Jason Counts v. General Motors, LLC
Court
Sixth Circuit Court of Appeals
Decided
June 6, 2025
Jurisdiction
F
Practice Areas
Case Summary
RECOMMENDED FOR PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 25a0150p.06 UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT ┐ JASON COUNTS; DONALD KLEIN; OSCAR ZAMORA; │ JASON SILVEUS; JOHN MISKELLY; THOMAS HAYDUK; │ JOSHUA RODRIGUEZ; BASSAM HIRMIZ; CHRISTOPHER │ HEMBERGER; DEREK LONG, individually and on behalf > No. 24-1139 of themselves and all others similarly situated, │ Plaintiffs-Appellants, │ │ │ v. │ │ GENERAL MOTORS, LLC; ROBERT BOSCH LLC, │ Defendants-Appellees. │ ┘ Appeal from the United States District Court for the Eastern District of Michigan at Bay City. No. 1:16-cv-12541—Thomas L. Ludington, District Judge. Argued: March 18, 2025 Decided and Filed: June 6, 2025 Before: GRIFFIN, KETHLEDGE, and BUSH, Circuit Judges. _________________ COUNSEL ARGUED: Garth Wojtanowicz, HAGENS BERMAN SOBOL SHAPIRO, LLP, Seattle, Washington, for Appellants. Jay P. Lefkowitz, KIRKLAND & ELLIS LLP, New York, New York, for Appellee General Motors. Patrick Swiber, CLEARY, GOTTLIEB, STEEN & HAMILTON, LLP, New York, New York, for Appellee Robert Bosch LLC. ON BRIEF: Garth Wojtanowicz, Steve W. Berman, HAGENS BERMAN SOBOL SHAPIRO, LLP, Seattle, Washington, Christopher A. Seeger, SEEGER WEISS LLP, Ridgefield Park, New Jersey, Shauna B. Itri, SEEGER WEISS LLP, Philadelphia, Pennsylvania, James E. Cecchi, James A. O’Brien III, CARELLA, BRYNE, CECCHI, OLSTEIN, BRODY & AGNELLO, P.C., Roseland, New Jersey, for Appellants. Jay P. Lefkowitz, KIRKLAND & ELLIS LLP, New York, New York, Renee D. Smith, Jeffrey S. Bramson, Cole T. Carter, KIRKLAND & ELLIS LLP, Chicago, Illinois, for Appellee General Motors. Abena A. Mainoo, Carmine D. Boccuzzi Jr., CLEARY, GOTTLIEB, STEEN & HAMILTON, LLP, New York, New York, Matthew D. No. 24-1139 Counts, et al. v. General Motors, LLC, et al. Page 2 Slater, CLEARY GOTTLIEB STEEN & HAMILTON LLP, Washington, D.C., William R. Jansen, Jonathan E. Lauderbach, WARNER NORCROSS & JUDD LLP, Detroit, Michigan, for Appellee Robert Bosch LLC. Jonathan S. Martel, ARNOLD & PORTER KAYE SCHOLER LLP, San Francisco, California, for Amici Curiae. _________________ OPINION _________________ KETHLEDGE, Circuit Judge. The plaintiffs appeal the district court’s judgment in favor of the defendants as to their claims that GM and Bosch misled consumers regarding the emissions generated by certain Chevrolet Cruze vehicles. We affirm in part, vacate in part, and remand for further proceedings consistent with this opinion. I. A. New motor vehicles generally cannot be sold in the United States without a “certificate of conformity,” which is the EPA’s certification that a vehicle complies with all federal emissions standards. See 42 U.S.C. §§ 7522(a)(1), 7525(a); 40 C.F.R. § 86.1854-12(a)(1). As part of the certification process, manufacturers must disclose whether a vehicle has any “auxiliary emission control devices” (AECDs), which for various reasons can increase vehicle emissions under certain operating circumstances. See 42 U.S.C. § 7525; 40 C.F.R. §§ 86.127-12, 86.1844- 01(d)(11). AECDs use software to sense conditions like temperature, speed, or engine RPMs “for the purpose of activating, modulating, delaying, or deactivating the operation of any part of the emission control system.” 40 C.F.R. § 86.082-2. A manufacturer’s disclosures must provide “a detailed justification of each AECD that results in a reduction in the effectiveness of the emission control system, and rationale for why it is not a defeat device.” 40 C.F.R. § 86.1844- 01(d)(11). A “defeat device,” in turn, is an AECD that unjustifiably “reduces the effectiveness of the emission control system under conditions which may reasonably be expect
Case Details
Case Details
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Status
Decided
Date Decided
June 6, 2025
Jurisdiction
F
Court Type
appellate
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Case Summary
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Case Overview
In Jason Counts v. General Motors, LLC, the plaintiffs appeal a district court ruling favoring GM and Bosch regarding emissions fraud claims related to Chevrolet Cruze vehicles. The case, decided by the Court of Appeals for the Sixth Circuit on June 6, 2025, addresses significant legal questions surrounding emissions standards and consumer protection.
Legal Issues
The case presents several critical legal issues:
- Fraud claims regarding misleading emissions information: Plaintiffs allege GM and Bosch misled consumers about emissions from Chevrolet Cruze vehicles.
- Preemption of claims by the Clean Air Act: Certain fraud claims referencing EPA standards were dismissed as preempted.
- Definition and implications of defeat devices: Claims hinge on whether vehicles contained defeat devices that manipulated emissions controls.
- Application of the indirect-purchaser rule to RICO claims: The plaintiffs' RICO claim was dismissed based on their status as indirect purchasers.
Factual Background
- Key Facts:
- GM disclosed 90 pages of information about Auxiliary Emission Control Devices (AECDs) in Cruze vehicles, critical for determining compliance with EPA standards.
- Plaintiffs allege that Cruzes emit NOx levels higher than advertised, underpinning their fraud claims.
- The plaintiffs purchased diesel Cruzes from dealers, not directly from GM, which influenced the dismissal of RICO claims.
- The case has been pending for over eight years, indicating the need for resolution.
Court's Analysis
The court's reasoning involved several pivotal points:
- Preemption under the Clean Air Act: The court found that claims based on EPA standards were preempted, leading to the dismissal of certain fraud claims. This aligns with the Clean Air Act (42 U.S.C. §§ 7522(a)(1), 7525(a); 40 C.F.R. § 86.1854-12(a)(1)).
- Puffery in advertising: GM's advertising claims were deemed puffery and nonactionable, preventing reliance on these claims for fraud.
- Defeat devices: The existence of genuine issues of material fact regarding defeat devices allowed some fraud claims to proceed, as these devices are illegal under EPA regulations.
- RICO Claims: The court determined that the plaintiffs' claims could not proceed without implicating EPA determinations, leading to the dismissal of RICO claims based on the indirect-purchaser rule.
Holdings and Decision
The court's rulings included:
- Affirmed in part, vacated in part, and remanded for further proceedings on the fraud claims related to the alleged defeat devices.
- The plaintiffs' remaining fraud claims are preempted by federal law, specifically those challenging EPA determinations.
- The RICO claims were dismissed based on the indirect-purchaser rule.
Legal Precedents
The court cited several important precedents:
- Counts v. General Motors, LLC, 237 F. Supp. 3d 572 (E.D. Mich. 2017): Addressed preemption of claims under the Clean Air Act.
- Counts v. General Motors, LLC, 606 F. Supp. 3d 678 (E.D. Mich. 2022): Determined plausibility of consumer expectations regarding emissions.
- In re Ford Motor Company F-150 and Ranger Truck Fuel Economy Marketing and Sales Practices Litigation, 65 F.4th 851 (6th Cir. 2023): Established grounds for preemption of state law claims that challenge EPA figures.
- Fenner v. General Motors, LLC, 113 F.4th 585 (6th Cir. 2024): Addressed the applicability of the indirect-purchaser rule and the preemption of emissions claims.
Practical Implications
This case highlights the complexities of environmental law, consumer protection, and fraud law. It underscores the limitations imposed by federal regulations on state law claims, particularly in the context of emissions fraud. Legal practitioners should note the significance of preemption and the indirect-purchaser rule when advising clients in similar cases. The outcome may influence future litigation involving emissions standards and consumer rights, particularly in the automotive industry.
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Case Details
Legal case information
Status
Decided
Date Decided
June 6, 2025
Jurisdiction
F
Court Type
appellate
Legal Significance
Case importance metrics
Metadata
Additional information
Quick Actions
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