Judge: Douglas W. Stern, Case: 23STCV23402, Date: 2023-12-26 Tentative Ruling

Case Number: 23STCV23402    Hearing Date: December 26, 2023    Dept: 68

Donald Wayne Stephenson vs. Mercedes-Benz USA, LLC, et al., 23STCV23402

MOVING PARTY: Defendant Mercedes-Benz USA, LLC

RESP. PARTY:  Plaintiff Donald Wayne Stephenson

MOTION TO COMPEL ARBITRATION

On September 27, 2023, Plaintiff Donald Wayne Stephenson (Plaintiff) filed the instant action against Defendant Mercedes-Benz USA, LLC (Defendant) and another Defendant for causes of action related to breach of the Song-Beverly Warranty Act and negligent repair of the vehicle.  Plaintiff’s Song-Beverly claims arise out of the written warranty provided by Mercedes-Benz.  The written warranty provided by Mercedes-Benz does not contain an arbitration provision.

The dealer that sold the vehicle to Plaintiff entered into a retail sales contract with the Plaintiff.  It expressly disavowed any warranties.  (Paragraph 4.)  But it contained an arbitration provision.  So, having chosen to NOT include an arbitration provision in the warranty that it provided to Plaintiff, Merecedes nonetheless wants to compel Plaintiff to arbitrate the warranty claims that arise ONLY from the Mercedes-Benz warranty.  The retail sales contract gives rise to no warranties.  There is no claim that any aspect of the sales contract has been breached.  Its relevance is only insofar as a sale is germane to the application of Song-Beverly.

On November 9, 2023, Defendant Mercedes-Benz filed the instant motion to compel arbitration and stay the action. Plaintiff opposes.

Felisilda v. FCA US LLC (2020) 53 Cal.App.5th 640 versus Ochoa v. Ford Motor Company – Ford Motor Warranty Cases (2023) 306 Cal.Rptr.3d 611.  This Court believes that Ochoa is the better reasoned decision and chooses to follow it, not Felisilda.

Mercedes-Benz, a non-party to the agreement that contains an arbitration provision, is not entitled to force the Plaintiff to arbitrate a claim that has nothing to do with the sales agreement and arises solely from the Mercedes-Benz warranty.  There is nothing “equitable” in the suggested result of forcing a party to arbitrate a dispute that does not arise under the contract with the arbitration provision.  There is no basis for imposing an “estoppel” on a party that is not seeking any rights or remedies under the contract that contains the arbitration provision.

Motion to Compel Arbitration DENIED.