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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 bought a 2008 Chrysler 300 with a Lifetime Powertrain and Mopar warranty “bumper to bumper”. Took my car in due to some engine noise and was told by the dealer that I need a water pump and timing belt. I say I have a warranty and they said they don’t show it in the system. They give me a number to call. Long story short FCA says they suspended my warranty due to lack of inspections. However, I had a 5 year inspection done at a dealership and then had an inspection done within 60 days of the 10 year inspection requirement. The case Manager won’t speak to me but the phone representative said his decision was final and because it didn’t show in their system it doesn’t matter. Even if I have a copy of the inspection completed. Seems like FCA is doing this to everyone.
I purchased a 2007 Wrangler Sahara and also purchased the LIFETIME ADDED CARE PLUS warranty for thousands of dollars. I went for an oil change and was informed that I have a rear main seal leak. I dropped off the Wrangle at the dealer just under 4 weeks ago. Ive called and asked whats the status and was told that they would fix the rear main seal, I needed an oil pan and pump, plus a gas tank and fuel pump. I also mentioned that I’m having issues with starting the neutral safety switch. I called again and they still do not have any approvals from Fiat Chrysler Jeep and was told that its different now, they need pictures and have to submit for repairs authorization. Im still waiting. The dealership is OK but its wherever they have to submit and I didn’t care being told that now its different. .. Stay Tuned
Cont. bought my 2009 Jeep Liberty brand new in March 2009 with lifetime warranty, I have owned Dodge Daytona and 2 other Jeeps. This has been the worst experience ever. In May 2023, my transmission was slipping, It took Chrysler a month and a half to approve a rebuild of the part that was needed got my truck back in early July and a whole different part in the transmission broke causing the entire transmission to fail. Master tech advised Chrysler a new transmisson is warranted. They keep asking for random pictures and even asked for a pictures of the speedometer to make sure I wasn’t driving the truck! How rude and insulting after being a longtime customer since the early 90’s. As to date, the dealership has not gotten an approval and better yet THERE’S no transmission available for my vehicle! I have spent over $5,000 in rentals because I have no vehicle to go backforth to work, I even had missed days of work! I have called Chrysler to informed them and they put a claim and gave me a claim number. I call to check in the claim and transferred to voicemail without a voicemail that suppose to belong to a case manager. I need justice from FCA LLC. Somebody contact me . I want in on this lawsuit now.
Took my Jeep Liberty in to the dealership in May 2023 for transmission issues, they had to rebuild the transmission. Go it out in middle of July drove it for 1 week and it went back into shop. FCA dragging they feet to replace it. I have to rent cars to go to work from May until now. I had to file for Bankruptcy because if these clowns.
Original owner 2008 Dodge Charger with lifetime warranty engine and powertrain. PCM component of powertrain needed replaced but warranty not covered according to Chrysler-Dodge dealership. Car serviced and maintenance inspection always done at Chrysler dealership. Never informed by Chrysler or dealership that a powertrain inspection was required to maintain a lifetime warranty. The dealership said they did not keep record of inspection had one been done. It was free inspection and no charge to owner. Since it was part of the Chrysler corporation policy it should be their responsibility to notify dealerships and owners if it is required. Who wouldn’t do it for free to maintain warranty?
I have an 09 Dodge Ram, was denied the the LPTW for what they said was lack of inspection. Even after providing them the work order clearly showing my truck was inspected they maintained the denial. Dealership I bought it from went bankrupt, so thankfully I kept docs but hasnt helped me yet.
I bought the Lifetime Warranty for my 2007 van when I bought it.In 2022 was told it was cancelled in 2020 with no notification. I think it stinks that a company like that should be able to do that. Thank you
I am the original owner of a 2009 Jeep Wrangler purchased at Champion in Lansing. I was told Jeep voided my lifetime powertrain warranty due to not having it inspected every five years (it was inspected in 2014). Today I have a charge for approximately $5900 for a new transmission which should be covered under that warranty (it is currently at the dealer). I was unaware of such a stipulation and was not sent service reminders to keep this warranty going. I am frustrated and disappointed that Jeep Chrysler obviously does not stand behind their lifetime powertrain warranty.
I own a 2007 Dodge Magnum which I bought with cash, brand new in 2009 off the lot and I paid $2K for the lifetime warranty. They supposedly offered these warranties to entice us to buy their cars as too many were just sitting on the lot like mine. I always took good care and gave regular maintenance to my magnum. Anytime the car was in the shop they would do that ‘required check up’ without asking or telling me about it. I discovered this after the fact as they would list it on the work sheet, along with any repair, but in no way did I know it was required to maintain the policy until this BS came up. I have every piece of lit that came with the car and NOWHERE does it say that inspection is required in order to keep the policy active. When I took the car in for a BIG deal; the alternator needed replacing, that is when they told me that my policy was ‘pending cancellation’ and the insanity began. They refused to cover the $2K repair and I got the run around from everyone related to that company. I wrote letters, talked to over 20 people in this country and Canada and spent hours on the phone with some of the rudest people and often was hung up on. Way to go CROOKED DODGE CHRYSLER FIAT STELLwhatever your name is now! If you’re such a big rich company, why don’t you take care of us – the people you lied to and then dumped on? I still love my car and it looks like new at 16 years old with only 91K miles, but I DESPISE the cowards that run this rotten company!!!
I am the original owner of a 2008 Chrysler Aspen. I have the lifetime powertrain warranty like everyone else. I was having tranny trouble and took it to my local Chrysler dealer. Needed a transfer case acuator ($1436). Was told that my warranty had lapsed July 2023 (it’s now Sept 2023) (due to the fact that I didn’t have my 5 year inspection). I checked my records and in 2018, I was notified by letter (from Chrysler) and then a phone call from my local dealer telling me to get in there. Local advisor warned that Chrysler was purposefully trying to void all these warranties. The only thing Chrysler is willing to do is to “open a 14 day reinstatement period” to get my car back under coverage. But of course I had to pay to get if fixed : ( I’m now waiting on Chrysler to reinstate my lifetime PT warranty. Please add me to this list…what a crock o’sheet.