United States District Court, N.D. California
ORDER GRANTING DEFENDANT'S MOTION TO COMPEL
ARBITRATION AND STAY ALL PROCEEDINGS, Re: Dkt. No.
A WESTMORE UNITED STATES MAGISTRATE JUDGE
24, 2019, Defendant BMW of North America, LLC filed a motion
to compel arbitration and stay all proceedings.
review of the moving papers, the Court finds this matter
suitable for resolution without oral argument pursuant to
Civil Local Rule 7-1(b), and, for the reasons set forth
below, GRANTS Defendant's motion to compel arbitration.
12, 2017, Plaintiff leased a BMW M3, serial number
WBS8M9C50H5G42179 (“Subject Vehicle”), from Peter
Pan BMW (“the Dealer”). (Compl., Dkt. No. 1-1 at
2-3.) Plaintiff alleges that, “in
connection with the lease, Plaintiff received the express
warranty of the manufacturer in that the written statement of
Defendants…. accompanied the product.” (Compl.,
3:11-14.) Plaintiff alleges that Defendant BMW of North
America, LLC “failed to conform the vehicle to their
express warranty within a reasonable number of attempts or
within 30 days.” (Compl., 4:8-10.) Plaintiff alleges
violations of express and implied warranties under the Song-
Beverly Consumer Warranty Act. Plaintiff initially sued both
Defendant and the Dealer, but subsequently dismissed the
Dealer before this case was removed to federal court.
(Dismissal, Decl. of Reuthana Tap, “Tap Decl., ”
Dkt. No. 26-1 ¶ 2, Ex. A.)
Lease Agreement is a 7-page document titled “BMW
Financial Services NA, LLC - Lease Agreement Motor Vehicle
Lease Agreement (Closed End) - California.” (Lease
Agreement, RJN, Dkt. No. 20, Ex. A at 1.) The Lease Agreement
states that it “is entered into between the lessee and
… and the lessor (“Lessor”) and that
“BMW FS will administer this Lease on behalf of itself
or any assignee.” (Lease Agreement at 1.) The Lease
Agreement contains the following arbitration clause:
38. ARBITRATION CLAUSE
PLEASE REVIEW - IMPORTANT - AFFECTS YOUR LEGAL RIGHTS.
NOTICE: Either you or I may choose to have any dispute
between us decided by arbitration and not in a court or by
* * * *
“Claim” broadly means any claim, dispute or
controversy, whether in contract, tort, statute or otherwise,
whether preexisting, present or future, between me and you or
your employees, officers, directors, affiliates, successors
or assigns, or between me and any third parties if I assert a
Claim against such parties in connection with a Claim I
assert against you, which arises out of or relates to my
credit application, lease, purchase or condition of this
Vehicle (including any such relationship with third parties
who do not sign this Lease).
* * * *
This Lease involves interstate commerce and this Arbitration
Clause and any arbitration hereunder shall be governed by the
Federal Arbitration Act, 9 U.S.C. § 1 et seq.
(“FAA”) and not by any state law concerning
(Lease Agreement at 6.) Plaintiff signed the lease agreement,
which contained the arbitration clause, on May 12, 2017.
(Lease Agreement at 7.) The Lease Agreement further provides
that “‘Assignee' refers to BMW Financial
Services NA, LLC” (“BMW FS”).” (Lease
Agreement at 1.) Defendant is a manager of BMW FS. (RJN, Ex.
Plaintiff presumably experienced problems with the Subject
Vehicle, and filed this lawsuit on November 27, 2018.
(See Compl. at 3.)
24, 2019, Defendant filed a motion to compel arbitration.
(Def.'s Mot., Dkt. No. 19). On July 8, 2019, Plaintiff
filed his opposition. (Pl.'s Opp'n, Dkt. No. 25.) On
July 15, ...