Plaintiff brings this action individually and on behalf of all persons who purchased or leased a Ford Motor Company vehicle in the State of California and were offered vehicle repurchase or replacement by Ford Motor Company from four years prior to the filing of the instant Complaint until class certification (“Class Members”).
According to the complaint, since 2009, Ford has systematically violated the provisions of California’s Song Beverly Consumer Warranty Act that govern the repurchase or replacement of defective vehicles from buyers. Specifically, Ford knew that it has systematically violated California Lemon Law by repurchasing or replacing defective vehicles (1) without reimbursing or crediting the buyer for certain statutory damages including, but not limited to, registration fees for each year that the vehicle is registered, full-coverage insurance for each year the vehicle is insured, and extended service contracts, and (2) while improperly making certain deductions from the vehicles’ statutorily mandated repurchase prices, including for “abnormal wear or collision damage (including broken glass)” or alternatively, requiring consumers to pay for repairs at their own expense before Ford agrees to repurchase or replace defective the vehicles.
Ford’s improper deductions from, and failure to reimburse and credit Plaintiff and the other Class Members for, their full statutory repurchase prices violate the Song-Beverly Act, which only permits a single, narrowly-drawn deduction for mileage offset. Accordingly, if the buyer agrees to Ford’s repurchase or replacement terms, which Ford itemized in its Refund Worksheet for Mr. Potter and other Class Members, he or she receives less than the statutory buy-back and replacement amount required under the Act.
According to the complaint, the buyer’s agreement to accept any amount lower than the statutory repurchase or replacement price is void under California law. This is because California Civil Code section 1790.1 states that “any waiver by the buyer of consumer good of the provisions” of the Song-Beverly Consumer Warranty Act “shall be deemed contrary to public policy and shall be unenforceable and void.”