Duncan v. Nissan North America, Inc.
United States District Court for the District of Massachusetts
305 F. Supp.3d 311 (2018)
Sarah Duncan and other consumers (plaintiffs) sued Nissan (defendant) in a class action over a plastic engine component that was supposed to last the car's lifetime but instead wore away, allegedly causing expensive engine damage and a safety hazard. The complaint alleged Nissan knew of the defect - having disclosed it to dealerships in technical bulletins - but concealed it from consumers and set the warranty at 36 months/36,000 miles, timed to expire before the defect typically became apparent. Nissan moved to dismiss the breach-of-warranty claims because all actual repairs occurred after the warranty period ended; the plaintiffs argued the component malfunctioned during the warranty period even though repairs came later, and that the time limit itself was unconscionable under the UCC.
Whether courts may treat time-limited warranties as unconscionable when the manufacturer knew about and concealed a defect that would not become apparent until after the warranty period expired.