— A BMW 3G class action lawsuit is over after a federal judge ruled the plaintiff signed a binding arbitration agreement.
New Jersey plaintiff Peter Grayson purchased a new 2014 BMW 428i xDrive Coupe equipped with Connected Drive and BMW Assist features.
The telematics control unit allowed the BMW to connect to the internet for “features such as door unlock, enhanced roadside assistance, accident management and message dictation.”
The system uses 3G wireless service which was phased out in 2022, with 4G and 5G replacing outdated 3G wireless. But the class action lawsuit alleges the 3G unit was not capable of being retrofitted to work with more advanced wireless services.
According to the BMW 3G lawsuit, the plaintiff did not get the benefit of his bargain because he believed his car's telematics unit would work for the life of the vehicle.
The plaintiff contends BMW deceives customers and vehicle owners suffer "substantial injury in the form of price premiums and overpayments for products and diminished resale value and loss of [T]elematics benefits."
When the plaintiff filed the October 2022 BMW 3G class action lawsuit, it included owners of all BMW vehicles equipped with 3G wireless units.
BMW 3G Class Action Lawsuit Dismissed
BMW filed a motion to dismiss the class action and a motion to compel arbitration. According to the automaker, the plaintiff signed a "BMW Assist Subscriber Agreement Contract" which includes an agreement to arbitrate disputes.
The plaintiff doesn't disagree with the validity of the arbitration clause, but he does say the judge should ignore the clause because the BMW "Telematics Unit is a physical component of the vehicle and is not covered by the Agreement."
However, Judge Susan D. Wigenton disagreed and found the plaintiff has not shown with “positive assurance” that his claims are outside the scope of the arbitration agreement.
The judge found the class action lawsuit certainly pertains to the BMW telematics unit, but also pertains to the loss of service due to the "inability of the Telematics Unit to adapt to upgraded wireless service."
"As such, the facts and allegations implicate the Service Agreement [which contains the arbitration clause], as the loss of service is inextricably intertwined throughout the allegations. Plaintiff’s claims are thus within the scope of the arbitration agreement." — Judge Wigenton
The judge granted BMW's motion to dismiss the 3G class action lawsuit and refer the matter to arbitration.
The BMG 3G class action lawsuit was filed in the U.S. District Court for the District of New Jersey: Peter Grayson v. BMW of North America LLC, et al.
The plaintiff is represented by Squitieri & Fearon, LLP.
