Class Members Get Claim Back in BMW Water Damage Class Action

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In a class action lawsuit alleging BMW of North America LLC knowingly concealed design defects, a federal judge ordered that the plaintiffs could pursue a previously dismissed claim under the Song-Beverly Act.

Lead plaintiffs alleged in their initial class action lawsuit that certain BMW vehicles contain a design defect that exposes vital electronic components located in the lower trunk to potential water damage that is regularly caused by normal car usage. The plaintiffs further claimed that the damage to these electronic components can lead to the BMW car losing power while in drive.

Early last year, U.S. District Judge Maxine M. Chesney trimmed the plaintiffs’ breach of implied warranty claims and found that the implied BMW car warranty in question only lasted three months after the date of purchase. However, the Ninth Circuit ruled to the contrary in a separate case about Ford Focus models that allegedly caused premature tire ware. The Ninth Circuit stated that purchasers are not required to discover and report latent defects within three months under the Song-Beverly Act.

Also in the order, Judge Chesney refuted an argument made by BMW that because they made no express warranties about the automobiles in question, no implied warranties should apply to the class action either. “Such argument has no merit,” ruled the judge. “Plaintiffs have alleged they received express warranties in connection with the subject sales and, indeed, defendant previously asked the court to take judicial notice of those express warranties.”

In June 2014, Judge Chesney trimmed other California consumer protection claims, finding that the plaintiffs had not sufficiently established that the automaker was aware of their vehicles’ design defect when the plaintiffs purchased their BMW cars. In response, the class action plaintiffs submitted documents from BMW showing that their claims were supported and the judge agreed.

BMW argued that the class action should be dismissed because the allegedly defective parts are not “unreasonable safety hazards.” BMW made this argument in spite of the plaintiffs’ claims that the electrical damage can cause the automobiles’ power to fail in traffic.

The plaintiffs claim that BMW’s X5, X3 and 5 model vehicles designed over the last 10 years are affected by the defect. According to the complaint, the electrical components in the trunk of these vehicles are prone to water damage because they are exposed.

The plaintiffs are represented by William A. Kershaw, Stuart C. Talley and Ian J. Barlow of Kershaw Cutter & Ratinoff LLP, by Edward A. Wallace and Amy E. Keller of Wexler Wallace LLP, by Joseph R. Santoli of The Law Offices of Joseph R. Santoli and by Joseph M. Dunn of Wigington Rumley Dunn LLP.

The BMW Water Damage Class Action Lawsuit is Monita Sharma, et al. v. BMW of North America LLC, Case No. 3:13-cv-02274, in the U.S. District Court for the Northern District of California.

UPDATE: On May 6, 2016, the plaintiffs in this lawsuit are fighting BMW’s simultaneous efforts to dismiss their claims and to win judgement against them.

UPDATE 2: The BMW Electronic Component Water Damage Class Action Settlement is now open! Click here to file a claim.