ST. LOUIS – A federal judge recently granted a motion by Ryder Systems to dismiss a suit brought against it by business that sells and leases commercial trucks.
In his ruling filed Oct. 15 in the U.S. District Court for the Eastern District of Missouri, U.S. District Judge John A. Ross held the plaintiff, The General LLC, a Missouri business engaged in interstate shipping, failed to meet its burden of establishing a prima facie case that federal courts in Missouri may properly assert personal jurisdiction over the defendant, Ryder Systems.
The General filed suit earlier this year in St. Louis County Circuit Court against Ryder Systems, based in Florida, claiming fraudulent misrepresentation, fraudulent omission and breach of warranty involving its purchase of a 2008 Columbia 120 truck from Ryder Vehicle Sales (RVS), a Ryder Systems subsidiary, in 2013 for $39,195.
Shortly after the purchase, the truck experienced a number of mechanical issues, including problems with the engine, axle, injector, belt and tires, court filings said.
The lawsuit further claims that Ryder, through RVS, represented that the truck was of "road ready quality," having undergone a 140-point inspection. Ryder allegedly failed to disclose that the truck had been in an accident and/or had a bent axle and that it also represented that it was free from defect and then refused to repair what was promised under a sales contract.
Ryder removed to the suit to the district court on March 22 on the basis of diversity jurisdiction and then moved to dismiss for lack of personal jurisdiction on July 3.
In court filings, Ryder argued the district court "lacked personal jurisdiction over it because it was not a party to the sales transaction and had no contacts with Missouri regarding the sale or warranting of the truck at issue."
Ross held that "the exercise of personal jurisdiction over Ryder is not consistent with due process."