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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
We own a 2008 Dodge Ram 1500 we fought with dodge over our warranty being dropped because a inspection had not been done. We had the inspection paper in our had but dealership had not put it in the computer. I sent the same paper work to them about 12 times I called many times a day till I finally reached a person that put our warranty back on long store short out truck went to the shop with over 200k miles and a upper end knock before the got the parts (6months) the mechanic went out and started the truck threw a rod they replaced the motor with a rebuild it never started right it never sounded right now with 6000 miles motor is locked up and they want 4 oil change receipts and have denied us
Jadiecook@yahoo.com We were denied coverage for our 2007 Dodge Ram. Interested in this law suit!
Jadie & Mark Cook
warranty work on my 2009 1500 Dodge pickup refused .
Last week my 2007 Jeep Wrangler was towed to the dealership where I purchased it new in Aug.2007. It was towed because it would not drive forward. Today the dealership informed me that the transmission had an internal parts failure and the transmission needs to be replaced. They stated that FCA has voided my lifetime warranty because I failed to have the vehicle inspected in Aug.2017. They are now wanting to charge me $4535 to replace transmission and transmission oil cooler. In my opinion, there is NO WAY that an inspection 43 months and approximately 47,000 miles ago could have identified or otherwise prevented the current transmission component failure. They sold me a Lifetime Powertrain Warranty but what they are describing now is a warranty that is renewable or extendable upon certified inspection every five years. I would like to be included in the class action lawsuit.
I too was just informed of the bogust 10 year inspection requirement even though the vehicle was at the dealership every few months for an oil change. Funny that the dealerships were in cahoots not to raise a red flag when the vehicle needed that inspection. We were informed about every other scheduled item that it needed. I have a case number with Chrysler and will definitely be mentioning the class action law suit. If there is a way to join in Missouri let me in. rodneymaur@gmail.com
I purchased a new 2008 Ram 2500. I also purchased the MaxCare Lifetime extended warranty. When Chrysler voided my power train warranty for missing a free inspection, they notified Service Contracts and had my extended warranty (which I paid for) voided as well. Chrysler doesn’t offer free inspections for the benefit of the customer but simply to give them a reason to cancel. I spoke with Chrysler Customer Relations and was told they sent a letter at the first inspection date but not after that. That is a set up! Please add me to lawsuit.
2007 RAM 1500 SLT QUAD CAB 02/26/2021
63000 mil on it
I did the 1st 5 year inspection passed no problems
I Didn’t realise to be inspected every 5 years
Chrysler dealership cancel my lifetime power train warranty!
The check engine light came on I took it to the dealer and that’s
how I found out I do not have a LIFETIME POWER TRAIN WARRANTY!
Chrysler dealerships LIFETIME WARRANTY IS A LIE!
They just find loopholes to get out of it.
We too were told today that our lifetime power train warranty on our 2009 Dodge Ram 1500 was cancelled when we need a repair of a known exhaust manifold defect and want $1,200 + to fix this dangeous sitation. We received no notification of this cancellation & even though we always took our truck in for oil changes and/or repairs, one of which was an exhause manifold repair, they said our truck is no longer covered as it needed to be inspected every 5 years. We are retired now & on Social Security (husband is a 100% disabled Veteran) & one of the reasons we bought the vehicle was because of the lifetime warranty. No one ever told us that we needed to take it in in 5 year increments after that. We would like to be added to this case.
I too am having problems with this exact same issue!
I have been going to the same Metroplex Jeep Dealership for over 15 years. Never once did they say anything about the Powertrain Inspection sheet or give me a copy of that Inspection. Chrysler is asking me for proof the Powertrain inspection was done now before June of 2019? This dealership has Changed Names to Uptown Jeep and switched from Reynolds and Reynolds accounting system to an ADP accounting system and now what i am being told is they cannot pull up or print any of their old Service History records from customers because the dealership chose not to pay the extra money for that Service?.
I too was told that my lifetime power train warranty was cancelled when I needed a $1000 + car repair done. I received no notification of this & even though I always took my car in for oil changes etc. they said my car needed to be inspected every 5 years. I am retired now & on Social Security & one of the reasons I bought my 2007 Dodge Caliper was because of the lifetime warranty. I took it in for the 5 year inspection because I got a postcard in the mail but no one has a record of it. No one ever told me that I needed to take it in in 5 year increments after that. I would like to be added to this case.