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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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277 thoughts onJudge Refuses to Toss Lifetime Warranty Class Action Lawsuit Against Fiat Chrysler
I have a 2008 Jeep Wrangler JK Unlimited. Have an issue with my ABS module and Dealer informed me that I no longer have my lifetime warranty. I got both of the powertrain inspections done, but they claim they have no record of the last one. Evidently the Dealer failed to report it! Please add me to the lawsuit.
I have a 2008 Grand Cherokee and am having the exact same problem with having my warranty denied for the same reasons. Please let me know what is needed to join the class action suit.
I have a 2008 Jeep Grand Cherokee. I have done all oil changes, maintenance intervals and repairs through the dealership that I bought my new Jeep from. When my alternator died. The repair should have been covered but I was informed that my warranty had been cancelled due to not have the ‘powertrain inspection’ done – which I was never notified of from either the dealer or the manufacturer. I actually have all the visual inspection sheets for my vehicle – 33 in total. None of which ever indicate an issue.
Does anyone know who to contact to get added to this Class Action Suit? I have the same issue. $10k in repair estimates that they are now refusing to pay. I have a 2007 Grand Cherokee. They are refusing because a 5 year inspection was supposedly not done, but nothing in any warranty or purchase documents say anything about that requirement.
I called the warranty company and they told me to write a letter explaining the situation- so I did -I am now waiting on a response to see if my warranty can be reinstated?
I called them several times a day and I had the paper work to back up my inspections you will have to call and call and call
We too encountered this problem today. We’ve kept up with maintenance on this vehicle since 2007. Every single oil change has taken place at Dodge-never once were we told that we needed to bring it in once every five years for an inspection. We’ve spent A lot of money with Dodge and Jeep-The main thing that made us hang onto this truck was because of the lifetime warranty. Our 15-year-old showed interest in driving the 07 as her first vehicle-so we took it to the dealership to make sure everything was good… To make sure there weren’t any active recalls-And we were told that our extended warranty was pending cancellation. By reading all of the comments below I can see that a lot more people are experiencing the same difficulties as those that filed the class action-if we are unable to join this class action we should start our own.
I’m all for that
I would like to be part of this law suit. I have contacted corporate and still waiting for my notice of warranty being null. I had jeeps for many years and dont think ill buy anothet one.
I purchased a new 2008 Dodge Dakota at the Dodge, Chrysler dealership with a lifetime warranty. I took my vehicle in for all oil changes and inspections. I was told my vehicle limited lifetime warranty was voided due to me missing 1 inspection that they claim was in my owners handbook at time of purchase.
Soon after 100,000 miles my transmission went out which i had to pay labor and parts out of pocket. Which should have been covered with my lifetime warranty.
I would like to join the class A lawsuit
Just found out my warranty is void, never ever was told about a 5 year inspection that was necessary, now I’m stuck with huge bill! After 6 different Jeep’s they just lost a customer!! Great way to screw your customer’s after we bail you out. Want to be part of lawsuit, need information please , thanks.
How do I join the lawsuit. I had the first inspection recorded. The second the dealer never recorded yet I have the paperwork and invoices for repairs that should have been covered
I purchased a 2008 Chrysler Aspen with the Maxcare maintenance and Lifetime powertrain warranty. I returned the vehicle to the dealer for all scheduled maintenance and any repairs that were needed. I was never offered or made aware of any required “Powertrain Inspection” even though my records indicate that the rear pinion seal was leaking and replaced on one occasion and the differential seal was replaced – and to claim that the powertrain was never inspected! Every service summary/invoice states “Customer Has Requested a Multi-Point Inspection be Performed”.
Please forward info to be included.
Found out last year that the Lifetime Warranty on my 2008 Jeep Liberty purchased October 2007 had expired when the vehicle needed repair that would have been covered under warranty. When the water pump failed in October 2017, it was covered under warranty. No mentioned was made that it needed a “special” inspection. About 18 months later a repair was needed to what would have been covered under the warranty and was informed because the vehicule hadn’t had the “special warranty inspection “, the vehicle was no longer covered. All oill changes had been done at dealership in accordance to the maintenance schedule and no mention of the required 10 year special inspection was made. As having developed a life threatening chronic illness about the time of the 10 year anniversary and no mention of the “soecial inspection ” beyond when the vehicle was inspected each time the oil was changed ended up paying over $7,000 out of pocket for engine repairs / replacement. This has been especially hard as became disabled and the repair cost was a major financial setback.