In re Toyota Motor Corp.. Unintended Acceleration Mktg.

Citation754 F.Supp.2d 1145
Decision Date30 November 2010
Docket NumberCase No. 8:10ML 02151 JVS (FMOx).
CourtU.S. District Court — Central District of California
PartiesIn re TOYOTA MOTOR CORP. UNINTENDED ACCELERATION MARKETING, SALES PRACTICES, AND PRODUCTS LIABILITY LITIGATION.This document relates to: All economic loss cases.

754 F.Supp.2d 1145

In re TOYOTA MOTOR CORP. UNINTENDED ACCELERATION MARKETING, SALES PRACTICES, AND PRODUCTS LIABILITY LITIGATION.This document relates to: All economic loss cases.

Case No. 8:10ML 02151 JVS (FMOx).

United States District Court, C.D. California.

Nov. 30, 2010.


[754 F.Supp.2d 1151]

Andrea Bierstein, Clinton B. Fisher, Jayne Conroy, Mitchell M. Breit, Paul J. Hanly, Jr., Thomas I. Sheridan, III, Hanly Conroy Bierstein Sheridan Fisher & Hayes LLP, Michael A. London, Douglas & London, Chaim B. Book, Moskowitz Book & Walsh, LLP, New York, NY, Daniel H. Chang, Diversity Law Group APC, Edward Wonkyu Choi, Choi & Associates Law Offices, Gretchen M. Nelson, Kreindler & Kreindler LLP, H. Scott Leviant, Ira R. Spiro, J. Mark Moore, Spiro Moss LLP, Howard B. Miller, Thomas Vincent Girardi, Girardi & Keese LLP, Dana B. Taschner, Lanier Law Firm, Marc M. Seltzer, Ryan C. Kirkpatrick, Steven G. Sklaver, Susman Godfrey LLP, Craig J. Ackermann, Ackermann & Tilajef PC,

[754 F.Supp.2d 1152]

Brian R. Strange, Gretchen Carpenter, John Peter Ohanesian, Strange and Carpenter, Lionel Zevi Glancy, Michael Marc Goldberg, Glancy Binkow & Goldberg LLP, Mark John Geragos, Shelley Kaufman, Tamar G. Arminak, Geragos and Geragos, Los Angeles, CA, David C. Wright, Jae Kook Kim, Kristy M. Arevalo, Richard D. McCune, Jr., McCune and Wright LLP, Redlands, CA, Derek Yeats Brandt, Simmons Browder Gianaris Angelides & Barnerd LLC, East Alton, IL, Peter J. Cambs, Jordan Lucas Chaikin, Parker Waichman Alonso LLP, Bonita Springs, FL, Fred R. Rosenthal, Fred Rosenthal Law Offices, Port Washington, NY, Lisa M. Hasselman, Steve W. Berman, Hagens Berman Sobol Shapiro LLP, Seattle, WA, Behram V. Parekh, Heather Marie Peterson, Michael L. Kelly, Kirtland & Packard LLP, El Segundo, CA, Ben Barnow, Barnow & Associates PC, Kenneth A. Wexler, Wexler Wallace LLP, Chicago, IL, Gene J. Stonebarger, Stonebarger Law, APC, Folsom, CA, David M. Arbogast, Jeffrey K. Berns, Arbogast & Berns LLP, Woodland Hills, CA, Mark P. Robinson, Jr., Robinson Calcagnie & Robinson, Newport Beach, CA, Thomas Joseph O'Reardon, II, Timothy G. Blood, Blood Hurst & O'Reardon LLP, Samuel M. Ward, Stephen R. Basser, Barrack Rodos & Bacine, San Diego, CA, Camilo Kossy Salas, III, Salas LC, Cayce Christian Peterson, Hugh Palmer Lambert, Linda Jane Nelson, Lambert & Nelson PLC, Matthew B. Moreland, Attorney at Law, New Orleans, LA, Daniel E. Becnel, Jr., Jennifer L. Crose, June Anne Oswald, Becnel Law Firm, LLC, Reserve, LA, Diane Kay Zink, Attorney at Law Robert M. Becnel, Law Offices of Robert M. Becnel, Christopher Devon Becnel, Toni B. Becnel, Becnel Law Firm, LLC, LaPlace, LA, John Francis Nevares, Attorney at Law, San Juan, PR, Lance August Harke, Harke & Clasby, Miami, FL, J. Andrew Meyer, Tamra Carsten Givens, Morgan & Morgan, PA, Tampa, FL, Scott W. Weinstein, Morgan & Morgan PA, Fort Myers, FL, Andres A. Alonso, Andres F. Alonso, Melanie H. Muhlstock, David Bruce Krangle, Parker Waichman Alonso LLP, Great Neck, NY, Denyse F. Clancy, Renee M. Melancon, Bruce W. Steckler, Baron & Budd PC, Dallas, TX, Benjamin L. Bailey, Eric B. Snyder, Robert P. Lorea, Rodney Arthur Smith, Bailey & Glasser LLP, Edgar F. Heiskell, III, Attorney at Law, Charleston, WV, Mark S. Baumkel, Bingham Farms, MI, Gerarld J. Rodos, Jeffrey B. Gittleman, Mark R. Rosen, Barrack Rodos & Bacine, Jeffrey L. Osterwise, Jon J. Lambiras, Sherrie R. Savett, Berger & Montague PC, Larry Pitt, Larry Pitt & Associates PC, Philadelphia, PA, Arthur Camden Lewis, Keith M. Babcock, Lewis & Babcock LLP, John S. Simmons, Simmons Law Firm LLC, Columbia, SC, Thomas J. Murray, Thomas J. Murray & Associates Inc., James L. Murray, John T. Murray, Dennis E. Murray, Jr., Dennis E. Murray, Sr., Margaret M. Murray, William H. Bartle, Murray & Murray Co. LPA, Sandusky, OH, Elizabeth Joan Cabraser, Nimish R. Desai, Robert J. Nelson, Todd A. Walburg, Lieff Cabraser Heimann and Bernstein LLP, San Francisco, CA, Christopher David Stock, Robert Alan Steinberg, Stanley M. Chesley, Wilbert Benjamin Markovits, Waite Schneider Bayless & Chesley Co. LPA, Cincinnati, OH, James E. Cecchi, Lindsey H. Taylor, Carella Byrne Bain Gilfillan Cecchi Stewart & Olstein, Roseland, NJ, Charles T. Lester, Jr., Eric C. Deters, Eric C. Deters & Associates, P.S.C., Independence, KY, Ralph K. Phalen, Ralph K. Phalen Law PC, Kansas City, MO, W. Mark Lanier, The Lanier Law Firm, Fletcher V. Trammell, Bailey Perrin Bailey, Houston, TX, Donald C. Coggins, Jr., John Belton White, Jr., Harrison White Smith and Coggins, Spartanburg, SC, Mark J. Tamblyn, Neha Duggal, Wexler Wallace LLP, Sacramento, CA, Jennifer K. Berg, Baron & Budd PC, Beverly

[754 F.Supp.2d 1153]

Hills, CA, Laura L. Singletary, Mary Nell Bennett, Richard Joseph Arsenault, Neblett Beard & Arsenault, Alexandria, LA, John R. Climaco, Climaco Lefkowitz Peca Wilcox and Garofoli, Cleveland, OH, for Plaintiff.Andrew B. Cooke, Elizabeth L. Taylor, Flaherty Sensabaugh & Bonasso, Rebecca A. Betts, David B. Thomas, Nicholas S. Johnson, Allen Guthrie McHugh and Thomas, Charleston, WV, Anne O. Hanna, Vincent Galvin, Jr., Bowman and Brooke LLP, San Jose, CA, Craig Carpenito, Judith Anna Amorosa, Karl Geercken, Kristin Ann Meister, Matthew Carl Decker, Alston and Bird LLP, New York, NY, Cari K. Dawson, Derin B. Dickerson, Kyle G.A. Wallace, Alston & Bird LLP, Atlanta, GA, Clem C. Trischler, James F. Marrion, Pietragallo Gordon Alfano Bosick & Raspanti, LLP, Paula J. Allan, Eckert, Seamans, Cherin & Mellott, Pittsburgh, PA, Daniel W. Olivas, J. Randolph Bibb, Jr., Lewis, King, Krieg & Waldrop, P.C., Donna L. Roberts, Stephen H. Price, Stites & Harbison, PLLC, Nashville, TN, Gregory A. Harrison, Dinsmore & Shohl, Cincinnati, OH, James Karl Viehman, Hartline Dacus et al., Darren L. McCarty, Alston & Bird, LLP, Dallas, TX, John D. Arya, Lisa Gilford, Roger A. Cerda, Stephanie Ann Jones, Alston & Bird LLP, Rachel Aleeza Rappaport, Loeb & Loeb LLP, Los Angeles, CA, Kathryn Ashley Meyers, Michael Ross Tein, Lewis Tein PL, Coconut Grove, FL, Mary Michelle Kranzow, William Francis Auther, Bowman & Brooke LLP, Phoenix, AZ, Patrick Darrow Wilson, Wright, Lindsey & Jennings, Little Rock, AR, Paul J. Osowski, Nelson Mullins Riley & Scarborough, LLP, Charlotte, NC, Ross W. Johnson, Faegre & Benson LLP, Des Moines, IA, Steven A. McKelvey, William H. Latham, Nelson Mullins Riley & Scarborough LLP, Angela Gilbert Strickland, Pamela J. Roberts, Bowman & Brooke LLP, Columbia, SC, Todd E. Kennedy, Lionel, Sawyer & Collins, Greg W. Marsh, Law Offices of Greg W. Marsh, Las Vegas, NV, C. Brandon Wisoff, Douglas R. Young, Farella Braun and Martel LLP, San Francisco, CA, Bridget M. Ahmann, Demoya R. Gordon, Faegre & Benson LLP, Minneapolis, MN, Charles A. Getto, McAnany, Van Cleave & Phillips, P.A., Holly P. Smith, Shook Hardy & Bacon LLP, Kansas City, MO, Colvin Gamble Norwood, Jr., Henri Wolbrette, III, Jose L. Barro, III, Mark N. Bodin, Patrick J. O'Cain, McGlinchey Stafford, PLLC, New Orleans, LA, Dennis P. Ziemba, Edward A. Gray, Eckert Seamans Cherin & Mellott LLC, Philadelphia, PA, David L. Ayers, Todd Jefferson Hartley, Watkins & Eager, Jackson, MS, David T. Schaefer, Dinsmore & Shohl, Louisville, KY, De Martenson, Huie Fernambucq & Stewart LLP, Birmingham, AL, Joel A. Dewey, DLA Piper U.S. LLP, Baltimore, MD, Jonathan Hale Claydon, Jose A. Isasi, Jose Antonio Isasi II, Greenberg Traurig, LLP, Chicago, IL, Karoline E. Jackson, Michael Rosiello, T. Joseph Wendt, Barnes & Thornburg LLP, Nicholas C. Pappas, Richelle M. Harris, Frost Brown Todd LLC, Indianapolis, IN, Lee A. Rosenthal, Dinsmore & Shohl, Lexington, KY, Ricardo L. Ortiz-Colon, Fiddler, Gonzalez & Rodriguez, San Juan, PR, Sarah C. McBride, Lewis, King, Krieg & Waldrop, P.C., Knoxville, TN, David J. Williams, Stoel Rives, Salt Lake City, UT, John A.K. Grunert, Campbell, Campbell, Edwards & Conroy, P.C., Boston, MA, John W. Knottnerus, Philip A. Rush, Martin Bischoff Templeton Langslet & Hoffman, Portland, OR, Regina M. Rodriguez, Faegre & Benson, LLP, Denver, CO, Robert L. Blank, Rumberger, Kirk & Caldwell, PA, Tampa, FL, Steven Robert Kramer, Eckert, Seamans, Cherin & Mellott LLC, White Plains, NY, Thomas P. Branigan, Bowman & Brooke, Troy, MI, for Defendants.

[754 F.Supp.2d 1154]

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS' MOTION TO DISMISS AND MOTION TO STRIKE

JAMES V. SELNA, District Judge.

Table of ContentsI.

Factual Allegations

1156

II.

Article III Standing

1160

A.

A Manifested SUA Defect Is Not Necessary for Standing

1161

B.

Pleading a Cognizable Loss under a “Benefit of the Bargain” Theory

1164

C.

Lead Plaintiffs Must Plead a Cognizable Loss under a “Benefit of the Bargain” Theory

1166

D.

The Warranties Do Not Preclude Standing

1167

E.

Conclusion for Article III Standing

1168

III.

Standing to Assert UCL, FAL, and CLRA Claims

1168

IV.

Rule 12(b)(6) and Rule 12(f) Standards

1169

A.

Motion to Dismiss Pursuant to Rule 12(b)(6)

1169

B.

Motion to Strike Pursuant to Rule 12(f)

1169

V.

Plaintiffs' CLRA, UCL, and FAL Claims (First, Second, and Third Causes of Action)

1170

A.

Heightened Pleading Standard Under Rule 9(b)

1170

1.

Generalized Statements

1171

2.

Specific Defect Allegations

1171

B.

CLRA Claims

1172

1.

Material Facts

1173

2.

Exclusive Knowledge and Active Concealment

1174

3.

Damages

1174

C.

UCL Claims

1175

D.

FAL Claims

1176

E.

Motion to Strike CLRA and UCL Claims

1177

VI.

Express and Implied Warranties (Fourth and Fifth Causes of Action)

1177

A.

Express Written Warranty

1177

1.

Terms

1177

2.

Limited Remedy of Repair or Adjustment

1178

3.

Requirement of Presentment for Repair Within the Warranty Period and Requirement of Notice Before Filing Suit

1178

a.

Contractual Requirement of Presentment for Repair Within the Warranty Period

1178

b.

Statutory Requirement of Notice Before Filing Suit

1180

4.

Design Defect as Beyond the Scope of “Materials andWorkmanship”

1180

5.

Unconscionability

1181

B.

Express Warranty Created by...

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