Robinson v. American Honda Motor Co., Inc., 07-1668.

• Citation: 551 F.3d 218
• Decision Date: 05 January 2009
• Docket Number: No. 07-1668.,07-1668.
• Parties: Paul F. ROBINSON, Plaintiff-Appellant, v. AMERICAN HONDA MOTOR COMPANY, INCORPORATED; Michelin North America, Incorporated, Defendants-Appellees.
• Court: United States Courts of Appeals. United States Court of Appeals (4th Circuit)

551 F.3d 218

Paul F. ROBINSON, Plaintiff-Appellant, v. AMERICAN HONDA MOTOR COMPANY, INCORPORATED; Michelin North America, Incorporated, Defendants-Appellees.

No. 07-1668.

United States Court of Appeals, Fourth Circuit.

Argued: September 25, 2008.

Decided: January 5, 2009.

ARGUED: Thomas Joseph Minton, Goldman & Min-Ton, P.C., Baltimore, Maryland, for Appellant. Roy Morse Brisbois, Lewis, Brisbois, Bisgaard & Smith,

L.L.P., Los Angeles, California; Peter W. Herzog, III, Bryan Cave, L.L.P., St. Louis, Missouri, for Appellees. ON BRIEF: Jon P. Kardassakis, Lewis, Brisbois, Bisgaard & Smith, L.L.P., Los Angeles, California, Robert B. Green, David B. Irwin, Irwin, Green & Dexter, L.L.P., Towson, Maryland, for Appellee American Honda Motor Company, Incorporated; Richard P. Cassetta, Bryan Cave, L.L.P., St. Louis, Missouri, Joel A. Dewey, Jeffrey M. Yeatman, DLA Piper U.S. LLP, Baltimore, Maryland, for Appellee Michelin North America, Incorporated.

Before NIEMEYER and AGEE, Circuit Judges, and RICHARD L. VOORHEES, United States District Judge for the Western District of North Carolina, sitting by designation.

Affirmed by published opinion. Judge VOORHEES wrote the opinion, in which Judge NIEMEYER and Judge AGEE joined.

OPINION

VOORHEES, District Judge:

Paul F. Robinson ("Robinson") appeals a district court order dismissing pursuant to FED.R.CIV.P. 12(b)(6) his claims against American Honda Motor Co., Inc. ("Honda") and Michelin North America, Inc. ("Michelin"), alleging breach of express and implied warranties regarding the durability of the tires on his minivan and seeking a declaratory judgment in his favor. We affirm.

I.

Robinson purchased a new Honda Odyssey Touring model minivan in March 2005 from an authorized Honda dealer in Towson, Maryland. Robinson's new Honda minivan came equipped with four "PAX System" tires manufactured by Michelin. Through a purpose-built wheel-rim and tire combination, PAX System tires are designed to provide a "run-flat" capability. If a tire is punctured, the minivan can still be driven at speeds of up to 55 mph for a distance of up to 125 miles. PAX System tires are standard equipment on the Touring model of the Honda Odyssey. Because of the PAX System's unique wheel-rim and tire combination, no other brand or model of tire will fit on the minivan unless the wheels themselves are replaced.

Honda provided a 2005 Honda Odyssey Warranties booklet to each purchaser of a 2005 Honda minivan. This booklet states in relevant part:

Your vehicle is covered for 3 years or 36,000 miles, whichever comes first.

Warranty Coverage

Honda will repair or replace any part that is defective in material or workmanship under normal use. See Proper Operation on page 40. All repairs/replacements made under this warranty are free of charge. The replaced or repaired parts are covered only until this New Vehicle Warranty expires.

This New Vehicle Warranty Does Not Cover:

• Emissions control systems, Accessories, Batteries, or Tires (They have their own warranties).

• Normal wear or deterioration of any part.

J.A. 53.

A separate section in the 2005 Honda Odyssey Warranties booklet is devoted solely to tires. It states:

Tires

The tires that come as original equipment on your new Honda are warranted by their manufacturer (including the compact spare tire). A separate warranty statement for the tires is in the glove box.

Obtaining Warranty Service

Your Honda dealer will be glad to help in determining if a problem in your vehicle is caused by a defective tire. He can also assist you in locating a local representative of the tire's manufacturer so you can get warranty service.

J.A. 70.

That the warranty excludes tires is also made clear in the "A Quick Reference to Warranty Coverages" section at the beginning of the booklet:

New Vehicle Limited Warranty

Every new Honda is covered, except for tires, for 3 years or 36,000 miles. The tires are warranted separately.

J.A. 48.

Lastly, in a section entitled "Operation and Maintenance of Your Honda," the warranty booklet declares that "[b]y keeping your Honda in top condition, you will be rewarded with years of trouble-free service at the lowest operating cost. The keys to keeping your Honda in top condition are proper operation and regular maintenance." J.A. 79.

The Michelin warranty that came with Robinson's Honda minivan is entitled PAX ® SYSTEM TIRE LIMITED WARRANTY. Under the heading "WHAT IS COVERED AND FOR HOW LONG," the document states, inter alia, that "Michelin PAX System tires, used in normal service . . . are covered by this warranty against defects in workmanship and materials, for the life of the original usable tread or 6 years from the date of purchase, whichever comes first. At that time, all warranties, express or implied, expire." J.A. 122A.

A separate section delineates "WHAT IS NOT COVERED BY THE LIMITED WARRANTY OR MICHELIN PAX SYSTEM ASSURANCE PLAN." J.A. 122B. Among other things, the warranty does not apply to "tires and support rings which become unrepairable and/or unserviceable due to . . . [u]neven or rapid wear which results from mechanical irregularity in the vehicle such as wheel misalignment (a measured tread difference of 2/32 nds of an inch or more across the tread of the same tire)." J.A. 122B.

Also relevant to the present case, the warranty contains a section that describes "HOW REPLACEMENT CHARGES ARE CALCULATED." This section states:

If a Michelin PAX System tire becomes unserviceable due to a workmanship or materials condition or a road hazard injury during the first 24 months of service or before 50% of the tread is worn, whichever occurs first, Michelin will furnish a comparable new Michelin PAX System replacement tire at NO CHARGE. . . .

If a Michelin PAX System tire becomes unserviceable due to a workmanship or materials condition or a road hazard injury after the free replacement period, Michelin will furnish a comparable Michelin PAX System replacement tire on a pro rata basis. [A dealer] shall determine the charge by multiplying the percentage of the original usable tread worn, by the current selling price. . . .

J.A. 122B.

Robinson used the car for personal and family purposes and had the tires rotated by the Honda dealer at the recommended maintenance intervals. After 18 months and less than 18,000 miles of use, Robinson noticed what he characterized as "excessive wear" on the tires, "particularly on the outside edge of the tread and sidewall." J.A. 10. Upon going to a local tire shop to purchase new tires, Robinson was informed that only Michelin PAX System tires would fit on his minivan's wheel-rims and that these tires could only be installed by his Honda dealer. When Robinson went to his Honda dealer, he was advised that he needed four new tires at a cost of over $1,200. The dealer stated that the tires were not warranted by Honda and offered to put Robinson in contact with Michelin. Robinson spoke with a Michelin representative who offered to pay 25% of the replacement cost of the tires. This set-off was calculated based on the amount of tread remaining on the tires.

Robinson refused this offer and shortly thereafter filed suit against Honda and Michelin in the Circuit Court for Montgomery County, Maryland in November 2006. The complaint alleged four counts, all of which were asserted against both defendants: (I) Breach of Express Warranty, (II) Breach of Implied Warranty, (III) Declaratory Judgment, and (IV) Consumer Fraud. Count III, seeking a declaratory judgment, asked the court to construe the terms of the parties' warranties. Robinson purported to act for a class of similarly situated Honda Odyssey owners whose vehicles were also equipped with the PAX System tires.¹

Honda removed the case to the United States District Court for the District of Maryland (Southern Division) pursuant to the Class Action Fairness Act of 2005, 28 U.S.C. § 1332(d). Both Honda and Michelin filed motions to dismiss all counts pursuant to FED.R.CIV.P. 12(b)(6) for Counts I-III and FED.R.CIV.P. 9(b) for Count IV. After briefing, the district court held a hearing on these motions on June 11, 2007. At the conclusion of the hearing, the court granted both motions to dismiss all counts, stating its reasoning in an oral opinion delivered from the bench. Counts I-III were dismissed with prejudice, while Count IV was dismissed without prejudice so that Robinson could amend his complaint and refile as to Count IV if he wished. Robinson chose not to do so, and Count IV is not before this court on appeal. On July 5, 2007, final judgment was entered in favor of Honda and Michelin on all counts. This appeal was timely filed on July 10, 2007.

II.

The standard of review for dismissal pursuant to Rule 12(b)(6) is de novo. Schatz v. Rosenberg, 943 F.2d 485, 489 (4th Cir.1991) (citation omitted). This court will construe factual allegations in the non-moving party's favor and will treat them as true, but the court is not bound by the complaint's legal conclusions. Id. To survive a Rule 12(b)(6) motion to dismiss, the facts alleged "must be enough to raise a right to relief above the speculative level" and must provide "enough facts to state a claim to relief that is plausible on its face." Bell Atl. Corp. v. Twombly, 550 U.S. 544, 127 S.Ct. 1955, 1965, 1974, 167 L.Ed.2d 929 (2007).

Although the express warranties of Honda and Michelin were not attached to Robinson's complaint,² this court may consider them when reviewing the motion to dismiss because the warranties were integral to and explicitly relied on in the complaint and because Robinson agrees that the warranties provided are authentic. See Phillips v. LCI Int'l, Inc., 190 F.3d 609, 618 (4th Cir.1999). These warranties were also relied upon by the district court in rendering its decision.

III.

Count One

(Breach of Express Warranties)

To state a claim for breach of express warranty under Maryland law, a plaintiff must allege "1) a warranty existed; 2) the...