— A Tesla ADAS (advanced driver assistance system) class action lawsuit is over for now after the judge ruled the plaintiffs agreed to arbitrate their claims when they purchased their vehicles.
One plaintiff did opt out of the arbitration agreement, but his claims against Tesla were also dismissed.
The Tesla self-driving class action lawsuit alleges Tesla lied about the capabilities of ADAS which includes Autopilot, Enhanced Autopilot and Full Self-Driving capability.
The Tesla ADAS lawsuit, now titled, In Re: Tesla Advanced Driver Assistance Systems Litigation, was consolidated from other ADAS class actions (examples are here and here).
The plaintiffs claim they were used as test engineers for technology that still doesn't provide what Tesla promised. And those owners assert they paid thousands of dollars extra for ADAS that still doesn't live up to Tesla's marketing.
Tesla allegedly made deceptive and misleading statements about ADAS, including how "ADAS technology was on the precipice of delivering fully self-driving cars, but Tesla has yet to deliver on such promises."
The plaintiffs further allege the ADAS is unsafe and has led to crashes, injuries and deaths.
Motion to Compel Arbitration
Tesla told Judge Haywood S. Gilliam, Jr. four of five plaintiffs entered into valid arbitration agreements when they purchased their Tesla vehicles. Therefore all their claims should be arbitrated and not as part of a class action lawsuit.
Tesla Agreement to Arbitrate
Please carefully read this provision, which applies to any dispute between you and Tesla, Inc. and its affiliates, (together “Tesla”).
If you have a concern or dispute, please send a written notice describing it and your desired resolution to resolutions@tesla.com.
If not resolved within 60 days, you agree that any dispute arising out of or relating to any aspect of the relationship between you and Tesla will not be decided by a judge or jury but instead by a single arbitrator in an arbitration administered by the American Arbitration Association (AAA) under its Consumer Arbitration Rules.
This includes claims arising before this Agreement, such as claims related to statements about our products. We will pay all AAA fees for any arbitration, which will be held in the city or county of your residence. To learn more about the Rules and how to begin an arbitration, you may call any AAA office or go to www.adr.org.
The arbitrator may only resolve disputes between you and Tesla, and may not consolidate claims without the consent of all parties. The arbitrator cannot hear clear or representative claims or request for relief on behalf of others purchasing or leasing Tesla vehicles. In other words, you and Tesla may bring claims against the other only in your or its individual capacity and not as a plaintiff or class member in any class or representative action.
If a court or arbitrator decides that any part of this agreement to arbitrate cannot be enforced as to a particular claim or relief or remedy, then that claim or remedy (and only that claim or remedy) must be brought in court and any other claims must be arbitrated.
If you prefer, you may instead take an individual dispute to small claims court.
You may opt out of arbitration within 30 days after signing this Agreement by sending a letter to [Tesla’s designated address] . . . .
According to the judge:
"The Federal Arbitration Act (“FAA”), 9 U.S.C. §§ 1 et seq., sets forth a policy favoring arbitration agreements and establishes that a written arbitration agreement is 'valid, irrevocable, and enforceable.'”
As for the one plaintiff who opted out when he purchased his vehicle, the judge dismissed his lawsuit claims because they are barred by the statutes of limitations.
However, the judge will allow the plaintiff to amend his claims if he chooses.
The Tesla ADAS lawsuit was filed by plaintiffs Briggs A. Matsko, Thomas J. Losavio, Brenda T. Broussard, Dominick Battiato and Christopher Mallow.
The Tesla ADAS lawsuit was filed in the U.S. District Court for the Northern District of California: In Re: Tesla Advanced Driver Assistance Systems Litigation.
The plaintiffs are represented by Cotchett, Pitre & McCarthy LLP, Bottini & Bottini, Inc., and Casey Gerry Schenk Francavilla Blatt & Penfield LLP.
