Judge Trims All But One Claim in BMW Electrical Class Action Lawsuit

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A New York federal judge dismissed all but one claim in a class action lawsuit alleging defects in certain BMW automobiles caused leaky trunks and ultimately electrical damage.

The class action lawsuit was initiated by a New York resident who alleged that BMW intentionally concealed a serious design defect that can cause certain BMW model vehicles to shut-down completely with very little warning.

In the complaint, plaintiff George Catalano claimed that the auto maker had full knowledge that the location of the electrical components could cause “catastrophic failure and legitimately compromise driver and passenger safety,” but actively concealed that fact from consumers.

The plaintiff included claims for breach of contract and warranty as well as fraudulent concealment in his class action. U.S. District Court Judge Katherine B. Forrest considered the class action’s claims and dismissed all but one of them according to an order issued on March 2. According to the order, most of the class action’s claims were barred by a deadline in the applicable statute of limitations and because the plaintiff failed to establish evidence of the claims.

“Because Catalano alleges that the same defects were present in numerous vehicle models produced by multiple BMW entities over several years, and there is nothing specific in the [first amended complaint] to suggest that the defects complained of were caused by a flaw in BMW’s global manufacturing process, Catalano fail[s] to set forth sufficient facts to assert a manufacturing defect that could support his express warranty claim,” wrote the judge in her order.

Judge Forrest allowed the class action’s claim that BMW engaged in deceptive business practices, provided the plaintiff amend his complaint to further support the claim within two weeks.

“[The plaintiff] has not expressly sought leave to amend the [first amended complaint],” pointed out the judge in her order, “but the Court will allow Catalano an opportunity to amend solely with respect to his fraudulent concealment claim, should he desire to do so.”

“The Court will allow [the plaintiff] this opportunity because the Court considers this claim to be a relatively close call,” explained the judge. “In short, as to this claim, it is possible that leave to amend would not be futile.” However, “[t]he Court does not, at this time, express any view as to whether [the plaintiff] will be able to successfully replead a fraudulent concealment claim that passes muster.”

Catalano is represented by Joseph R. Santoli, of The Law Offices of Joseph R. Santoli; William A. Kershaw, Stuart C. Talley and Ian J. Barlow of Kershaw, Cutter & Ratinoff LLP; Edward A. Wallace and Amy E. Keller of Wexler Wallace LLP; Stephen M. Harris of The Law Offices of Stephen M. Harris, P.C.; and Robert L. Starr of The Law Office of Robert L. Starr.

The BMW Electrical Components Class Action Lawsuit is George Catalano v. BMW of North America LLC, Case No. 1:15-cv-04889, in the U.S. District Court for the Southern District of New York.

UPDATE: On June 16, 2016, the BMW class action lawsuit will continue after a federal judge found that the car manufacturer’s motion to dismiss raised arguments already addressed in a prior motion.

UPDATE 2: On Feb. 2, 2017, BMW agreed to settle this class action lawsuit. Under the terms of the proposed settlement, Class Members can take their vehicles to an authorized BMW center to receive an inspection for water damage and electrical damage and, if water damage is discovered, the BMW center will repair and replace the affected modules at no cost.

UPDATE 3: The BMW Electronic Component Water Damage Class Action Settlement is now open! Click here to file a claim.