversity statute because the amount in controversy exceeds $50,000. 4 Soon after the complaint was filed, the district court considered sua sponte whether it had subject matter jurisdiction and issued an Order to Show Cause. The plaintiff responded by letter, and the court withdrew the order. Chrysler then moved for summary judgment, asserting that the evidence could not support Suber's legal claims.
On September 5, 1995, the district court sua sponte dismissed Suber's complaint for lack of subject matter jurisdiction, Fed.R.Civ.P. 12(b)(1), holding that the amount in controversy did not exceed $50,000. Relying on a New Jersey Appellate Division decision, D'Ercole Sales, Inc. v. Fruehauf Corp., 206 N.J.Super. 11, 501 A.2d 990 (App.Div.1985), the court held that the "New Jersey Consumer Fraud Act, which contains a mandatory treble damage provision, is inapplicable to the case at bar," Mem. Op. at 3-4, because Suber failed to "provide [the district court] with evidence of defendant's allegedly unconscionable conduct or 'substantial aggravating circumstances' surrounding defendant's alleged breach of the express warranties." Id. at 3. Under D'Ercole Sales, breach of warranty without substantial aggravating circumstances is not actionable as a NJCFA claim.
Having found that Suber could not rely on the treble damages available under the NJCFA to meet the amount in controversy requirement, the court stated that it was satisfied "to a legal certainty" that Suber's remaining claims could not exceed the $50,000 barrier. Id. at 4. It reasoned that the maximum amount that the plaintiff could recover under either the Magnuson-Moss Warranty Act or the Lemon Law is the full refund price of the vehicle if found defective, $29,895.00. The court noted that attorney's fees should be included, but stated that these fees would have to exceed $20,105.00 to get to the jurisdictional amount, which it held would be clearly excessive. Id.
Suber has filed a timely appeal, contending primarily that the district court failed to apply the proper test for determining the amount in controversy. Our review of the order dismissing the complaint is plenary. See Packard v. Provident Nat'l Bank, 994 F.2d 1039, 1044 (3d Cir.), cert. denied sub nom. Upp v. Mellon Bank, N.A., 510 U.S. 964, 114 S.Ct. 440, 126 L.Ed.2d 373 (1993).
For a plaintiff to establish federal diversity jurisdiction, the amount in controversy must exceed $50,000, exclusive of interest and costs. 28 U.S.C. § 1332(a). The standard for determining whether a plaintiff's claims satisfy the amount in controversy requirement was set out by the Supreme Court in St. Paul Mercury Indemnity Co. v. Red Cab Co., 303 U.S. 283, 58 S.Ct. 586, 82 L.Ed. 845 (1938), as follows:
The rule governing dismissal for...
To continue reading
Request your trial
-
Pierre v. Planet Auto., Inc.
...§ 1367(a) ; and then citing Voelker v. Porsche Cars North America, Inc. , 353 F.3d 516, 522 (7th Cir.2003) )); Suber v. Chrysler Corp. , 104 F.3d 578, 589 (3d Cir.1997) ("[T]he [district] court can exercise supplemental jurisdiction over the Magnuson–Moss Act claim." (citing 28 U.S.C. § 136......
-
In re the Prudential Ins. Co. of America
...("dismissal is appropriate only if the federal court is certain that the jurisdictional amount cannot be met"); Suber v. Chrysler Corp., 104 F.3d 578, 583 (3d Cir.) (same). Members of a class may not aggregate their claims to reach the $50,000 amount in controversy requirement. See Zahn, 41......
-
Bryant v. New Jersey Dept. of Transp.
...Co., 981 F.Supp. 334, 338 (D.N.J. 1997); Porter v. United States, 919 F.Supp. 927, 929 (E.D.Va.1996); see also Suber v. Chrysler Corp., 104 F.3d 578, 581 (3d Cir. 1997). As part of an economic redevelopment project, the defendants, the State of New Jersey, the New Jersey Department of Trans......
-
Brunson Communications, Inc. v. Arbiron, Inc.
...alleged diversity of citizenship and an amount in controversy in excess of $100,000. See Amended Complaint 111-3; Suber v. Chrysler Corp., 104 F.3d 578, 583 (3d Cir.1997) ("Once a good faith pleading of the amount in controversy vests the district court with diversity jurisdiction, the cour......
-
Ninth Circuit Panel Holds Attorneys' Fees May Be Included In The Magnuson-Moss Warranty Act's Amount In Controversy When Available To Prevailing Plaintiffs
...adopted the Fourth Circuit's reasoning. See Ansari v. Bella Auto. Grp., 145 F.3d 1270, 1271 (11th Cir. 1998); Suber v. Chrysler Corp., 104 F.3d 578, 588 n.12 (3d Cir. 1997); Boelens v. Redman Homes, Inc., 748 F.2d 1058, 1069 (5th Cir. 1984). The Seventh Circuit, on the other hand, does incl......