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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 have a 2008 Jeep Grand Cherokee they refuse to warranty a rear differential repair. I paid them to repair (a Jeep Dealership) and it needs to be repaired again. The dealership we purchased the vehicle was forced to close a couple of years after the purchased when FCA/Jeep/Chrysler trimmed the dealerships. FCA indicated the original dealer was to mail the notifications of inspection, but seeing how they were forced to close, it was own me to know what I didn’t know.
I own a 2009 Chrysler town and country and have had several repairs done that were covered by the extended lifetime warranty, even having some done last year. I called today to have a check engine light checked on and was told my warranty had been cancelled. I was told the same thing that I didn’t have the powertrain inspection which is not outlined clearly in my original paperwork. I have had ALL my service and inspections done at the dealership in which I purchased the vehicle, but was told that I HAD TO SPECIFICALLY ASK for the powertrain inspection. Unreal. Frustrated and angry at this point.
I bought a 2009 Dodge Ram 1500 and Lifetime Extended Warranty in August 2009. I took it in for service on December 30, 2020 and was told Chrysler had canceled both warranties. I called Chrysler and was told the warranties had been canceled because I missed the five year inspection in 2014. This despite the fact the alternator was replaced under warranty in February 2020.
I also had my warranty canceled last summer. I have an 09 grand Cherokee with an ESP contract
I started having issues with my 2008 Grand Cherokee and was informed by the Dealer that the lifetime warranty had lapsed because the 5 year Power train inspection had not been completed in a 6 month “window”. The vehicle was in to the dealer before the 6 month “window” but that inspection was not performed at that time, nor was I told I would need to bring in back in the window to maintain the warranty.
I’ve been in an ongoing battle with Chrysler in regards to the lifetime warranty I purchased for my 2009 Grand Cherokee. I was made aware that my warranty had been cancelled when needing a repair in May 2020. Despite having provided copies of the original warranty contract that states nothing in regards to the 5 and 10 year ‘powertrain inspection’, nor does the manual, Chrysler has continued to deny any wrongdoing. I refuse to give up this fight until Chrysler makes it right with their warranty promises.
I contacted an attorney regarding this very issue. I own a 2009 Chrysler Aspen. Please contact me at (601) 918-1164. I have the emails where Chrysler states it will honor my warranty in 2016. The dealerships records where I have kept my 5 year inspections. Emails from Fiat Chrysler refusing to honor it.
I purchased the lifetime power train warranty for my 2007 Pacifica. But when the known rusting problem in the K-frame ( the frame of the vehicle the engine is mounted to) made the vehicle unsafe to drive. When I asked FCA to repair they said the vehicle was out of warranty and my lifetime powertrain warranty did not cover this known issue.
Please add me
We just found out that the lifetime warranty on our ’07 Ram 1500 had been cancelled. In addition to the lifetime powertrain, we also purchased the lifetime bumper to bumper and all warranties have been cancelled. The dealership stated that I would have had to have my vehicle in the shop in October of 2017 and I did not bring it in until March 2018. Now it has an electrical issue in the dash which involves the airbag, seat belt and heated seats.