Court Rejects Nissan Brake Class Action

The United States Court of Appeals for the Sixth Circuit has overturned the class certification for ten statewide lawsuits against Nissan North America, Inc. The lawsuits centered around alleged defects in Nissan’s automatic electronic braking system. The plaintiffs sought to certify statewide classes under Civil Rule 23(b)(3), but the Court ruled that the classes did not meet the material requirements for certification. The ruling vacates the certification and remands for further proceedings.

Key Highlights:

The case involves ten statewide classes alleging defects in Nissan’s braking system.
The Court of Appeals determined that the requirements for class certification under Rule 23(b)(3) were not met.
Software updates by Nissan were found to be relevant in potentially differentiating the claims of the plaintiffs.
A rigorous analysis of the elements of each state law claim is required to determine whether a common question exists.
The district court is directed to consider Daubert standards for expert witness testimony.

Details of the Appeal

The plaintiffs, representing vehicle owners from ten states, claimed that the automatic electronic braking system installed in certain Nissan models was defective, occasionally triggering without reason. This defect allegedly caused sudden braking at locations such as railroad crossings, parking garages, and overpasses. Nissan began equipping its cars with these systems in 2016, and by 2017, some drivers reported “phantom activations.” The vehicles at issue include the 2017-2021 Rogue, Rogue Sport, Altima, and Kicks models, all of which use the ARS410 radar system.

In response to the reported issues, Nissan released two software updates, referred to as “S1” and “S2,” aimed at refining radar performance and reducing false activations. Despite these efforts, plaintiffs argued that the problem persisted, and they filed suit against Nissan, alleging breaches of warranty, fraud, and violations of consumer protection statutes.

The Court’s Reasoning

The Sixth Circuit Court of Appeals found that the district court failed to properly analyze whether common questions of law or fact existed across the ten classes, specifically given the variations in software versions installed in the cars. The software updates were a significant point of contention, as they potentially remedied the issues for some vehicles but not others, thus challenging the premise of a common defect across all affected cars.

The Court emphasized the need for an element-by-element assessment of each state’s claims, highlighting that not every class member experienced the alleged issues in the same manner. For instance, the elements of implied warranty and consumer fraud varied significantly by state, and an individualized inquiry was necessary to determine damages and liability.

Moreover, the Court directed that the district court must conduct a Daubert analysis on the expert testimony provided by the plaintiffs. This analysis is crucial for determining whether expert opinions are reliable and applicable to the claims at hand. The plaintiff’s expert, Steve Loudon, argued that the ARS410 radar was the root cause of the false braking activations. However, Nissan countered that Loudon lacked the qualifications to definitively diagnose the braking systems and failed to properly consider vehicles with updated software.

Implications and Next Steps

The Court vacated the class certification, sending the case back for further proceedings. Moving forward, the district court must undertake a more detailed examination of the claims, focusing on whether the class members share a common experience with the alleged defect and whether the plaintiffs’ expert testimony is admissible under Daubert standards.

This decision underscores the challenges of achieving class certification in cases involving complex technology and varied consumer experiences. The appellate ruling is a significant development in the ongoing litigation against Nissan, highlighting the need for precision and rigorous proof at the class certification stage.

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