Contributors

Eric P. Weiss

Principal

On October 31, 2024, the California Supreme Court published its long-awaited opinion in Rodriguez v. FAC US, LLC which answered the following question relating to claims under the Song-Beverly Act: Is a used vehicle that is still covered by the manufacturer’s express warranty a “new motor vehicle” within the meaning of Civil Code section 1793.22(e)(2), which defines “new motor vehicle” as including a “motor vehicle sold with a manufacturer’s new car warranty”?

In a victory for vehicle manufacturers, the Court answered this question “no,” albeit with a caveat.

Facts

Plaintiffs purchased a Dodge truck with approximately 55,000 miles on it from a used car dealership. While the manufacturer’s basic warranty had expired, the truck still had a limited powertrain warranty that was in effect. Following the plaintiffs’ purchase of the truck, the vehicle experienced major defects.

Court Proceedings

The plaintiffs sued the manufacturer, FCA US, LLC (“FCA”) claiming that they were owed either a new vehicle or a refund of the purchase price of their truck under the Song Beverly Act, California’s lemon law. FCA argued that the refund-or-replace remedy does not apply because plaintiffs’ car was not a “new motor vehicle.” The trial court and Court of Appeal agreed with FCA. The case then went to the California Supreme court which affirmed the ruling by the Court of Appeal. Specifically, the Court held:

We conclude that a motor vehicle purchased with an unexpired manufacturer’s new car warranty does not qualify as a “motor vehicle sold with a manufacturer’s new car warranty” under section 1793.22, subdivision (e)(2)’s definition of “new motor vehicle” unless the new car warranty was issued with the sale.

What now?

Unless a used car is sold with a new car warranty, it will not qualify for the refund-or-replace remedy provided by the Song Beverly Act, even if the original manufacturer’s new car warranty has not yet expired at the time of sale. It should be emphasized that the facts in this case differ from the purchase of a demonstrator or Certified Pre-Owned vehicle, which is still entitled to have the protections of California’s lemon law if the vehicle satisfies the criteria for being a “lemon.”