Ford Power Steering Defect Class Action Lawsuit Dismissed

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Last week, the proposed class action lawsuit accusing Ford Motor Company of manufacturing and then hiding defects in the power steering systems in its Focus and Fusion models was dismissed without prejudice by the presiding federal judge.

Lead plaintiffs alleged that Ford falsely advertised that the vehicles’ electronic power assisted steering enhanced vehicle safety despite knowing the system is “prone to sudden and premature failure,” causing drivers to lose their ability to steer the car, according to their class action lawsuit filed last summer.

Ford filed a motion to dismiss based on the economic loss doctrine and the plaintiffs filed a response in December. Ford argued that under the economic loss doctrine, plaintiffs who have sought damages based on breaches of warranties cannot do so under other violations of law. The plaintiffs replied that state law in Arizona and others allows for a number of exceptions to this doctrine.

The plaintiffs also argued that Ford Motor Company’s motion to dismiss holds them to a higher standard than is actually required under law: “Courts nearly universally recognize that … fraud by omission claims [need not] ‘specify the time, place, and specific content of an omission as precisely as would a … false representation claim,’” the plaintiffs wrote in their reply. The plaintiffs also contended that they adequately demonstrated that they were misled by Ford about the defect at the time of sale through the various dealerships.

The parties met at a case management conference on Feb. 12 of this year.

Last week, U.S. District Judge Lucy H. Koh issued a short order dismissing the Ford class action lawsuit. “Plaintiffs’ 108-page first amended complaint listing 51 causes of action, including 49 claims specific to the laws of six states and two nationwide claims based on the laws of 44 additional states, is unwieldy in scope and unduly burdensome,” she wrote in her order. Judge Koh told the plaintiffs they should narrow the causes of action in their complaint. The parties were ordered to meet before a case management conference scheduled later in February, as well as file their joint case management statement.

The judge also barred plaintiffs from adding new causes of action or parties without her permission. Judge Koh noted that the class action lawsuit’s deficiencies had been identified on the record, but did not explain her reasoning further. “Failure to meet the thirty-day deadline to file an amended complaint or failure to cure the deficiencies identified on the record will result in a dismissal with prejudice of Plaintiffs’ claims. Plaintiffs may not add new causes of action or parties without leave of the Court or stipulation of the parties,” concluded the judge in her order.

The plaintiffs are represented by class action attorneys from Baron & Budd PC, Grant & Eisenhofer PA and Spilman Thomas & Battle PLC.

The Ford Power Steering Defect Class Action Lawsuit is Philips, et al. v. Ford Motor Co., Case No. 14-cv-02989, in the U.S. District for the Northern District of California.

UPDATE: On Mar. 24, 2016, Ford Motor Co. asked a federal judge to dismiss an implied warranty claim in a proposed class action suit against the car manufacturer over faulty power steering claims in certain models of Focus and Fusion vehicles. Ford stated that the claim was already dropped previously and could not be added back as part of the current lawsuit.

UPDATE 2: On May 3, 2016, a federal judge denied Ford Motor Co.’s request to dismissimplied warranty claims from a consumer class action lawsuit alleging the power steering system in some Ford cars is prone to failure.UPDATE 3: On Sept. 19, 2016,Ford opposed class certificationby arguing the plaintiffs’ claims don’t raise issues common to the proposed Class.UPDATE 4: On Dec. 22, 2016, a California federal judge denied a motion for Class certification in a class action lawsuit filed by three Ford drivers who allege certain Ford Focus and Fusion vehicles are affected by a power steering defect.

UPDATE 5: On Jan. 10, 2017, Ford Motor Company asked the court to grant summary judgement in a class action lawsuit brought by California drivers who say the automaker concealed certain power steering defects in Fusion and Focus cars.