United States District Court, S.D. Indiana, Indianapolis Division
Jane Magnus-Stinson, Chief Judge United States District
Phillip Carroll purchased a BMW 7 Series (the
“Vehicle”) in 2010 for $107, 808.40. On
January 22, 2019, Mr. Carroll filed suit against Defendants
BMW of North America, LLC (“BMW”) and
Bavarian Motor Works seeking damages related to the
Vehicle's excessive consumption of engine oil and
Defendants' failure to honor the terms of their warranty
in violation of the Magnuson-Moss Warranty Act and various
Indiana statutes. On March 12, 2019, BMW filed a Motion to
Dismiss pursuant to Federal Rule of Civil Procedure 12(b)(1),
and that Motion is now ripe for the Court's review.
purpose of a motion to dismiss under Federal Rule of Civil
Procedure 12(b)(1) is to test the sufficiency of the
complaint, not to decide the merits of the case. Rule
12(b)(1) requires dismissal of claims over which the federal
court lacks subject-matter jurisdiction. Jurisdiction is the
“power to decide, ” Boley v. Colvin, 761
F.3d 803, 805 (7th Cir. 2014), and federal courts may only
decide claims that fall within both a statutory grant of
authority and the Constitution's limits on the judiciary.
In re Chicago, R.I. & P.R. Co., 794 F.2d 1182,
1188 (7th Cir. 1986).
court deciding a Rule 12(b)(1) motion may accept the truth of
the allegations in the complaint, it should look beyond the
complaint's jurisdictional allegations and view whatever
evidence has been submitted on the issue to determine whether
subject matter jurisdiction exists. Ciarpaglini v.
Norwood, 817 F.3d 541, 543 (7th Cir. 2016). The party
asserting the existence of subject matter jurisdiction bears
the burden of demonstrating by competent proof that such
jurisdiction in fact exists. See Thomas v.
Gaskill, 315 U.S. 442, 446 (1942); see also
Silha v. ACT, Inc., 807 F.3d 169, 174 (7th Cir.
2015). A Rule 12(b)(1) motion may be raised at any time, by
either party or by the Court sua sponte.
See Fed. R. Civ. P. 12(h).
following facts are drawn from Mr. Carroll's Complaint,
[Filing No. 1], and are accepted as true for the
purpose of resolving BMW's Motion.
April 15, 2010, Phillip Carroll purchased the “Vehicle
for $107, 808.40 from one of Defendants' authorized
dealers (the “Dealer”). [Filing No.
1 at 3.] When Mr. Carroll purchased the Vehicle,
Defendants made representations as to its performance and
quality and assured Mr. Carroll that the Vehicle was free
from defects of workmanship. [Filing No. 1 at 4.]
The Vehicle is equipped with a V8, twin-turbocharged engine,
known as the N63 engine. [Filing No. 1 at 5.] At the
time of purchase, the Vehicle's recommended oil service
interval was the earlier of 15, 000 miles or two years.
[Filing No. 1 at 10.]
a few years of purchasing the Vehicle, Mr. Carroll observed
that it consumed excessive engine oil. [Filing No. 1 at
3.] At some point during the warranty period, the
“add oil” light illuminated on the Vehicle's
dash, at which point Mr. Carroll notified the Dealer.
[Filing No. 1 at 3.] In response, the Dealer told
Mr. Carroll that it was normal for the Vehicle's
high-performance engine to burn oil, and although the Dealer
did not offer any repairs for the Vehicle's excessive
consumption of engine oil, the Dealer changed the
Vehicle's oil at Mr. Carroll's request. [Filing
No. 1 at 3.]
the warranty period, Mr. Carroll took the Vehicle to the
Dealer for an oil change every 3, 000 miles or whenever the
add oil light was illuminated, whichever occurred first.
[Filing No. 1 at 4.] After the warranty period, Mr.
Carroll added one quart of oil to the Vehicle every 1, 100
miles and he now adds one quart of oil every 250 miles.
[Filing No. 1 at 4.]
September 2018, Mr. Carroll took the Vehicle to the Dealer,
again complaining about its excessive oil consumption.
[Filing No. 1 at 4.] The Dealer conducted an
analysis and performed an oil change. [Filing No. 1 at
4.] Thereafter, Mr. Carroll drove the Vehicle 800 miles
when smoke began emitting from the Vehicle's exhaust and
the add oil light illuminated. [Filing No. 1 at 4.]
Mr. Carroll purchased the Vehicle, N63 engines have become
widely known for consuming excessive amounts of engine oil
and requiring frequent engine repairs. [Filing No. 1at 6.] Defendants have issued several technical
service bulletins to address complaints of excessive oil
consumption and other problems related to the ...