— A Fiat Chrysler key fob programming tool lawsuit will continue after a federal judge denied Chrysler's motion to compel arbitration.
In addition, the judge denied FCA's motion to dismiss the theft class action lawsuit.
According to the FCA key fob programming tool lawsuit, millions of 2012-2024 Alfa Romeo, Fiat, Chrysler, Jeep, Dodge, and Ram vehicles equipped with Sentry Key Engine Immobilizer Systems (SKIS) and push-button ignition systems are defective.
The class action says the vehicles are defective because FCA failed to warn customers about the risk of theft from criminals breaking the windows and illegally using devices to start the vehicles.
The theft lawsuit also alleges the vehicles are defective because "the anti-theft and ignition systems can easily be bypassed by novice thieves and fail to comply with Federal and industry safety standards."
Customers contend Chrysler concealed the key fob programming "defects," and they believed the vehicles couldn't be stolen with the keys removed from the vehicle, the windows closed and the vehicles locked.
Several of the vehicle owners who filed the class action lawsuit do not claim their vehicles were ever stolen or that anyone tried to steal them. But the judge says it doesn't matter because the plaintiffs complain they overpaid for their vehicles because it's possible someone could steal the vehicles.
FCA's arguments are fairly simple. The automaker says all the vehicles exceeded or met all federal safety standards when they were first sold. And it's allegedly not the fault of Chrysler if a criminal breaks out a window and uses a key programmer in an illegal way to illegally steal a vehicle.
Chrysler filed a motion to compel arbitration for a group of plaintiffs who did not voluntarily dismiss their claims, and those plaintiffs purchased vehicles built in 2020 and later.
In its motion to compel arbitration, Chrysler provided the judge evidence the vehicles came with written warranties which are located in warranty booklets. And included in those booklets are the arbitration agreements which require claims to be presented to an arbitrator, not through a class action lawsuit.
The FCA arbitration agreement says:
"Please carefully read this voluntary binding arbitration provision, which applies to any dispute between you and FCA US LLC and its affiliates[.] . . . [Y]ou agree that any dispute arising out of or relating to any aspect of the relationship between you and FCA US LLC will not be decided by a judge or jury but instead a single arbitration administered by the American Arbitration Association (AAA) under its Consumer Arbitration Rules in effect at the time you signed the Agreement to Arbitrate. . . . You may opt out of arbitration within 30 days of taking delivery of the vehicle and signing the Arbitration Acknowledgement Form at the dealer. To opt out of the binding program, send a letter to FCA US LLC[.] . . . If you do not opt out, then this agreement to arbitrate is binding."
According to the key fob lawsuit, the plaintiffs do not dispute the warranty booklet contains the arbitration agreement. But those vehicle owners argue they did not receive copies of the warranty booklets.
Vehicle owners further complain they were not provided with the booklets before or during their transactions. The class action also alleges they didn't even know about the arbitration agreements and never agreed to the provisions.
In the real world a "fact" is typically something backed up by more than allegations, but in the court system a fact can be a simple claim. In this case, the plaintiffs claim they were "injured" because they overpaid for their Chrysler vehicles.
"Taking all of Plaintiffs’ facts as true, the Court finds that Plaintiffs have demonstrated an injury in fact and have satisfied the first element to establish standing. Plaintiffs rest their claim of injury on overpayment at the point of purchase, so all Plaintiffs who made a purchase under these facts experienced an injury." — Judge Linda V. Parker
And according to the judge:
"Given that the present matter is at the pleading stage, the Court will view all facts alleged in the Complaint as true, and Plaintiffs must present sufficient facts for the Court to determine that they have plausibly alleged standing. Taking Plaintiffs’ facts as true, Plaintiffs have plausibly alleged a theory of overpayment."
Judge Parker denied FCA's motion to compel arbitration and denied the automaker's motion to dismiss the theft lawsuit.
The Chrysler key fob programming theft lawsuit was filed in the U.S. District Court for the Eastern Division of Michigan: Ivy Stryker et al., v. FCA US LLC, et al.
The plaintiffs are represented by the Simon Law Firm, P.C., Berardi and Associates LLC, Fegan Scott LLC, Gray Ritter Graham, and Olsman MacKenzie Peacock.