Hyundai Files Motion to Dismiss Stalling Defect Class Action Lawsuit

On Monday, Hyundai Motor Co., the defendant in the Hyundai stalling defect class action lawsuit alleging defects in the popular Santa Fe model, filed a motion to dismiss the action arguing that the plaintiffs are unfairly capitalizing on a voluntary effort by Hyundai to remedy the problem.

In August, the plaintiffs filed the Hyundai class action lawsuit in California federal court alleging that Hyundai was aware of a defect in 2010-2012 Santa Fe vehicles that made the popular car model prone to suddenly and unexpectedly stalling during a drive.

In it motion filed on Monday, Hyundai complains that the plaintiffs took advantage of a service campaign Hyundai began of its own volition to help remedy the problem. Hyundai claims in its motion that after learning the SUVs may experience a “momentary reduction” in engine power and potentially stall when operating in low-speed conditions, it began the campaign. The campaign offers free repairs to the owners and lessors of the vehicles through dealerships. Hyundai complains that instead of seeking the offered repair, the plaintiffs filed the stalling defect class action lawsuit a week after the campaign was announced and accused the automaker of concealing the defect.

According to Hyundai, the lead plaintiffs “rushed to the courthouse” to file the stalling defect class action lawsuit alleging the car maker breached its warranty and violated of California Unfair Competition Law, Song-Beverly Consumer Warranty Act and Magnuson-Moss Warranty Act. Hyundai argues further that the plaintiffs’ allegations should fail because their complaint doesn’t establish any injuries they suffered or warranty issues.

“This case proves that no good deed goes unpunished,” says Hyundai in its motion to dismiss the stalling defect class action lawsuit. “Plaintiffs’ opportunistic lawsuit should be dismissed immediately because any resolution of the … ‘issues to be decided’ indisputably must be made in [Hyundai’s] favor,” Hyundai continues. “Although [the plaintiffs] each claim to have experienced the alleged stalling defect, neither claims to have paid out-of-pocket to have their vehicles inspected or repaired.”

The initial Hyundai class action lawsuit was filed in August of this year. In the complaint, the plaintiffs alleged that Hyundai knew that the 2010-2012 Santa Fe SUVs suffered from a defect causing unexpected stalling for years. The plaintiffs alleged that they had brought their Santa Fe vehicle into the dealership for repair, but had eventually been forced to trade in the vehicle. The plaintiffs further argue that that service campaign by Hyundai did not adequately address the issue.

Hyundai argues that the plaintiffs did not establish that they had experiences any economic harm, out-of-pocket-loss or other injury. Hyundai argues further that the service campaign offers vehicle owners a “simple fix” consisting of a free software update that should remedy the stalling problem.

The plaintiffs are represented by Lionel Z. Glancy and Mark S. Greenstone of Glancy Binkow & Goldberg LLP.

The Hyundai Stalling Defect Class Action Lawsuit is Reniger, et al. v. Hyundai Motor America, et al., Case No. 3:14-cv-03612, in the U.S. District Court for the Northern District of California.