Mercedes-Benz Faces Class Action Over Failure Honor Warranties

In a recent development, Mercedes-Benz USA, LLC (MBUSA), a Delaware limited liability company with its principal place of business in Georgia, has been hit with a class action lawsuit. The plaintiff, Robert Capazzi, alleges that the company breached its warranty and violated the Magnuson-Moss Warranty Act (MMWA) by failing to fix the navigation system in their vehicles. The case has been removed from the Superior Court of Fulton County, Georgia to the United States District Court for the Northern District of Georgia under the provisions of the Class Action Fairness Act (CAFA).

What Laws are Involved in the Case?

The plaintiff's allegations hinge on two main laws: the Magnuson-Moss Warranty Act and the breach of warranty. The Magnuson-Moss Warranty Act, a federal law, protects consumers from deceptive warranty practices. It requires manufacturers and sellers to provide consumers with detailed information about warranty coverage. In this case, the plaintiff alleges that MBUSA violated this act.

Additionally, the plaintiff alleges a breach of warranty. In essence, a warranty is a promise by a manufacturer or seller to stand behind its product. The plaintiff claims that MBUSA failed to uphold its warranty by not adequately repairing the navigation system in their vehicles.

What Led to the Filing of the Lawsuit?

The plaintiff alleges that despite the repair attempts, the navigation systems in the vehicles remained faulty. The plaintiff further alleges that MBUSA was aware of the issue but failed to fix it, thereby breaching the warranty and violating the MMWA.

The plaintiff then filed the Class Action Complaint on May 25, 2023, in the Superior Court of Fulton County, Georgia. MBUSA was served with the Class Action Complaint on June 5, 2023.

Who Are the Class Members?

The proposed class comprises individuals and entities who own or lease Mercedes vehicles covered by the manufacturer's warranty and have received at least one repair attempt on the navigation system of their vehicle. The plaintiff seeks to represent this class, alleging that they have all been affected by MBUSA's alleged failure to uphold its warranty and its alleged violation of the MMWA.

What is the Dollar Amount at Stake?

The defendant asserts that federal diversity jurisdiction exists under CAFA because the case meets the requirements of being a class action, there is diversity of citizenship between the parties, and the amount in controversy exceeds $5,000,000. The plaintiff seeks injunctive relief, replacement of the navigation system, rescission and revocation of class vehicle purchase/lease transactions, damages, and attorneys' fees.

The defendant argues that the amount in controversy exceeds $5,000,000 based on the potential number of vehicles involved, the cost of replacing the navigation system, potential rescission and revocation remedies, and the inclusion of attorneys' fees and litigation expenses.

What Could Be the Next Steps in the Case?

MBUSA denies all of the plaintiff's allegations and disputes the entitlement to any relief. As the case progresses, it will be interesting to see how the court interprets the laws at hand and the evidence presented. The outcome of this case could have significant implications for both MBUSA and its customers.