BMW Class Action Lawsuit Alleges Electrical Component Design Defect

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BMW has been hit with a proposed $5 million class action lawsuit alleging that the car maker placed vital electrical components at the lowest part of the vehicle making them susceptible to water damage.

Lead plaintiff George Catalano is suing BMW of North America LLC (BMW NA) and Bayerische Motoren Werke Aktiengesellschaft (BMW AG) for intentionally concealing the serious design defect that can cause a vehicle to shut-down completely with very little warning.

The BMW class action lawsuit claims the company was aware that the location of the electrical components could cause “catastrophic failure and legitimately compromise driver and passenger safety” yet they actively concealed the risk from consumers.

Catalano claims he purchased a BMW 530xi sports wagon in New York City that came with a certified pre-owned warranty. In 2012, Catalano and his wife were driving on a four-lane divided highway when the vehicle’s dashboard started flashing that a “complete electrical failure” was imminent. The vehicle allegedly shut down completely but fortunately Catalano was able to avoid a serious accident by pulling into a parking lot.

According to the BMW electrical components lawsuit, Catalano was able to get his sports wagon to a BMW dealership where they found about two inches of standing water had accumulated on the electronics located underneath the car’s spare tire compartment. The dealership was able to drain the water and replace some of the corroded electronics and informed Catalano that the water build-up was the result of clogged sunroof drain tubes. The plaintiff assumed it would be covered under the certified pre-owned warranty but BMW refused to cover the $2,000 repair bill.

Catalano was then allegedly informed that he shouldn’t even place water bottles in the trunk of his BMW sports wagon as the electronic component compartment is not watertight and it was likely that the vehicle could fail again. Catalano claims that had he known that the BMW defects would prevent him from taking the vehicle out in the rain, carrying water in his trunk or even camping, he never would have bought the BMW sports wagon.

Catalano believes that potential Class Members were not warned of the dangerous location of the electrical equipment which he considers odd based on the detailed information regarding the “trunk” in the BMW’s owner manual. He claims BMW’s manual warns consumers that the trunk lid pivots “back and up” and also repeatedly cautions owners to make sure they don’t close the trunk lid on their hands yet provided no warning about the dangers of liquid near the trunk.

Catalano alleges BMW fraudulently concealed that the vital electrical equipment was located at the bottom of the trunk compartment and that water damage could cause an electrical failure.

If approved, the BMW class action lawsuit would be open to Class Members who purchased or leased any BMW X5 series vehicles, X3 series vehicles, and 5 series vehicles in the state of New York.

Catalano is also proposing a “warranty subclass” which would be open to Class Members who purchased or leased any of the class vehicles mentioned and submitted their vehicle for repairs under the warranty for water damage to any RCDC Module, SDARS Module, PDC Module or other electronic components located in the lowest portion of the trunk compartment of the vehicle and incurred out of pocket expenses as a result of BMW’s refusal to make the repairs. Catalano is also submitting an “injunctive relief subclass” which would be open to Class Members who purchased the named class vehicles and the electronics of those vehicles — including but not limited to the RCDC Module, SDARS Module, or PDC Module — are located in the lowest portion of the vehicles’ trunks.

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 Mar. 1, 2016, 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.

UPDATE 2: 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 3: 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 4: The BMW Electronic Component Water Damage Class Action Settlement is now open! Click here to file a claim.