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Segal McCambridge Shareholder Tony Sbarra recently successfully defended Porsche Cars North America (“PCNA”) in a warranty arbitration in Connecticut.
In the matter of Malitsky v. PCNA, CAP-Motors, Case 95-250020, the claimant alleged the engine of his 2022 Porsche Panamera overheated while driving. When the vehicle was inspected at the dealer, catastrophic engine damage was discovered—so much so that a complete engine replacement was required. At the time, the vehicle was less than 3 years old and had been driven for approximately 48,000 miles. Accordingly, it was within the PCNA Limited Warranty period. The claimant sought an engine replacement from PCNA under the warranty.
The Panamera was equipped with instrument cluster warnings that communicated high oil and coolant temperatures via warning lights and written dashboard messages. In addition, the vehicle was equipped with a DME system (similar to a “black box”) which recorded minute-by-minute details about the vehicle’s operation. PCNA determined from these records that the claimant had driven the vehicle for approximately 90 minutes at highway speeds after receiving multiple warnings that the oil and coolant temperatures were too high, and that this had resulted in the oil and coolant temperatures exceeding 300⁰. PCNA took the position that the claimant’s operation of the vehicle constituted “abuse or neglect,” which voided the Limited Warranty.
At the hearing, PCNA presented the testimony of the Service Technician for the Porsche dealership in question and of PCNA’s Field Technical Manager, both of whom testified about the claimant’s neglect, the warning system and its functions, the DME results, and the resulting engine damage. The claimant testified that although he noticed some warnings, they were not as detailed and explicit as PCNA claimed and that he may have misunderstood some of them. The arbitrator was not persuaded and found that PCNA had no obligation to either replace the engine or repurchase the vehicle.
This outcome underscores the strength of the Segal McCambridge automotive litigation team, which continues to deliver favorable results in high-stakes warranty disputes. Led by Tony Sbarra, the team’s strategic presentation of technical evidence and expert testimony was instrumental in securing a full defense award for PCNA.
