Sipe v. Fleetwood Motor Homes of Pennsylvania

574 F.Supp.2d 1019

Paul SIPE, Plaintiff, v. FLEETWOOD MOTOR HOMES OF PENNSYLVANIA, INC., a Delaware corporation qualified to transact business in the State of Minnesota, and Workhorse Custom Chassis, LLC, an Illinois limited liability company qualified to transact business in the State of Minnesota, Defendants.

Civil No. 07-1460 (JRT/FLN).

United States District Court, D. Minnesota.

August 29, 2008.

COPYRIGHT MATERIAL OMITTED

Todd E. Gadtke, Hauer Fargione Love Landy & McEllistrem, Daniel J. Brennan, Brennan Law Office, Minneapolis, MN, for plaintiff.

Mark R. Bradford, Bassford Remele, PA, Minneapolis, MN, for defendant Fleetwood Motor Homes of Pennsylvania, Inc.

Melissa R. Stull and John D. Sear, Bowman & Brooke LLP, Minneapolis, MN, for defendant Workhorse Custom Chassis, LLC.

MEMORANDUM OPINION AND ORDER GRANTING DEFENDANTS' MOTIONS FOR SUMMARY JUDGMENT

JOHN R. TUNHEIM, District Judge.

Plaintiff brought this action against defendants Fleetwood Motor Homes of Pennsylvania, Inc. ("Fleetwood") and Workhorse Custom Chassis, LLC ("Workhorse"), alleging breach of warranty under the Magnuson-Moss Warranty Act, revocation of acceptance, and violations of Minnesota's Lemon Law. This case is before the Court on defendants' motions for summary judgment. For the reasons discussed below, the Court grants defendants' motions.

BACKGROUND¹

On September 18, 2004, plaintiff purchased a Fleetwood Southwind 36B motor home from Brambillas, Inc. ("Brambillas"), a Minnesota RV dealer located in Shakopee, Minnesota. Defendant Fleetwood manufactured the motor home. Defendant Workhorse manufactured the motor home chassis.² Plaintiff paid $105,616.75 for the motor home, which was delivered to plaintiff on October 21, 2004. Plaintiff also received an Owner's Manual containing Fleetwood's Limited Warranty, as well as Workhorse's Limited Warranty covering the motor home's chassis.

Plaintiff alleges that the motor home and chassis suffer from various manufacturing defects, including (1) a bowed kitchen wall, (2) engine stalling issues, (3) paint overspray underneath one wheel well, (4) rust stains on the motor home's exterior fiberglass, (5) a missing mud flap, (6) a small dent in the exterior fiberglass, (7) a missing outside water heater door clip, (8) an exterior storage door that does not close easily, (9) problems with the rear leveling jacks, and (10) a transmission fluid leak.

With respect to the leveling jacks, plaintiff alleges that one of the motor home's rear leveling jacks does not retract completely. According to plaintiff, the leveling jacks have undergone six separate repair attempts. Each time, Brambillas cleaned and lubricated the leveling jacks and, on one occasion, performed some rewiring. Following these repair attempts, Power Gear, the manufacturer of the leveling jacks, provided new springs at no cost to the plaintiff under the terms of a separate warranty. Brambillas installed the new springs on August 10, 2006, at no cost to plaintiff. Plaintiff has not experienced any problems with the leveling jacks since the new springs were installed. Plaintiffs expert, Tom Battenberg, stated in a report that he had inspected the operation of the jacks and found that the jacks now operated properly. However, Battenberg also stated that Brambillas failed to take appropriate steps to accurately diagnose and repair the jack problem, and that repair of the jacks should have been accomplished in one or two attempts.

With respect to the motor home chassis, plaintiff alleges that the Workhorse engine has stalled on three separate occasions, each time while plaintiff was driving in traffic. After the first such incident, plaintiff brought the motor home to Brambillas. On October 28, 2004, Brambillas service personnel conducted a computer scan of the engine to try to identify the problem. The reviewing technician found no problems with the engine, and wrote on the work order "RAN TECH SCAN—NO DIAG. TROUBLE CODE STORED OR CURRENT." According to plaintiff, he brought the motor home back to Brambillas for inspection and repair of the engine problem on two additional occasions. Plaintiff concedes that he has not discussed the engine problem directly with Workhorse and did not provide Workhorse with any written notification regarding the problem prior to filing this lawsuit.

According to plaintiff, the last time the engine stalled was in June 2005. Plaintiff stated in deposition testimony that the engine problem has not prevented him from taking trips in his motor home. Plaintiff has taken at least nine trips since June 2005. According to Workhorse, it has never refused to perform repairs or work covered under the limited warranty.

On August 7, 2007, Workhorse Regional Service Manager Rob Zulian test drove plaintiffs motor home. The engine did not stall during this time. Zulian also ran a diagnostic computer scan on the engine, which revealed no diagnostic codes related to an engine stalling problem. Plaintiffs expert, Timothy Huttner, also inspected the motor home and ran a computer scan on the engine. The scan revealed three codes. None of the codes were related to an engine stalling condition.

Fleetwood representative Barry Krueckeberg also inspected each of the problems plaintiff identified with the Fleetwood motor home. Krueckeberg observed that the kitchen wall was not bowed, that the motor home was equipped with an outdoor water heater door clip, and that the exterior storage doors opened and closed properly. Krueckeberg did not observe any rust stains or paint overspray on the motor home, and determined that the leveling jacks functioned properly. He did not observe any missing mudflaps or any denting in the exterior fiberglass.

In addition to the problems identified above, plaintiff alleges he discovered leaked transmission fluid under the motor home in January 2007. Plaintiff reported the leak to a Brambillas service manager. According to plaintiff, Brambillas service personnel examined and confirmed the leak but refused to attempt any repairs because plaintiff had initiated this litigation. Plaintiff then brought his motor home to Boyer Trucks in Savage, Minnesota. Bill Hanson, a service technician at Boyer, found no problems with the transmission, and stated that the leaked transmission fluid was likely the result of a "cold leak," which occurs when a rubber gasket shrinks in cold weather and allows transmission fluid to escape. Hanson stated that repair of the transmission was not necessary.

On at least two occasions prior to this litigation, plaintiff told the service manager at Brambillas, Thomas Weller, that he was unhappy with the motor home and with Brambillas's services. Plaintiff told Weller that if Brambillas "did not resolve the warranted problems [he] was going to take the next step toward litigation." Plaintiff also told Weller on one occasion that he could take the motor home and "shove it up his ass."

Plaintiff listed his motor home for sale in February 2006. He initially listed the sale price at $94,900, advertised the motor home on www.rvtrader.com, and described the motor home as being in "excellent condition." Plaintiff later assessed the Kelly Blue Book value of the motor home at $84,900 and reduced the asking price to that amount. Plaintiff stated that he planned to change the description of the motor home from excellent condition to "great condition" or "good condition," but that he has not yet done so.

Plaintiff initiated this action against defendants in February 2007. Plaintiffs Complaint asserts two claims against defendant Fleetwood. In Count III, plaintiff alleges that Fleetwood breached the terms of its warranty in violation of the Magnuson-Moss Warranty Act ("MMWA"), 15 U.S.C. §§ 2301 et seq. Plaintiff alleges in Count V that he revoked his acceptance of the motor home under Minnesota Statute § 336.2-608. Plaintiff alleges four claims against defendant Workhorse. Counts I and II of plaintiffs Complaint allege that Workhorse violated Minnesota's Lemon Law under Minnesota Statute § 325F.665. In Count IV, plaintiff alleges that Workhorse breached the terms of its warranty in violation of the MMWA. In Count VI, plaintiff alleges that he revoked his acceptance of the motor home as to defendant Workhorse.³ Defendants have filed separate motions for summary judgment on all of plaintiffs claims.

ANALYSIS

I. STANDARD OF REVIEW

Summary judgment is appropriate in the absence of any genuine issue of material fact and when the moving party can demonstrate that it is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c). A fact is material if it might affect the outcome of the suit, and a dispute is genuine if the evidence is such that it could cause a reasonable jury to return a verdict for either party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A court considering a motion for summary judgment must view the facts in the light most favorable to the non-moving party and give that party the benefit of all reasonable inferences that can be drawn from the facts. Zenith Radio Corp., 475 U.S. at 587, 106 S.Ct. 1348.

II. MMWA CLAIMS (COUNTS III AND IV)

Plaintiff argues that both Fleetwood and Workhorse breached the terms of their warranties in violation of the Magnuson-Moss Warranty Act. The MMWA imposes certain minimum requirements on a warrantor of consumer products, including requirements that a warrantor remedy defects in its product within a reasonable time and without charge, and that a consumer be allowed to elect either a refund or replacement of the product after a reasonable number of attempts to remedy the defects. 15 U.S.C. § 2304(a)(1),(4). Defendants argue, and plaintiff concedes, that the substantive terms of § 2304(a) apply only to full warranties. See Schimmer v. Jaguar Cars, Inc., 384 F.3d 402, 405 (7th Cir.2004) (a limited warranty is "not subject to § 2304 and thus not subject to [the MMWA]'s substantive remedies"); ...