Ford Loses Bid to Arbitrate Defective Transmission Claims

Ford Motor Co. waived its right to arbitrate and otherwise doesn’t have standing to invoke an arbitration provision in a case as part of a multi-district dispute over an allegedly faulty PowerShift transmission, a California federal court ruled.

Darice and Edward Wirth sued Ford and Fiesta Ford, Inc. over their leased 2014 Ford Fiesta. They allege warranty and misrepresentation claims against Ford, and a fraudulent repair claim against the dealership.

Ford argued it has standing to invoke the arbitration provision in the lease because it’s an affiliate of the finance company and holder, and it’s the intended beneficiary of the ...