Ninth Circuit Bars RV Claim under California’s Song-Beverly Act Because the Vehicle was Delivered Outside California

In Galicia v. Country Coach, Inc. 2009 WL 1144224 (9^th Cir. 2009), an unpublished opinion, the Court of Appeals for the Ninth Circuit held that deliver of an RV outside the state of California prevented application of the Song-Beverly Consumer Warranty Act to the transaction.

The district court did not err in granting McMahon’s summary judgment. The Galicias‘ Song-Beverly Consumer Warranty Act (“ Song-Beverly”) claim against McMahon’s could proceed only if McMahon’s sold the Galiciasa motorhome in California. Cal.Civ.Code § 1793.2(a)(1)(A). A “sale” occurs under Californialaw at the time title to the goods passes from the seller to the buyer. Cal. Civ.Code § 1791(n). California Commercial Code Section 2401(2) provides the default rules for passage of title-“[u]nless otherwise explicitly agreed[,] title passes to the buyer at the time and place at which the seller completes his performance with reference to the physical delivery of the goods … even though a document of title is to be delivered at a different time or place.”See also Cal. State Electronics Ass’n v. Zeos Int’l LTD., 41 Cal.App. 4th 1270, 1276 (Cal Ct.App.1996) (Section 2401 determines where title passes for Song-Beverly purposes). If the pur-chase/sales contract requires or authorizes the seller to send the goods to the buyer, but does not require the seller to deliver them at a specific destination, title passes to the buyer at the time and place of shipment. Cal. Comm.Code § 2401(2)(a). This type of contract is referred to as a “shipment contract.” If the contract requires delivery at a specific destination, however, title passes on tender at that destination. Cal. Comm.Code § 2401(2)(b). This is called a “delivery” or “destination” contract. The record indicates that McMahon’s and the Galiciasentered into a destination contract. The parties agreed that McMahon’s would deliver the motorhome to the Galicias at the Ehernberg, Arizona “Flying J”-a specific location outside California-preventing the sale from being a California sale. Song-Beverly therefore does not apply.