A class action lawsuit against General Motors over cracked and deformed C7 Chevy Corvette wheels continues to progress, with the latest development resulting in the claims of one plaintiff going to arbitration.
According to a recent report from Car Complaints, GM argued that the claims of plaintiff Derrol Turner should be sent to arbitration, as the plaintiff agreed to arbitration when he purchased his Chevy Corvette Grand Sport at Crews Chevrolet in South Carolina back in 2016. GM told Judge Bernard A. Friedman that the contract contains an arbitration provision which covers claims regarding the “purchase, lease, or condition of the vehicle.”
Meanwhile, the plaintiff argued that the agreement was with the GM dealer, rather than General Motors, and thus GM could not compel arbitration. However, although GM admits it is not a signatory to the purchase agreement and arbitration provision, the automaker stated that it is entitled to enforce the agreement under the principle of equitable estoppel, as the plaintiff would not hold claims against GM had he not entered into the agreement to buy his new Corvette. GM also argued that the purchase agreement delegates questions over the enforceability and scope of the arbitration to the arbitrator, which means the judge could not resolve the question regarding arbitration.
Judge Friedman subsequently ruled that GM’s motion to compel arbitration for Turner’s claims would be granted.
As GM Authority covered previously, GM is currently facing a class action lawsuit in which plaintiffs claim that units of the 2015- through 2019-model-year Chevy Corvette Z06 and 2017- through 2019-model-year Chevy Corvette Grand Sport are equipped with wheels that can crack and lose strength, thus making the wheels more prone to failure. Plaintiffs claim that GM allegedly concealed the defects in the associated Corvette wheels and systematically denied warranty coverage, thus forcing plaintiffs to pay thousands of dollars in repairs, or purchase replacement OEM wheels with the same defects as the original units.