N.J. Judge Denies VW Motion to Compel 3G Telematics Claims to Arbitration

U.S. District Judge Esther Salas for New Jersey in Newark denied without prejudice Volkswagen Group of America’s motions to compel the 3G telematics claims of five plaintiffs to arbitration and to dismiss their claims (see 2306200001), said her signed opinion Tuesday (docket 2:22-cv-06230). The denials without prejudice are pending “limited fact discovery on the issue of arbitrability,” said the opinion. The plaintiffs allege that VWGofA, distributor of VW and Audi vehicles, knew well in advance of AT&T’s decision to terminate its 3G wireless service, yet did nothing to modernize its in-vehicle telematics equipment and kept car-buying consumers in the dark about it. Because the affirmative defense of arbitrability isn't apparent on the face of the amended complaint, the motion to compel arbitration must be denied pending limited discovery, said Salas’ opinion. While it’s true that the amended complaint relies on violation of express and implied warranties, nowhere does it tie these claims to the terms of service or the arbitration agreements, it said. Salas will defer ruling on VWGofA’s separate motion requesting dismissal of the amended complaint for failure to state a claim until deciding, upon VWGofA’s motion after the close of discovery, whether the plaintiffs’ claims are subject to arbitration, it said.