{"id":886209,"date":"2015-12-22T19:29:18","date_gmt":"2015-12-23T02:29:18","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=886209"},"modified":"2015-12-22T19:29:18","modified_gmt":"2015-12-23T02:29:18","slug":"ninth-circuit-resolves-federalstate-court-split-regarding-whether-latent-defects-discovered-after-duration-of-warranty-period-are-actionable-under-californias-lemon-law-sta","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/ninth-circuit-resolves-federalstate-court-split-regarding-whether-latent-defects-discovered-after-duration-of-warranty-period-are-actionable-under-californias-lemon-law-sta\/","title":{"rendered":"Ninth Circuit Resolves Federal\/State Court Split Regarding Whether \u201cLatent\u201d Defects Discovered After Duration of Warranty Period are Actionable under California\u2019s Lemon Law Statute"},"content":{"rendered":"<p>Laura C. Williams and R. Bryan Martin | Haight Brown &amp; Bonesteel | December 14, 2015<\/p>\n<p>In <em>Daniel v. Ford Motor Company<\/em> (filed 12\/02\/15), the Ninth Circuit resolved a federal and state court split on the issue of whether consumers can sustain a breach of implied warranty claim under California\u2019s Song Beverly Consumer Warranty Act (aka the \u201clemon law\u201d statute) for <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/to-see-or-not-to-see-the-law-of-patent-vs-latent-defects\/\" target=\"_blank\">\u201clatent\u201d defects<\/a> discovered <em>after<\/em> the warranty period has expired. Answering this question in the affirmative, the Ninth Circuit followed the holding in the California state appellate decision of <em>Mexia v. Rinker Boat Co.<\/em> 95 Cal.Rptr.3d 285 (2009), which definitively determined there is nothing in California\u2019s lemon law that requires a consumer to discover a latent defect during the duration of the warranty.<\/p>\n<p>The underlying class action lawsuit was brought in federal district court by purchasers of Ford Focus vehicles. The plaintiffs alleged Ford was aware of, but failed to disclose, a rear suspension defect in the Focus that resulted in premature tire wear which can cause decreased vehicle control, catastrophic tire failure and drifting on wet or snowy roads. The plaintiffs alleged a number of claims including violations of California\u2019s Song Beverly Consumer Warranty Act and Magnuson Moss Warranty Act. Ford successfully moved for summary judgment on all claims prompting an appeal.<\/p>\n<p>On review, the Ninth Circuit identified three key issues it would decide: 1) whether summary judgment was proper where the district court had declined to follow the precedent in <em>Mexia<\/em>, which held \u201clatent\u201d defects may still breach the implied warranty even when they are not discovered within warranty\u2019s duration period; 2) whether summary judgment was proper where the district court misinterpreted the language of Ford\u2019s express warranty; and 3) whether the district court properly credited certain evidence presented by the plaintiffs.<\/p>\n<p>Turning to issue one, the Ninth Circuit acknowledged the Song-Beverly Consumer Warranty Act contains a one year durational limit for the implied warranty of merchantability under California Civil Code \u00a71791.1(c). The Court went on to emphasize the controlling authority in <em>Mexia<\/em>, which stated, \u201c[t]here is nothing [in \u00a71791.1] that suggests a requirement that the purchaser discover and report to the seller a latent defect within that time period.\u201d<\/p>\n<p>In response to Ford\u2019s argument that a number of federal district court cases had distinguished and rejected <em>Mexia<\/em> outright, the Ninth Circuit reiterated the rule that it was bound to follow the intermediate courts of the State of California, i.e. <em>Mexia<\/em>, unless there was convincing evidence the California Supreme Court (which had denied review) would have decided the matter differently had it granted review. Finding no published or unpublished California court opinions disapproving or rejecting <em>Mexia<\/em>, the Ninth Circuit upheld <em>Mexia<\/em> emphasizing the case was in line with the legislative intent to expand consumer protections and remedies.<\/p>\n<p>With respect to issue two, the Ninth Circuit found Ford\u2019s express warranty was ambiguous as it was unclear whether it was limited to manufacturing defects or if it also included <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/square-peg-meet-round-hole-design-defects-breach-warranty-defects-material-workmanship\/\" target=\"_blank\">design defects<\/a> upon which plaintiffs\u2019 claims were premised. The Court determined that under contract interpretation principles, the <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/south-carolina-supreme-court-holds-that-exclusions-preclude-coverage-for-damage-caused-by-defective-work\/\" target=\"_blank\">ambiguous warranty<\/a> must be construed against the drafter, Ford, and thus the warranty was deemed to include both manufacturing and design defects, allowing plaintiffs to proceed with their claims.<\/p>\n<p>Finally, analyzing issue three, the Ninth Circuit determined, contrary to the district court, that plaintiffs had presented sufficient evidence to create a triable issue as to the element of reliance with respect to their fraudulent omission claims under California\u2019s Consumer Legal Remedies Act and Unfair Competition Law. Specifically&#8230;<\/p>\n<p><a href=\"http:\/\/www.hbblaw.com\/Ninth-Circuit-Resolves-FederalState-Court-Split-Regarding-Whether-Latent-Defects-Discovered-After-Duration-of-Warranty-Period-are-Actionable-under-Californias-Lemon-Law-Statute-12-14-2015\/\" target=\"_blank\">To finish reading this article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Laura C. Williams and R. Bryan Martin | Haight Brown &amp; Bonesteel | December 14, 2015 In Daniel v. Ford Motor Company (filed 12\/02\/15), the Ninth Circuit resolved a federal and state court split on the issue of whether consumers can sustain a breach of implied warranty claim under California\u2019s Song Beverly Consumer Warranty Act&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/ninth-circuit-resolves-federalstate-court-split-regarding-whether-latent-defects-discovered-after-duration-of-warranty-period-are-actionable-under-californias-lemon-law-sta\/\">Continue reading <span class=\"screen-reader-text\">Ninth Circuit Resolves Federal\/State Court Split Regarding Whether \u201cLatent\u201d Defects Discovered After Duration of Warranty Period are Actionable under California\u2019s Lemon Law Statute<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[4],"tags":[608,7706],"class_list":["post-886209","post","type-post","status-publish","format-standard","hentry","category-construction-defects","tag-design-defects","tag-latent-defects","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ninth Circuit Resolves Federal\/State Court Split Regarding Whether \u201cLatent\u201d Defects Discovered After Duration of Warranty Period are Actionable under California\u2019s Lemon Law Statute - Advise &amp; Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/ninth-circuit-resolves-federalstate-court-split-regarding-whether-latent-defects-discovered-after-duration-of-warranty-period-are-actionable-under-californias-lemon-law-sta\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ninth Circuit Resolves Federal\/State Court Split Regarding Whether \u201cLatent\u201d Defects Discovered After Duration of Warranty Period are Actionable under California\u2019s Lemon Law Statute - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Laura C. Williams and R. Bryan Martin | Haight Brown &amp; Bonesteel | December 14, 2015 In Daniel v. 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