Crickenberger v. Hyundai

• Citation: 404 Md. 37,944 A.2d 1136
• Decision Date: 21 March 2008
• Docket Number: No. 81, Sept. Term, 2007.,81, Sept. Term, 2007.
• Parties: Mary Susan CRICKENBERGER v. HYUNDAI MOTOR AMERICA.
• Court: Court of Special Appeals of Maryland

944 A.2d 1136

404 Md. 37

Mary Susan CRICKENBERGER v. HYUNDAI MOTOR AMERICA.

No. 81, Sept. Term, 2007.

Court of Appeals of Maryland.

March 21, 2008.

Hy David Rubenstein (Kimmel & Silverman, P.C., of Owings Mills), on brief, for appellant.

Steven R. Freeman (Brett R. Myerson of Freeman, Wolfe & Greenbaum, P.A. of Towson), on brief, for appellee.

Hugh F. Young, Jr., Product Liability Advisory Council, Inc., Reston, Va., Joel A. Dewey, Jeffrey M. Yeatman, Kelly M. Marzullo, DLA Piper US LLP, Baltimore, brief of Amicus Curiae Product Liability Advisory Council, Inc.

Argued before BELL, C.J., HARRELL, BATTAGLIA, GREENE, MURPHY, WILNER, ALAN M. (Retired, specially assigned) CATHELL, DALE R. (Retired, specially assigned), JJ.

HARRELL, J.

I.

This appeal arises from a lawsuit, over an automobile, brought in the Circuit Court for Howard County alleging breach of warranty under the Magnuson-Moss Warranty-Federal Trade Commission Improvement Act and violation of Maryland's Consumer Protection Act. On 20 November 2001, Mary Susan Crickenberger (Appellant) purchased from Antwerpen/Hyundai Kia ("Antwerpen") in Baltimore, Maryland, a 2001 Hyundai XG-300 with 8,911 miles on its odometer. A limited warranty accompanied the sale of the vehicle, stating an agreement to repair or replace any component displaying a defect in materials or workmanship. Prior to Ms. Crickenberger's purchase, the vehicle was part of the rental car fleet owned by the Hertz Corporation.

The record of this case does not indicate what, if any, maintenance the Hertz Corporation performed on the vehicle while in its ownership, or its repair record, or whether it was in any accidents. After Ms. Crickenberger acquired it, she claimed to have caused the car to be serviced for maintenance purposes on several occasions. She alleged that the Hyundai received oil service on 10 December 2001; 11 May, an unknown date in August, and 16 November 2002; 14 March, 24 September, and 1 November 2003; 24 February, 19 July, 12 November, and finally on 21 December 2004. The mileage at each of these respective intervals was 9,684; 16,251; unknown; 25,940; 31,206; 40,977; 42,760; 47,646; 54,862; 59,810; and 61,730.

Various components of the car were repaired or replaced during Ms. Crickenberger's ownership. In 2001, Antwerpen replaced the fuel pump seal. In 2002, the dealer replaced the battery and canister close valve. In 2003, Ms. Crickenberger was involved in an accident, as a consequence of which the dealer repaired the front fender and a headlamp. Also in 2003, she brought the vehicle to Antwerpen for repair of a loose windshield wiper connection. On 23 September 2003, the dealer discovered sludge in the engine while investigating why the engine was knocking. In 2004, experiencing ongoing operating problems with the car, Ms. Crickenberger returned the vehicle to Antwerpen for replacement of an output speed sensor, the alternator (twice), generator (twice), battery, spark plug wires, mass air flow sensor, input speed sensor, oil filter gasket, and an airbag. On 4 February 2005, the vehicle, with an odometer reading then of 63,700 miles, stopped working altogether. The dealer advised Ms. Crickenberger that the engine would have to be replaced. Through its authorized dealer, Antwerpen, Hyundai Motor America (Appellee, hereinafter "HM A") declined to replace the engine under the limited warranty.

Crickenberger initiated this case in the Circuit Court on 23 January 2003, alleging that the vehicle's continued need for repair established defects in the vehicle and that HMA's failure to cure the defects resulted in a breach of the Maryland Consumer Protection Act (Maryland Code (1975, 2000 Repl.Vol.), Commercial Law Article, §§ 13-101 to 13-501) and the Magnuson-Moss Warranty-Federal Trade Commission Improvement Act (15 U.S.C. §§ 2301 to 2312 (2000), hereinafter the "Magnuson-Moss Act"). As the foundation of her Magnuson-Moss Act claims, she alleged breach of express and implied warranties under Maryland Code (1975, 2002 Repl. Vol.), Commercial Law Article, §§ 2-313¹ and 2-314,² pursuant to § 2310(d)(1)³ of the Magnuson-Moss Act. The Consumer Protection Act count derived from an alleged violation of the Maryland Automotive Warranty Enforcement Act (Maryland Code (1975, 2000 Repl.Vol), Commercial Law Article, § 14-1501 to 14-1504) because, as plead, a violation of the latter also was a violation of the former.

In discovery, Ms. Crickenberger designated an expert, James E. Lewis, and indicated that he would testify at trial as to the Hyundai's repair history and loss in value as a result of the alleged defects. HMA filed a motion in limine to exclude Lewis's opinions on the grounds that they lacked an adequate factual basis, were unreliable, and constituted inadmissible speculation in violation of Maryland's requirements for the admissibility of expert witness testimony. Prior to the hearing on HMA's motion in limine, Crickenberger withdrew her designation of Mr. Lewis as her expert. No other expert witness was advanced by her on the issues of causation or damages.

HMA filed a Motion for Summary Judgment asserting that Crickenberger could not prevail on her breach of warranty (Magnuson-Moss Act) claims because, without expert testimony, she could not prove the existence of a defect attributable to the manufacturer at the time of sale, HMA's failure to correct alleged defects in violation of warranty, or the amount of damages caused by a defect. HMA also argued that Ms. Crickenberger could not prevail on her Maryland Consumer Protection Act claim as it was derivative of a violation of the Automotive Warranty Enforcement Act, which was inapplicable because the Hyundai was owned previously at the time she purchased it. As to her Consumer Protection Act count, Crickenberger did not contest its inapplicability and conceded as much. As to HMA's Motion concerning the Magnuson-Moss Act, she filed an opposition alleging that proof of a violation of the Act does not require expert testimony or proof of a specific defect. The Circuit Court, after a hearing, granted HMA's motion, finding that expert testimony would be required to prove causation and damages before Ms. Crickenberger could recover under the Act. Because no such expert was identified, the court determined HMA was entitled to judgment as a matter of law.

Crickenberger appealed to the Court of Special Appeals. In her brief filed in the intermediate appellate court, she framed three arguments: (1) in breach of limited or implied warranty claims under the Magnuson-Moss Act, expert' testimony is not required to prove a product contained a defect existing at the time of sale; (2) a consumer does not bear the burden of proving a specific defect to prevail on breach of limited or implied warranty claims under the Act; and (3) expert testimony is unnecessary to prove damages under the Act. We issued a writ of certiorari, on our own initiative, while the appeal was pending before that court. Crickenberger v. Hyundai 402 Md. 36, 935 A.2d 406 (2007).

III.

Ms. Crickenberger offers two principal arguments to support her main thesis that expert testimony is unnecessary in order to link her Hyundai's malfunctions with a defect in the vehicle attributable to the manufacturer. First, she argues that, under the Magnuson-Moss Act, a consumer need not prove a specific defect to prevail, even if the derivative state law would require such proof. Second, she argues that Maryland law does not require expert testimony where, as here, the particular product required so many repairs. Crickenberger asserts that the alleged circumstantial evidence of a defect (her record of service and repairs in this case) sufficiently raised triable questions of fact as to causation and defect. Where circumstantial evidence is relied on, she concludes, expert testimony "is one of the factors, but not the only factor, to be considered in determining whether a defect may be inferred. ..." In other words, the record of repairs she proposed to submit as evidence is circumstantial evidence of a breach of a limited or implied warranty sufficient, standing alone, to raise triable questions of fact under the Magnuson-Moss Act and Maryland law.

A.

We review the trial court's grant of HMA's Motion for Summary Judgment de novo as to the law and in a light most favorable to Ms. Crickenberger, the nonmoving party. Hill v. Cross Country Settlements, LLC, 402 Md. 281, 294, 936 A.2d 343, 350-51 (2007), "Summary judgment is appropriate where `there is no genuine dispute as to any material fact' and `the party in whose favor judgment is entered is entitled to judgment as a matter of law.'" Id. (quoting Maryland Rule 2-501(f)). "[T]he mere existence of a scintilla of evidence in support of the plaintiffs' claim is insufficient to preclude the grant of summary judgment; there must be evidence upon which the jury could reasonably find for the plaintiff." Beatty v. Trailmaster Prods., Inc., 330 Md. 726, 738-39, 625 A.2d 1005, 1011 (1993) (citing Anderson v. Liberty Lobby, Inc., All U.S. 242, 252, 106 S.Ct. 2505, 2512, 91 L.Ed.2d 202 (1986)). "[W]hile a court must resolve all inferences in favor of the party opposing summary judgment, `those inferences must be reasonable ones.'" Beatty, 330 Md. at 739, 625 A.2d at 1011 (1993) (quoting Clea v. City of Bolt, 312 Md. 662, 678, 541 A.2d 1303, 1310 (1988)).

B.

In 1975, Congress enacted the Magnuson-Moss Act to improve the "clarity, truth, and strength of consumer product warranties." 1 DAVID G. OWEN ET AL., MADDEN AND OWEN ON PRODUCTS LIABILITY 3d. § 4.23 (2000) (hereinafter MADDEN AND OWEN). Sellers who issue warranties or provide service contracts for consumer products, such as vehicles, are under certain obligations standardized by the Federal Law. Id. Written warranties must be labeled "full" or "limited," and terms of the warranty must be "fully, conspicuously, and clearly disclosed" in order to prevent deception. Id.; 15...