Chrysler Class Action over Defective Power Systems Faces Fourth Dismissal Bid

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On Monday, defendant Chrysler Group LLC filed a motion to dismiss allegations that it misled auto buyers and concealed defective power systems in a class action lawsuit that hit the company last November. If successful, this will be the fourth and final time that Chrysler has convinced a judge to dismiss the case.

Lead plaintiffs, eight Chrysler owners in six different states, alleged in their November complaint that Chrysler concealed defective power systems in its vehicles then denied claims the auto buyers made under the Chrysler warranty. The plaintiffs allege that the 2011 and 2012 Jeep Grand Cherokee, Dodge Durango and Dodge Grand Caravan vehicles contain the defective power system module.

The alleged power system defect caused problems for the vehicles, according to the class action lawsuit, including stalling in traffic, and malfunctioning headlights and windshield wipers. The plaintiffs claimed that Chrysler acted fraudulently and violated the Magnuson-Moss Warranty Act.

Chrysler moved to dismiss the class action lawsuit several times starting in February of this year when the company argued that the allegations in the filing did not match up to the lead plaintiffs’ actual claims. Chrysler also filed a motion for a more definite statement of the claims against it.

U.S. District Judge Dean D. Pregerson dismissed the class action lawsuit on March 31, but allowed the plaintiffs to amend their class action a few months later. At that time, Judge Pregerson pointed out that the original complaint contained many inconsistencies, but the plaintiffs had adequately argued that Chrysler knew of the alleged defective power modules.

On Friday, regarding that amended Chrysler power system class action lawsuit, Chrysler argued that the plaintiffs had not adequately addressed the judge’s requested changes in a hearing about the class action lawsuit.

“The last complaint wasn’t even close,” said John W. Rogers of Thompson Coburn LLP, the attorney for Chrysler, “what we have here is a defect outside of the warranty,” he continued during the hearing.

The attorney for Chrysler also argued that the plaintiffs did not show how Chrysler concealed the alleged defect and how that would have affected a consumer’s decision to purchase a Chrysler with the “particularity” required by the law. Rogers also argued that the plaintiff’s claims that Chrysler violated the Magnuson-Moss Warranty Act should be dismissed because the alleged defects do not fall under the warranty written and issued by Chrysler.

“This is a defect that can cause a car to stall on the freeway, can cause headlights to turn on and off,” said the attorney representing the plaintiffs in the Chrysler power system class action lawsuit, David Stein of Girard Gibbs LLP. “We can presume reasonable people would care about this,” the plaintiff’s attorney continued on Monday.

The lead plaintiffs are represented by Eric. H. Gibbs, David Stein and Scott M. Grzenczyk of Girard Gibbs LLP; and Todd M. Schneider and Joshua G. Konecky of Schneider Wallace Cottrell Konecky LLP.

The Chrysler Defective Power System Class Action Lawsuit is Velasco, et al. v. Chrysler Group LLC, Case No. 2:13-cv-08080, in the U.S. District Court for the Central District of California.