Daimler Dismissed from Mercedes Rim Defect Class Action Lawsuit
By Anne Bucer
A New Jersey federal judge has dismissed claims against Daimler AG in a putative class action lawsuit accusing the company and its subsidiary Mercedes-Benz USA LLC of failing to repair defective rims under warranty, finding that the plaintiffs did not show the warranties were set by Daimler.
The class action lawsuit was initially filed in 2009, alleging that the Mercedes light alloy rims were not strong enough to endure normal driving conditions. The plaintiffs also argued that Mercedes refused to cover their repair costs under the vehicles’ warranty. In 2012, Daimler was added as a defendant in the class action lawsuit.
Daimler moved to dismiss the Mercedes rims class action lawsuit, arguing that because the warranty was issued by Mercedes, Daimler was not liable for the repair costs. U.S. District Judge Dennis M. Cavanaugh agreed with Daimler and dismissed the claims against the company. “Beyond the conclusory claim that Daimler ‘sets the warranty terms,’ Plaintiffs have failed to provide facts to support the allegation that Daimler warrants the vehicles,” the judge said.
The plaintiffs decided to add Daimler as a defendant in the class action lawsuit because, as the parent company of Mercedes, it was allegedly responsible for setting the terms of the warranty. Further, the plaintiffs argued that Daimler was essentially an “alter ego” for Mercedes. Judge Cavanaugh disagreed with this assertion finding that, while Daimler had some control of Mercedes, it does not “dominate (Mercedes) into non-existence.”
Mercedes also sought to dismiss the class action lawsuit, claiming the plaintiffs had insufficient evidence to prove their wheels were damaged by the alleged rim defects. Further, Mercedes argued that the plaintiffs could not show that the value of their vehicles was affected by the alleged defect. Judge Cavanaugh declined to rule on these claims, finding they were actually challenges to the merits of the class action lawsuit. He found the plaintiffs adequately pled causation and that they suffered economic loss by paying for replacement wheels.
The plaintiffs filed the Mercedes rims class action lawsuit on behalf of all consumers who purchased or leased a Mercedes-Benz vehicle with 17-inch, 18-inch or 19-inch AMG or non-AMG wheels from 2006 to present. They allege that Mercedes sold the rims without disclosing they were defective and subject to bend, deform, dent, warp or fracture under normal driving conditions. They also claim Mercedes failed to honor the terms of the warranty, forcing customers to pay to repair or replace the defective rims.
The plaintiffs are represented by Nadeem Faruqi, Courtney E. Maccarone and Antonio Vozzolo of Faruqi and Faruqi LLP; James J. Sabella, Shelly L. Friedland and Michael Manuel of Grant & Eisenhofer PA; Mark Gardy, James Notis and Charles A. Germershausen of Gardy & Notis LLP; James E. Cecchi and Lindsey H. Taylor of Carella Byrne Cecchi Olstein Brody & Agnello; Douglas Hirsch of Sadis & Goldberg LLP; and Steven N. Berk of Berk Law PPC.
The Mercedes Rim Defect Class Action Lawsuit is Vincent Luppino, et al. v. Mercedes-Benz USA LLC, et al., Case No. 2:09-cv-05582, in the U.S. District Court for the District of New Jersey.
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