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A federal judge refused this week to throw out a class action lawsuit accusing the Fiat and Chrysler motor company of breaching a lifetime warranty it offered to consumers, but did grant some concessions to the automaker.
U.S. District Judge Stephen J. Murphy, III said the bulk of the class action against FCA US LLC can proceed because there are facts in dispute that he cannot decide on at this stage and the company’s customers have a right to pursue their claims. The judge did, however, grant a request by the manufacturer to dismiss the plaintiffs’ claims for “injunctive relief” in light of a decision previously made as part of the company’s Chapter 11 bankruptcy reorganization.
The bankruptcy court decided that damages for any breach of warranty claim stemming from FCA’s “Lifetime Warranty Provision” would be restricted to the cost of repair and labor for fixing an affected vehicle.
Named plaintiff, Paul Grundy, and his legal team filed the class action lawsuit against the Fiat Chrysler auto group in May in the U.S. District Court for the Eastern District of Michigan. Grundy sued on his own behalf and that of at least 27 other owners of specific 2006-2009 Chryslers, Dodges, and Jeeps for which the company reportedly failed to uphold its limited lifetime warranty.
According to the class action lawsuit’s complaint, Grundy and others were told when they took their vehicles in for repairs that the work would not be covered under warranty because they had not fulfilled the requirements of the warranty. To keep the warranty active, owners are supposed to bring their vehicles to an authorized dealer for a prescribed inspection of the powertrain every five years.
The named plaintiffs, who come from 22 states, claim they were not given “reasonable notice” of the mandatory inspection clause in the lifetime warranty agreement and therefore, FCA’s practice of revoking the warranty for failure to uphold the terms is unfair and unlawful. The terms of the lifetime warranty were not included in the warranty manuals the owners were provided with when they purchased their vehicles, the class action lawsuit alleges.
Earlier this year, lawyers for FCA filed a motion with the court asking it to dismiss the case entirely on the grounds the inspection clause of the lifetime warranty was known to the vehicle owners. The owners were given documents explaining warranty in detail at the time of purchase as part of a standard sales procedure, the company argued. Copies of the warranty booklets were submitted to the court as evidence.
In his ruling this week, Judge Murphy said the booklets themselves could not prove the owners were aware of the existence of the inspection clause – the question of whether the owners were, in fact, given adequate notice of the conditions of the lifetime warranty are the factual dispute at the heart of the case.
Under the law, the judge is not allowed to make a determination of fact at this stage of a case, Judge Murphy wrote in his ruling. Instead, he must “accept all well pleaded factual allegations as true” and allow the plaintiffs to proceed with fact-finding.
Do you own a 2006-2009 Chrysler, Dodge or Jeep with a limited lifetime warranty? Have you been denied coverage of a needed repair because you did not meet the warranty’s requirements to have the vehicle inspected every five years? Tell us about it in the comment section below.
Lead plaintiff Grundy and the proposed Class Members are represented by E. Powell Miller, Sharon Almonrode, Emily E. Hughes, Dennis A. Lienhardt, and William Kalas of The Miller Law Firm PC and Richard D. McCune, David C. Wright, Steven A. Haskins, and Mark I. Richards of McCune Wright Arevalo LLP.
The Lifetime Warranty Class Action Lawsuit is Paul Grundy, et al. v. FCA US LLC, Case No. 2:20-cv-11231, in the U.S. District Court for the Eastern District of Michigan, Southern Division.
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276 thoughts onJudge Refuses to Toss Lifetime Warranty Class Action Lawsuit Against Fiat Chrysler
I thought I had a lifetime warranty from Chrysler on my 2007 . Chrysler 300. I have been using the same dealer Addy harper Dodge fiat since moving to Myrtle Beach, South Carolina. They werewell sold to The Team that sells Dodge Fiat and other brands at 10 different dealerships. As soon as they were sold I started asking about my Service writer George about my warranty inspection and was informed that it was coming up soon but they were having trouble with the new computer and phone system. So I waited for my next oil change and took it in George had left or so I was told and a new service writer was there. At this point things got crazy. My new service writer said my warranty expired and gave me a # to call at which time I did and learned that Team was no longer a qualified dealer and they would connect me with a dealer to have an inspection on Thursday March 14. I show up on Wed March 13 to drop the car off at Myrtle Beach Chrysler and Mr. Jim loveland who made the original appointment said you made a mistake it was for the following thrusday never even looking at the appointment book as if he was expecting me and was told to change the appointment. No I am not paranoid. On March 19 I was denied coverage because of not being there in June of 2023. I was there in May of 2023 and November of 2023.
So I called my dealership who is was Addy-Harper and is now the team and had them give me a complete print out of my service activity which I now have in my possession.
These include the 2- 5 year inspections tat hey could not find any reference to I need help
I purchased a LIFETIME warranty through Jeep for my 2007 Jeep Commander – All was good until just recently when a new fuel tank was needed and it was approved through the warranty , yet the part is no longer being made. Dealer stated there is nothing they can do on their end , MOPAR offers no help and trying to get in contact with the head of JEEP now at Stellantis has been an impossible feat as the customer service reps say they are not allowed to give out the contact information – How can they discontinue making parts for a vehicle that has a LIFETIME warranty – Not a happy customer here, Something needs to be done !!