Class Action Says Mercedes-Benz Didn’t Disclose Used Vehicle Defects

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A new class action lawsuit accusing Daimler AG and Mercedes Benz Cars of misleading consumers about the collision histories of their pre-owned vehicles was filed in New Jersey State Court on Dec. 13.

Plaintiff James Dey of Maryland filed the class action lawsuit, alleging that the two companies concealed and misrepresented the true condition of a used car he purchased. Specifically, he claims that the car he purchased was previously involved in a serious rear-end collision, which compromised the vehicle’s rear suspension. Dey claims that this knowledge of the vehicle’s collision history would have materially affected his decision to purchase the car.

Dey accuses Daimler and Mercedes of violating New York State Lemon Law, “specifically the willful concealment by the defendants of the vehicle collision history … and for concealing vehicle history and the essential terms and conditions of the transaction in warranty in writing ….” Dey also accuses the companies of violating the New Jersey Unlawful Advertising Practices regulations by failing to disclose that the car he purchased was previously damaged and had been subjected to “substantial repair or body work” that the seller should have been aware of.

The class action lawsuit also brings claims for breach of express and implied warranties of merchantability, “related to the defendants’ misrepresentations and assurances that the vehicle underlying the complaint was pre-inspected, safe for its intended use and that it warranted inclusion within the so called ‘Mercedes Benz Certified Pre-Owned (MBCPO) Program.’” Dey is also bringing claims for unjust enrichment and fraud.

According to the class action lawsuit, Dey sought to purchase “a reliable, quality, used luxury vehicle for cash value from a reputable manufacturer and dealership” in December 2007. He visited the Daimler Benz website and read up on the MBCPO program, which promises that the vehicles are thoroughly inspected and tested before they are sold. Further, Daimler indicates that a thorough check of the title and service history, including a CARFAX vehicle history report, is completed before each sale.

Based on these representations, Dey claims that he purchased a black model year 1999 C-230 advertised by Mercedes Benz of Manhattan, a MBCPO-approved dealership. On Dec. 15, 2007, Dey traveled to the dealership to view the vehicle and asked the sales representative about any defects. When no defects were disclosed, he purchased the vehicle and drove back to Maryland the same day.

During his drive to Maryland, Dey observed that the vehicle shook at highway speeds. Several months later, he took his vehicle to a mechanic to address the issue. According to the class action lawsuit, the mechanic informed him that the wheels were misaligned. He paid for the alignment out-of-pocket. He continued to have problems with the vehicle and eventually called the Mercedes customer hotline to file a formal complaint.

After being involved in a serious car accident, Dey conducted his own investigation into the vehicle history. He paid for a CARFAX report, which showed that the vehicle was involved in a rear-end collision in July 2006. He contacted the dealership, who passed his information on to Mercedes. According to the class action lawsuit, Dey’s attempts to resolve the matter were met with “various degrees of ridicule, incredulity and insults, and also with feigned ignorance.”

Dey is seeking restitution, disgorgement of profits, along with interest, attorneys’ fees, costs of suit, exemplary or punitive damages, statutory damages, and other relief that is deemed appropriate by the court.

Dey is represented by Andrew K. de Heer of Deheer Bureau Advocato LLC.

The Daimler/Mercedes Certified Pre-Owned Vehicle Class Action Lawsuit is Dey v. Daimler AG, et al., Case No. L-9735-13, in the Superior Court of the State of New Jersey, County of Bergen.