A federal court ruled the automaker cannot yet move consumer claims out of court.
Newark, NJ – A federal judge has denied Jaguar Land Rover North America’s attempt to force a proposed class action into arbitration, allowing a lawsuit over alleged brake defects in luxury SUVs to proceed in court for now.
The case was brought by three plaintiffs from New York, California, and Illinois who claim 2023 Land Rover Range Rover vehicles were sold with defective braking systems that led to costly repairs. The lawsuit seeks relief on behalf of similarly situated consumers nationwide.
Jaguar Land Rover argued that the dispute should be resolved through binding arbitration based on provisions included in its New Vehicle Limited Warranty.
Arbitration clause dispute at center of ruling
The company maintained that customers agreed to arbitration by using their vehicles, accepting warranty repairs, and not opting out within a specified timeframe. The warranty states disputes related to vehicle performance, repairs, or warranties “shall be resolved by binding arbitration at either your or our election.”
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Plaintiffs pushed back, arguing they were never properly informed of the arbitration provision and therefore could not have agreed to it.
Key Points
- Judge denies Jaguar Land Rover’s motion to compel arbitration
- Lawsuit alleges brake defects in 2023 Range Rover models
- Plaintiffs claim they were not given notice of arbitration terms
Case to continue as class action moves forward
U.S. District Judge Claire C. Cecchi denied the motion without prejudice, meaning Jaguar Land Rover may attempt to raise the arbitration argument again later in the case.
The lawsuit includes multiple claims under federal and state laws, including the Magnuson-Moss Warranty Act and various consumer protection statutes across several states. Plaintiffs allege they were forced to pay for repairs tied to what they describe as inherent defects in the vehicles.
The court decided the motion without oral argument, determining that the written submissions were sufficient to resolve the issue at this stage.
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