Schmidt v. Ford Motor Co.

Decision Date01 August 2016
Docket Number CIVIL ACTION NO. 13-7254,CIVIL ACTION NO. 12-7222
Citation198 F.Supp.3d 511
Parties Jason SCHMIDT, et al., Plaintiffs, v. FORD MOTOR COMPANY, Defendant. Deborah Gill, et al., Plaintiffs, v. Ford Motor Company, Defendant.
CourtU.S. District Court — Eastern District of Pennsylvania

Donald H. Slavik, Robinson Calcaonie Robinson Shapiro Davis, Inc., Steamboat Springs, CO, Julie Parker Thompson, Larry E. Coben, Sol H. Weiss, Anapol Schwartz Weiss Cohan Feldman & Smalley PC, Philadelphia, PA, Eric B. Snyder, Bailey & Glasser, Charleston, WV, for Plaintiffs.

J. Tracy Walker, IV, Perry W. Miles, IV, Richard Charles Beaulieu, McGuire Woods LLP, Richmond, VA, Janet L. Conigliaro, Dykema Gossett PLLC, Ann Arbor, MI, Emily J. Rogers, William J. Conroy, Campbell Campbell Edwards & Conroy PC, Berwyn, PA, Tiffany M. Alexander, Sedgwick LLP, Malvern, PA, for Defendant.

MEMORANDUM

EDUARDO C. ROBRENO, District Judge

Table of Contents

I. INTRODUCTION... 515

II. FACTUAL BACKGROUND AND PROCEDURAL HISTORY... 515

D. Consolidation... 517

III. LEGAL STANDARD... 517

IV. APPLICABLE LAW... 518

V. DISCUSSION... 518

A. Schmidt and the Gills' breach of express warranty claim... 518
1. Breach of Express Warranty... 518
a. The warranties' terms are clear and... 519
b. Any express warranty applicable to Plaintiffs' claims expired by the time Plaintiffs' claims arose... 522
2. Reliance on the Warranties... 524
C. Unjust Enrichment... 527

VI. CONCLUSION... 530

I. INTRODUCTION

Before the Court are two consolidated actions arising from Plaintiffs Jason Schmidt, Stephen Gooder, and Samuel and Deborah Gill's product liability claims against Defendant Ford Motor Company. Plaintiffs are the owners of 2005 Ford Expeditions with 5.4L V8 engines. According to the Complaint, these vehicles and their engines contain a defect in the throttle bodies, which causes a loss of power during acceleration. Plaintiffs now seek monetary and injunctive relief on behalf of a class of similarly situated consumers.

At this juncture, the following claims remain1 in the consolidated actions: (1) the Schmidt's claims of breach of express and implied warranties; (2) the Gills' claims for breach of express and implied warranties; and (3) Gooder's claim for unjust enrichment. Ford now moves for summary judgment as to all remaining claims. For the reasons that follow, the Court will grant the motion and enter judgment in favor of Ford as to all claims.

II. FACTUAL BACKGROUND2 AND PROCEDURAL HISTORY

A. The Electronic Throttle Body

Between 2004 and 2008, Defendant manufactured, assembled, and marketed the Ford Expedition, which contained an engine equipped with a common Electronic Throttle Control System ("ETC") and Throttle Position Sensor ("TPS"). van Schoor Rep. 13, ECF No. 74-243 (discussing ETC system installed in the 2004-2008 Ford 5.4L V8 engine); Kuhn Rep. 1, 3-4, ECF No. 74-16; Kitchen Rep. 3, ECF No. 74-17. The ETC consists of the Accelerator Pedal Position Sensors, the Powertrain Control Module, and the Electronic Throttle Body ("ETB" or "throttle body"). Kitchen Rep. 10-11, ECF No. 74-17; Salcone Rep. 1, ECF No. 74-21. The ETC enhances engine and vehicle performance by using an electronic system, instead of a mechanical connection like a cable, to control the delivery of air and fuel to the engine when the driver demands engine power by depressing the accelerator pedal. Kitchen Rep. 11, ECF No. 74-17; van Schoor Suppl. Rep. 5, ECF No. 74-25.

B. Schmidt v. Ford Motor Company

The Schmidt action was initiated on December 27, 2012. ECF No. 1. Following the Court's decision to grant in part and deny in part Ford's motion to dismiss,4 only Jason Schmidt's claims for breach of express and implied warranties, and Stephen Gooder's claim for unjust enrichment now remain.5 ECF No. 35.

Jason Schmidt is a New Jersey resident who purchased a used 2005 Ford Explorer in 2012 from North Penn Imports, Inc., in Pennsylvania. ECF No. 74-2. The vehicle had been initially delivered to the dealership by Ford on April 13, 2005. ECF No. 74-5. It had one prior owner. Schmidt Dep. 28:1-7, ECF No. 74-3. The vehicle's mileage was 61,020 at the time of Schmidt's purchase. ECF No. 74-2. He did not review any warranty materials from Ford before the purchase. Schmidt Dep. 37:5-7, ECF No. 74-3.

On or about September 24, 2012, Schmidt lost power to his vehicle while driving. Id. 42:17-24. Schmidt took his vehicle to the closest Ford dealership, Holman Ford, for repair. Id. 61:24-62:9. Holman Ford advised Schmidt that the throttle body assembly required replacement, which would not be covered under Ford's warranties. Id. 57:15-22; 64:23-65:12. Because it was not covered, Schmidt paid $683.33 out of pocket for the repair. ECF No. 74-4.

Stephen Gooder is an Illinois resident who purchased a 2005 Ford Expedition in October 2011. ECF No. 74-11; Gooder Dep. 15:20-16:4, Nov. 21, 2013, ECF No. 81-5. At the time of purchase, the vehicle's mileage was either 110,000 or 122,000. ECF No. 74-11; Gooder Dep. 15:9-12, Nov. 21, 2013, ECF No. 81-5. The dealer provided Gooder with a thirty-day warranty, but Gooder neither recalled receiving nor expected to be provided with a warranty from Ford. Gooder Dep. 21:8-24, Nov. 21, 2013, ECF No. 81-5.

In October 2012, Gooder experienced a loss of power to his vehicle while driving. Id. 27:10-32:8. He brought the vehicle to Bryden Ford for repair but the diagnostic testing was inconclusive. Id. 27:1-9. Gooder paid $105.35 to Bryden Ford for the testing. Id. 33:16-34:1. Thereafter, Gooder experienced a loss of power three or four more times. Id. 34:22-35:12. Then, in February 2013, Bryden Ford replaced the throttle body assembly on Gooder's vehicle. Id. 39:15-17. Gooder paid Bryden Ford $463.73 for the work. Id. 39:18-22. Gooder has never given any money to Ford Motor Company in relation to his purchase or ownership of the 2005 Expedition. Id. 34:6-12.

C. Gill v. Ford Motor Company

The Gill action was initiated on December 12, 2013. ECF No. 1. Following the Court's decision to grant in part and deny in part Ford's motion to dismiss, only the Gills' claims for breach of express and implied warranty remain. ECF No. 35.

Samuel and Deborah Gill purchased their 2005 Ford Expedition on or about October 21, 2005. ECF No. 74-6. The vehicle had been initially delivered to the dealership by Ford on January 25, 2005. ECF No. 74-6. At the time of purchase, the vehicle's mileage was approximately 10,700. S. Gill Dep. 27:6-9, ECF No. 74-8. Neither Mr. Gill nor Mrs. Gill reviewed any Ford warranty materials before purchasing the vehicle and no warranties factored into their decision to make the purchase. S. Gill Dep. 25:11-13, 26:24-27:1, Dec. 10, 2014, ECF No. 74-8; D. Gill Dep. 40:15-23, ECF No. 74-7.

The Gills first experienced a loss of power while driving in late 2011 or early 2012. S. Gill Dep. 33:3-23, ECF No. 74-8; D. Gill Dep. 71:20-80:19, ECF No. 74-7. The Gills did not take the vehicle for repair until they experienced a second loss of power in February 2012. D. Gill Dep. 81:25-83:23, ECF No. 74-7; S. Gill Dep. 34:18-35:4, ECF No. 74-8; ECF No. 74-9. The Gills' vehicle underwent various repairs at 98 Tire and Service Center, Inc., including replacement of the throttle body assembly, which cost the Gills $520.98 in total. ECF No. 74-9.

Then, in April 2013, the Gills experienced a third loss of power. S. Gill Dep. 43:5-25, ECF No. 74-8; D. Gill Dep. 87:17-93:6, ECF No. 74-7. The same service center, 98 Tire and Service Center, Inc., told the Gills that the throttle body assembly would need to be replaced for a second time, so the Gills contacted Courtesy Ford in Hattiesburg, Mississippi. S. Gill Dep. 47:11-48:13, ECF No. 74-8; D. Gill Dep. 93:2-94:12, ECF No. 74-8; ECF No. 74-10. Courtesy Ford performed various repairs on the Gills' vehicle, but did not replace the throttle body assembly. S. Gill Dep. 48:23-24, ECF No. 74-8; ECF No. 74-10.

D. Consolidation

On July 15, 2014, this Court consolidated the Schmidt and Gill matters for all pretrial purposes and ordered that all future filings in the two actions be made on the Schmidt docket. ECF No. 29. Upon consideration of Ford's motion to dismiss, the Court dismissed several of Plaintiffs' claims. The remaining claims are as follows: (1) Schmidt's breach of express warranty claim (Schmidt Count I); (2) Schmidt's breach of implied warranty claim (Schmidt Count III); (3) Gooder's claim for unjust enrichment (Schmidt Count XIV); (4) the Gills' breach of express warranty claim (Gill Count I); and (5) the Gills' breach of implied warranty claim (Gill Count II).

Since consolidation, the parties have engaged in substantial discovery, including written discovery, numerous depositions, technical inspections, and the exchange of expert reports. Ford filed its motion for summary judgment against all Plaintiffs, ECF No. 74, to which Plaintiffs responded, ECF No. 81. The motion is now ripe for disposition.

III. LEGAL STANDARD

Summary judgment is appropriate if there is no genuine dispute as to any material fact and the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a). "A motion for summary judgment will not be defeated by ‘the mere existence’ of some disputed facts, but will be denied when there is a genuine issue of material fact." Am. Eagle Outfitters v. Lyle & Scott Ltd., 584 F.3d 575, 581 (3d Cir.2009) (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247–48, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986) ). A fact is "material" if proof of its existence or nonexistence might affect the outcome of the litigation, and a dispute is "genuine" if "the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Anderson, 477 U.S. at 248, 106 S.Ct. 2505.

The Court will view the facts in the light most favorable to the nonmoving party.

"After making all reasonable inferences in the nonmoving party's...

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