Northern District Denies Song Beverly Act Protection to Corporate Motor Home Purchaser

In Aquair Ventures, LLC v. Gulf Stream Coach, Inc., 2009 WL 150963 (N.D.Cal. 2009), Judge Conti ruled on whether a corporate purchaser of a motor home who took delivery outside the state of Calfornia could obtain protection by the Song-Beverly Act.  As to the latter, Judge Conti said yes; as to the former, Judge Conti said no.  As to a purchaser who took delivery of the motor home outside California, Judge Conti held that Song-Beverly still applied:

The protections offered in the Act “apply only to vehicles sold in California.” Cummins, Inc. v.Super. Ct., 36 Cal.4th 478, 30 Cal.Rptr.3d 823, 115 P.3d 98 (2005). The parties do not dispute that Aquair signed the Contract in Santa Rosa, California, nor that Aquair took physical possession of the keys and the RV in Nevada.  . . . The court in [Gusse v. Damon Corp., 470 F.Supp.2d 1110, 1113 (C.D.Cal.2007)] noted that under California law, there is a presumption that a contract is a shipment contract, rather than a delivery contract. Id. at 1113; see also Wilson v. Brawn of Cal., Inc., 132 Cal.App.4th 549, 556, 33 Cal.Rptr.3d 769 (Ct.App.2005). The contract at issue here does not require delivery in Nevada or any other specific destination. As such, it is a shipment contract, and title passed from the Dealer to Aquair at the time the Dealer shipped the RV from California. The RV therefore falls under the Act as a good purchased in California.

However, Judge Conti held that the plaintiff was not entitled to protection under Song-Beverly:

Aquair may not bring suit under the Act. Because Aquair is not an individual, it is not a buyer for the purposes of the Act, and therefore may not bring suit over the RV, which it purchased for “personal, family, or household purposes.” Thus, Aquair may only maintain this action if it has fewer than five vehicles registered in California and if the vehicle that is the subject of the suit weighs less than 10,000 pounds. It is not disputed that the RV weighs over 32,000 pounds. Suddon Decl. ¶ 9, Ex. B. Aquair is therefore not entitled to bring suit over the RV under the Act.