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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
Buy 2007 Jeep new and life time warranty, they canceled without notice or expl
I have keep all records.
We purchased 2009 Jeep Wrangler……still has 54,000 original miles…..we have followed all protocols to keep our lifetime transmission warranty in effect……I have sent many emails to Chrysler with a run around like robotic assistants…we even had a small seal repair in the transmission in June 2019……so if you go by the five year check up we are still good until June 2024….and a problem did come up with the transmission with a cost of $674.00…..Chrysler is now refusing to pay even though all protocols have been followed…..I am at the point to sending certified letters to all board members……I called Chrysler again on this date and they said our case is closed and should not be….I am suppose to get another call in 2-3 days….will see…I have spoken to in excess eight to nine representatives with the same robotic answers….there is no way they should be denying this coverage we just paid for of $674.00.
I learned today that Chrysler does not honor its Lifetime Warranty when I requested the approval of a rental vehicle as promised in my Lifetime warranty contract. I had to return my vehicle to Galena Chrysler in Fort Myers, Florida, after having it sit in the shop for over two (2) weeks. When I went to pick up my vehicle it was supposed to be fixed and the delay was supposedly caused because the dealer had to wait for a module. I paid my deductible, picked up my vehicle, and as soon as I started my car the red airbag light popped up on my dashboard as it had appeared when I first brought the vehicle in for service. Between the grief from the Galeana Chrysler, the dealer, and Chrysler, I am done with both of them and would not purchase another Chrysler, Dodge, Ram, Jeep, or Fiat product because the warranty is not honored.
2009 dodge ram 1500 I lost my lifetime power train warranty and the lifetime Max Care warranty that I paid thousands of dollars for because I didn’t do the inspections. I had my vehicle in for recall work during the time frame also. I was never notified of the inspections./
WOW, Now I can see why my dealer is telling me that nobody from the warranty departments are getting back to them. Jeep has been in service for 3 weeks with no approval from Chrysler on a LIFETIME WARRANTY claim. This is crazy, They need to be help accountable!
We own a 2009 Dodge van and bought it new,we took it in and they wouldn’t honor the warranty! We still have the van had the motor work on and it still needs replaced ! We need in this lawsuit!
I own a 2008 Jeep Wrangler with a lifetime warranty. I have all my services completed by a dealership. Recently I noticed a liquid on my garage floor. I made an appointment for a transmission leak. At the dealership I was told my timing chain cover was leaking. Which is normally a gasket. But I was told I needed a 5 year powertrain Inspection because my 2008 Jeep Wrangler was leaking the dealership was not able to do a 5 year power train inspection. I knew my timing chain cover was not leaking. So I drove my 2008 Jeep Wrangler to a different dealership. I scheduled a 5 year power train inspection. My 2008 Jeep Wrangler passed the 5 year powertrain inspection. I am currently talking with Chrysler warranty customer care to try to get my 2008 Jeep Wrangler lifetime warranty reinstated. Probably not going to happen because the other dealership has made it clear I need to order a timing chain cover not the gasket.
I purchased a 2008 dodge nitro ,new .6 years later when i needed repairs the dealer told me my warranty had been cancelled by chrysler.without any notice.same dealer for all service no notice.They also stole a warranty that i paid over 2,000 for called a wraparound warranty .this should not be legal.
Purchased a jeep and the lifetime warranty in 2008. Suddenly repairs were not covered ( honored) by warranty after 2019.
I have a 2009 Chrysler 300, I have transmission problems, since I have a lifetime warranty I took my vehicle back to dealer for repairs. I was informed that I had not my transmission checked every 5000 miles and there would no coverage, in fact I had to pay the dealer 150 dollars to have my transmission checked. I had not been told of the transmission requirements, I really have never seen the warranty or told I needed the transmission checked every 5000 miles. My dealer has serviced the car since it was new, I depended on my service manager to tell me what service I needed. I feel like Chrysler and my dealer have not informed me properly on the life time warranty on my drivetrain.