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In re Ford Motor Co. E-350 Can Products Liability Litigation (No. II)

In re Ford Motor Co. E-350 Can Products Liability Litigation (No. II)

In re Ford Motor Co. E-350 Can Products Liability Litigation (No. II)

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2012 U.S. Dist. LEXIS 13887, *Page 15349, and <strong>re</strong>liance, which is not. The court concluded thatthe homeowners did not need to allege that they wouldnot have borrowed from the lender if they had known thetruth about the fee; rather, the causation <strong>re</strong>qui<strong>re</strong>ment hadbeen met, because "plaintiffs allege that because of defendant'sdeceptive act, they we<strong>re</strong> forced to pay a $275fee that they had been led to believe was not <strong>re</strong>qui<strong>re</strong>d."Id. at 612. As this <strong>Co</strong>urt <strong>re</strong>ads Stutman's causation analysis,Plaintiffs in this case need not show that they wouldnot have purchased the E-<strong>350</strong> van if they had known ofthe handling problems, but only that they incur<strong>re</strong>d a lossas a <strong>re</strong>sult of the deceptive act. If Plaintiffs have noknowledge [*59] of the allegedly deceptive act (the allegedmis<strong>re</strong>p<strong>re</strong>sentation), or if Plaintiffs have actualknowledge of the handling defect prior to the purchase(and, for instance, simultaneously negotiate a lowerprice), Stutman is inapposite, and these Plaintiffs havenot shown causation. Identifying which putative classmembers purchased under similar circumstances will<strong>re</strong>qui<strong>re</strong> individualized inquiries that a<strong>re</strong> impracticable inclass litigation.c. <strong>In</strong>juryChief Judge Brown ruled in the July 9 Opinion thatthe actual injury <strong>re</strong>qui<strong>re</strong>ment <strong>re</strong>cognized in Frank v.Daimler Chrysler <strong>Co</strong>rp. applied to Plaintiffs' GBL § 349claim. July 9 Opinion, 2010 U.S. Dist. LEXIS 68241,2010 WL 2813788, at *70-72. Under Frank, a party doesnot meet the injury <strong>re</strong>qui<strong>re</strong>ment of GBL § 349 unless theallegedly defective product fails and causes personalinjury or property damage, or the person incurs <strong>re</strong>paircosts or diminished value as a <strong>re</strong>sult of the defect. 741N.Y.S.2d at 17 (affirming dismissal of § 349 claim whe<strong>re</strong>the "plaintiffs have not been involved in any accidentsand have not suffe<strong>re</strong>d any personal injuries or propertydamage," and "plaintiffs d[id] not allege that any seat hasfailed, been <strong>re</strong>trofitted or <strong>re</strong>pai<strong>re</strong>d, nor have plaintiffsattempted [*60] to sell, or sold an automobile at a financialloss because of the alleged defect"). <strong>In</strong> their oppositionto summary judgment, Plaintiffs did not argue thatthey had a common diminution in value injury underNew York law that would be measu<strong>re</strong>d by the cost of a<strong>re</strong>trofit. (See Doc. <strong>No</strong>. 247 at 36-37). <strong>In</strong>stead, Plaintiffsasserted that they had p<strong>re</strong>sented some evidence of out-ofpocket<strong>re</strong>pair costs (for Bishop Anderson), and that theywould otherwise "<strong>re</strong>ly on expert testimony to determineif, and how much, prices of the new and used vans <strong>re</strong>flectedtheir publicized problems." (Id. at 37). Applyingthe Frank standard to the individual New York Plaintiffs'<strong>re</strong>spective proofs, Chief Judge Brown concluded thatBishop Anderson had shown sufficient proofs of actualinjury under Frank to c<strong>re</strong>ate a genuine dispute of fact,but that Bar<strong>re</strong>tt had not, because he "1) did not allege anyout-of-pocket <strong>re</strong>pair or <strong>re</strong>ntal costs; 2) fills his vehicle tocapacity when he has sufficient passengers; and 3) statedthat he has no plans to sell his van." 2010 U.S. Dist.LEXIS 68241, [WL] at *71. Chief Judge Brown the<strong>re</strong>fo<strong>re</strong>granted summary judgment against Bar<strong>re</strong>tt on all of hisclaims.Nevertheless, Plaintiffs now argue that they can p<strong>re</strong>sentcommon [*61] proof of a uniform <strong>re</strong>trofit injury,because they have expert testimony <strong>re</strong>flecting that thehandling defects a<strong>re</strong> inhe<strong>re</strong>nt in the E-<strong>350</strong> design. <strong>In</strong>other words, Plaintiffs contend that they can use the uniformcost of a <strong>re</strong>trofit ($2,100) as a proxy for the inflatedvalue named Plaintiffs and putative class members paidas a <strong>re</strong>sult of <strong>Ford</strong>'s packaging of the E-<strong>350</strong> as a "15-passenger van." Plaintiffs' argument runs flat, becausePlaintiffs have not sought <strong>re</strong>consideration of Chief JudgeBrown's Frank rulings, which a<strong>re</strong> now law of the case,and because the <strong>re</strong>cord <strong>re</strong>veals that Plaintiffs do not havecommon proof of actual injuries.Plaintiffs make no attempt to show that Chief JudgeBrown's Frank rulings we<strong>re</strong> erroneous applications ofNew York law, or that they have common proof of actualinjury under Frank. <strong>In</strong>stead, Plaintiffs just dis<strong>re</strong>gardFrank in their opening brief, and it appears that Plaintiffswant this <strong>Co</strong>urt to dis<strong>re</strong>gard Frank as well. 11 This <strong>Co</strong>urtcannot do so; the law of the case doctrine p<strong>re</strong>vents this<strong>Co</strong>urt from arbitrarily choosing which prior decisions inthis case <strong>re</strong>main in effect. Similar to a motion for <strong>re</strong>consideration,courts will only depart from the law of thecase when [*62] "(1) new evidence is available; (2) asupervening new law has been announced; or (3) theearlier decision was clearly erroneous and would c<strong>re</strong>atemanifest injustice." <strong>In</strong> <strong>re</strong> City of Phila. Litig., 158 F.3d711, 718 (3d Cir. 1998) (citation omitted); see also Falorv. G&S Billboard, <strong>No</strong>. 04-2373, 2008 U.S. Dist. LEXIS99613, 2008 WL 5190860, at *2 (D.N.J. Dec. 10, 2008)(characterizing law of the case issues as "the oppositeside of the motion for <strong>re</strong>consideration coin"). Plaintiffshave not p<strong>re</strong>sented grounds for departing from the law ofthe case, and thus this <strong>Co</strong>urt must apply Frank. This<strong>Co</strong>urt is persuaded that, under Frank, the p<strong>re</strong>siding courtwould need to conduct the sort of detailed analysis employedby Chief Judge Brown to <strong>re</strong>solve the claims ofBar<strong>re</strong>tt and Bishop Anderson for each of the thousandsof putative class members. Such individualized inquiriesa<strong>re</strong> impracticable in class litigation.11 Plaintiffs' strategy of dis<strong>re</strong>garding Frank appearsto have changed by the <strong>re</strong>ply brief, whe<strong>re</strong>Plaintiffs appear to suggest that Chief JudgeBrown concluded that Frank did not apply toPlaintiffs' claims. (See Pls.' Reply Br. at 33) ("Asdiscussed he<strong>re</strong>in, and as this <strong>Co</strong>urt p<strong>re</strong>viouslyfound in adjudicating <strong>Ford</strong>'s summary [*63]judgment motions, [citations omitted], [sic] doesnot control he<strong>re</strong>."). But, as noted above, Chief

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