Carvana Class-Action Lawsuit
Carvana Class-Action Lawsuit
Carvana Class-Action Lawsuit
DANA JENNINGS
And
JOSEPH A. FURLONG,
Plaintiffs,
v.
CARVANA, LLC
JURY TRIAL DEMANDED
Defendant.
I. INTRODUCTION
This is a consumer protection action brought to redress and restrain common law violations
as well as other violations under the Pennsylvania Unfair and Deceptive Trade Practices Act against
a national used car dealer for its delay in permanently transferring car titles for months and months
which it had contractually represented to hold and agreed to transfer. As a result, consumers are often
unable to legally drive the cars they purchased because they cannot timely register the car or purchase
adequate insurance coverage. In addition, Carvana’s failure to timely register cars as it promised and
received money to do – sometimes for a period exceeding two (2) years - causes consumers to be
questioned and sometimes arrested by law enforcement while driving the temporarily registered cars.
Rather than correct its routine business practice when confronted by its consumer customers,
Carvana has resorted to a myriad of dubious excuses for its dilatory conduct including blaming
1
Attached hereto as Exhibit 1 is a comparison copy of the changes made from the original
complaint.
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 2 of 34
COVID and administrative logjams caused by state Departments of motor vehicle administration and
its third-party vendors to whom Carvana sub-contracts the registration process post-sale. Other used
car dealers have no such problems and Carvana’s conduct not only harms the Plaintiffs and similar
consumers but also harms Carvana’s competitors who are at a competitive disadvantage for having
complied with their promises and the law to properly register cars they have sold while Carvana’s
II. PARTIES
conducting business nationally and in the Commonwealth of Pennsylvania and in the County of
Philadelphia. CARVANA is also a licensed used car dealer required to comply with the laws of this
Commonwealth.
4. Based upon the representations of CARVANA when this action was removed, the
Court has jurisdiction of this matter pursuant to general diversity under 28 U.S.C. § 1332 and also
pursuant to the Class Action Fairness Act, 28 U.S.C. § 1332(d), 1453 (“CAFA”). Doc. 1. The Court
may also exercise supplemental jurisdiction over the claims presented pursuant to 28 U.S.C. § 1367.
Should it later be determined that CARVANA’s jurisdictional grounds for removal were in error, this
action shall be remanded to the state court. 28 U.S.C. § 1447 (“If at any time before final judgment
it appears that the district court lacks subject matter jurisdiction, the case shall be remanded.”).
2
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 3 of 34
5. This Court also has jurisdiction asserted for the claims herein because CARVANA
transacts business, performs work in, or provide services in the Commonwealth of Pennsylvania
and Philadelphia County in relation to this action and some of the putative class members. Venue
also lies in this judicial district in that the events which gave rise to this claim occurred here and
the property which is the subject of the action is situated within this district.
6. Under the substantive common law of Pennsylvania governing this action, the
standard and uniform retail installment contract (“RISC”) utilized by CARVANA with each of the
Plaintiffs and putative class members constitutes the “entire agreement” and which subsumes any
other agreements. Further, given the facts at issue in this case, the laws of the Commonwealth will
adequately protect the Plaintiffs and the putative class members alike since no other jurisdiction
in the United States would find CARVANA’s conduct and practices subject to this action to be in
their interests as confirmed by the various public enforcement actions against CARVANA by
7. At all times relevant hereto, defendant acted by and through its agents, servants, and
employees who acted within the scope of their authority and within the course of their employment
or engagement by CARVANA.
8. At all times relevant hereto, Arizona permits a non-resident to purchase a ninety (90)
day non-resident permit, a temporary paper license plate, to allow the individual to drive their vehicle
9. At all times relevant hereto, Tennessee does not permit renewal thirty (30) days after
a temporary tag’s issuance, Tenn. Code Ann. § 55-4-115(a)(1)-(2) other than upon the written
authorization of the commissioner, but not ever as a subterfuge to avoid registering the vehicle.
3
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 4 of 34
10. At all times relevant hereto, temporary registration plates for newly purchased motor
vehicles expire within thirty (30) days of issuance and cannot be re-issued, Pa. Code 67
11. Other states besides Arizona, Tennessee, and Pennsylvania have similar restrictions
and expectations for the issuance of temporary tags and registrations as described in ¶¶ 8-10.
12. On or around December 29, 2020, Plaintiff Jennings purchased online from Defendant
a 2017 Kia Sportage, VIN# ending in XXXX2620 (hereinafter referred to as “the Vehicle”) by
executing a written retail installment contract (“RISC”) (attached hereto as Exhibit 2) with the
f. The RISC constituted the Parties’ “entire agreement” and subsumed any other agreements.
13. Jennings and CARVANA never amended the Jennings RISC by mutual, written
14. Shortly after purchase, CARVANA delivered the vehicle with an Arizona temporary
15. Jennings has performed all of the requirements of his RISC agreement with
CARVANA.
4
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 5 of 34
16. After repeated promises in six (6) emails from February through October 2021,
CARVANA failed to provide Plaintiff with his permanent registration as it was required to do so
17. Instead, without the legal right or authorization to do so, CARVANA provided
plaintiff with six (6) temporary license tags, from the date of sale through the most recently issued
one which expired on October 23, 2021, from the Arizona Department of Transportation (2), the
18. Upon information and belief, some or all of the temporary plates CARVANA
provided were not even issued in plaintiff’s name, but rather in the name of CARVANA only.
concealed from the Plaintiff that it was not authorized by either the States of Tennessee or Arizona to
do so. Plaintiff and no other reasonable person would believe that a publically traded entity like
20. Plaintiff relied upon the RISC and CARVANA’s promises to have the vehicle
RISC, her trade-in of his prior vehicle, and her payments on the purchased vehicle (which included
the fees imposed and thereafter collected by CARVANA that are specified in ¶ 12 supra).
21. As of the date of this filing, CARVANA has still not provided Plaintiff permanent
registration as it was required to do so pursuant to the RISC and for which Plaintiff paid it to do so.
22. At all times relevant hereto, Arizona permits a non-resident to purchase a 90-day non-
resident permit and a temporary paper license plate, to allow the individual to drive their vehicle back
5
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 6 of 34
23. At all times relevant hereto, Tennessee does not permit renewal 30 days after a
24. On or around June 3, 2021, Plaintiff Furlong purchased online from Defendant a 2020
Toyota RAV4, VIN# ending in XXXX5526 (hereinafter referred to as “the Vehicle”) by executing
a written retail installment contract (“RISC”) (attached hereto as Exhibit C) with the following
material terms:
f. The RISC constituted the Parties’ “entire agreement” and subsumed any other
agreements.
25. Furlong and CARVANA never amended the Furlong RISC by mutual, written
26. Furlong has performed all of the requirements of his RISC agreement with
CARVANA.
27. CARVANA delivered the vehicle with an Arizona temporary license tag to Plaintiff
28. After the first temporary license tag expired on October 12, 2021, CARVANA failed
to provide Plaintiff Furlong with his permanent registration as it was required to do so pursuant to
6
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 7 of 34
29. Instead, on or about October 7, 2021, without the legal right or authorization to do so,
CARVANA provided plaintiff with a new temporary license tag for the duration of thirty (30) days
issued by Tennessee’s Department of Motor Vehicles. When it provided the improper Tennessee
registration, CARVANA concealed from the Plaintiff Furlong that it was not authorized by the State
of Tennessee to do so.
30. Plaintiff relied upon the RISC and CARVANA’s promises to have the vehicle
RISC, his trade-in of his prior vehicle, and his payments on the purchased vehicle (which included
the fees imposed and thereafter collected by CARVANA that are specified in ¶ 23 supra).
31. As of December 16, 2022, CARVANA finally provided Plaintiff Furlong permanent
registration as it was required to do so pursuant to the RISC and for which Plaintiff paid it to do so.
32. In August 2021, the State of North Carolina revoked CARVANA’s Raleigh area
dealers license for, among other infractions of dealer licensing laws, not delivering vehicle titles to
the DMV in a timely manner and improperly issuing out-of-state temporary tags and plates to buyers
similarly situated to the Plaintiff who otherwise had no connection to the states from which the
33. In December 2021, the Florida Department of Highway Safety and Motor Vehicles
sent an email to CARVANA, stating that it “remains concerned with CARVANA’s apparent
inability to comply with the provisions of Florida law requiring a dealer to apply for title within
30 days of the sale and the impact that has on Florida consumers.”
34. The Florida agency’s email includes a list of 300 CARVANA vehicle sales with
titles that are awaiting transfers, including 100 in Florida, and gives CARVANA a January 31,
7
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 8 of 34
2022, deadline before it launches administrative action to suspend CARVANA’s Florida dealer
license.
35. Upon information and belief, it is averred that CARVANA’s state law compliance
policies and practices are such that it routinely issues multiple temporary license tags in violation of
state laws governing the issuance of temporary license tags. More specifically, based on public
records and media reports, discovery will reveal that CARVANA’s records indicate routine repeated
generation of temporary license tag reissuances by CARVANA’s computer system in connection with
sales transactions in the Commonwealth of Pennsylvania and throughout the United States in the same
manner and form as what occurred with the Plaintiffs. This belief is based in part on other consumer’s
experiences and also the administration action taken against CARVANA recently by the State of
North Carolina.
36. Plaintiff Jennings suffered actual damages from CARVANA’s aforesaid conduct in
that he paid CARVANA fees and charges in the amount of $93.00 for licensing and registration for
37. Plaintiff Furlong suffered actual damages from CARVANA’s aforesaid conduct in
that he paid CARVANA fees and charges in the amount of $93.00 for licensing and registration for
Agreement” purporting to require the Parties to participate in forced arbitration, but this clause is void
under the Pennsylvania Motor Vehicles Sales Finance Act (“MVSFA”), 69 P.S. § 613(A) and (B)
which requires, respectively, that all retail installment agreements between the parties must be placed
8
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 9 of 34
on one (1) document and must be complete as to all material provisions. Knight v. Springfield
William Stalls
Phlebotomist/Lab Assistant with Mission Hospital, purchased from CARVANA a 2012 Hyundai
Thereafter, CARVANA issued temporary tags for the vehicle from Georgia, Tennessee, Arkansas,
and Arizona.
41. While driving with the temporary tags provided by CARVANA without the right
42. When the officer checked the vehicle’s history and realized that Stalls had not
permanently registered the vehicle, the officer stated that his record search running the vehicle
VIN revealed that the vehicle was still registered to the previous owner.
43. Despite Stalls showing the officer his sale paperwork and explaining he was waiting
for permanent tags from CARVANA, Stalls was arrested and confined to jail for eight (8) hours
44. Since September 4, 2021, Stalls has been unable to insure or drive the vehicle for
lack of permanent registration and cannot otherwise dispose of the vehicle by sale or trade for lack
45. Stalls confronted CARVANA regarding its failure to issue him a permanent
registration and CARVANA blamed the delay on South Carolina’s DMV and on its third-party
9
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 10 of 34
vendor failing to timely process his registration and to provide specific timing to CARVANA for
46. On or about January 11, 2022, while driving with Arizona temporary tags with an
expiration date of February 22, 2022, Stalls was stopped by law enforcement and received a
47. Stalls was also advised by the officer conducting the stop that his database search
revealed the temporary tag on his vehicle was issued to CARVANA, not Stalls.
48. Thereafter, Stalls was once again confined at a police station and ultimately
permitted to sign himself out of custody rather than again posting bond.
49. Stalls is scheduled to appear in a South Carolina Court for both citations.
Sonya Jackson
50. On or about May 24, 2021, Jackson, a Pennsylvania resident, purchased from
CARVANA a 2017 Jaguar, VIN # XE 966851. Thereafter, CARVANA issued Jackson temporary
51. After the last temporary tag issued by CARVANA expired on October 15,
2021, Jackson has been unable to lawfully drive the vehicle for lack of permanent registration.
52. Jackson confronted CARVANA regarding its failure to issue her permanent
registration and, after repeatedly asking for insurance and other documents it insisted it did not have
and those documents being repeatedly resent, CARVANA has most recently responded that it is
George Dvorcek
10
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 11 of 34
53. On or about September 10, 2021, Dvorcek, a Pennsylvania resident, purchased a 2015
54. Thereafter, Dvorcek received from CARVANA temporary tags for the vehicle from
Pennsylvania and then Arizona, the latter which will expire in March 2022.
55. Dvorcek has been unable to the vehicle undergo state inspection for lack of permanent
registration.
Zerius Brittain
56. On or about July 15, 2021, Brittain, a resident of Texas, purchased from CARVANA
57. Thereafter, Brittain received from CARVANA temporary tags from Texas for the
vehicle.
58. After the temporary tags issued by CARVANA expired on September 5, 2021,
Brittain has been unable to insure or drive the vehicle for lack of permanent registration.
59. Brittain confronted CARVANA regarding its failure to issue his permanent
registration and Carvana responded that it could not do so because it had to “rebuild” the sales contract
60. CARVANA advised that the “rebuilt” contract will not contain the same cash price or
Kelly Burgess
61. On or about December 11, 2020, Burgess, a Texas resident, purchased from
CARVANA a used 2018 Kia Forte LX, VIN# ending in XXX 164589.
11
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 12 of 34
62. Thereafter, Burgess received temporary tags issued by CARVANA from Arizona and
Tennessee.
63. After the last temporary tag issued by CARVANA expired on August 6, 2021,
Burgess was unable to drive the vehicle for lack of permanent registration.
64. CARVANA stated to Burgess that it could no longer provide any more temporary
plates.
65. After two (2) weeks without use of the vehicle, Burgess took her paperwork to the
local tax assessor’s office and was able to obtain a Texas temporary tag herself on August 24, 2021.
66. Burgess renewed the Texas temporary registration two more times until no more
Texas temporary tags were allowed for the lifetime of the vehicle.
67. CARVANA overnighted a check to Burgess for $100.00 to cover the $32.50 charge
68. Before the final Texas temporary tag issued by CARVANA expired on November 24,
2021, CARVANA provided Burgess a 90-day temporary tag issued from Arizona that expires on
February 6, 2022.
69. In or around August 2021, Burgess confronted CARVANA regarding its failure to
issue her permanent registration. CARVANA responded that it lost the original title to the vehicle and
would have to overnight paperwork to the previous owner in California so that CARVANA could
request a duplicate title from California DMV and then use that title to file for Burgess’s permanent
registration in Texas.
70. Burgess filed a formal complaint with the Texas DMV regarding CARVANA’s
12
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 13 of 34
71. The DMV investigator closed her complaint on October 14, 2021, and notified
dispute and was told by CARVANA to only contact the assigned agent via email.
73. Burgess emailed the agent as instructed, but after September 4, 2021, he stopped
74. CARVANA has otherwise failed to provide any update to her thereafter.
75. Burgess’ Texas state inspection expired December 31, 2021. Texas requires a valid
state inspection within 60 days of applying for permanent registration of a vehicle which, after
Terri Burton
76. On or about June 1, 2021, Burton purchased from CARVANA a 2017 VW Golf GTI,
77. Thereafter, Burton received temporary tags issued by CARVANA from Texas (2) and
Arizona (3) with the last temporary tag set to expire on February 8, 2022, after which Burton will be
78. Burton has confronted CARVANA regarding its failure to issue her permanent
registration and CARVANA responded by admitting it didn't have title to the subject vehicle and
therefore offered to buy back the vehicle and pay Burton money on top of the buy-back amount
conditioned on Burton using the excess funds to purchase another vehicle from CARVANA.
Christopher Flanders
13
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 14 of 34
80. CARVANA promised Flanders delivery of the vehicle by September 7, 2021, but,
after being informed by CARVANA on September 13, 2021, that the delivery driver left the vehicle
in Florida, CARVANA refunded the $599 delivery fee charged in the sales transaction on September
17, 2021.
81. Thereafter, CARVANA delivered the vehicle to Missouri with an Indiana state
82. On September 18, 2021, Flanders completed all paperwork CARVANA required of
83. Flanders confirmed a “K. Mendez” signed for receipt of the aforesaid registration
paperwork for CARVANA on September 21, 2021, at CARVANA’s corporate office in Tempe AZ.
84. On October 1, 2021, Flanders received from CARVANA a notice that CARVANA
85. Flanders received a temporary tag from the State of Florida with an expiration date of
86. Thereafter, CARVANA emailed Flanders an Arizona temporary tag which expires on
February 12, 2022, and told Flanders in the email that his vehicle’s Missouri Inspection and Odometer
reading expired on February 18, 2021, and that it would give Flanders $500.00 to obtain a new one
87. After the thirty (30) day period to title and register his vehicle had passed, Flanders
telephoned “Tyler” at CARVANA to request it send him the title and registration paperwork in order
14
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 15 of 34
88. CARVANA denied Flanders’ request stating that it is illegal in his resident state of
89. On November 20, 2021, Flanders called the Missouri DMV and was told it was not
illegal to register the vehicle and that there was no record of CARVANA having attempted to title or
register his vehicle in the state of Missouri and that, on September 24, 2021, CARVANA had titled
the vehicle in Arizona under its name at its corporate address and was given a title number.
90. On or about November 21, 2021, Flanders called the Arizona DMV in an attempt to
get a copy of the title and was told that he could not because the vehicle was titled to CARVANA.
91. To date, CARVANA has failed to title and register the vehicle permanently in
Gerald Hawthorne
94. Hawthorne has been stopped by police while driving the vehicle on three (3)
occasions:
a. In Plain Dealing, LA, where the officer expressed that CARVANA failing to register
b. In Arkansas; and,
c. In Cullen, LA, when, after being stopped, the officer had Hawthorne call CARVANA
on his cell phone and the CARVANA “advocate” who responded stated that
CARVANA didn’t yet have title to the vehicle and was having trouble obtaining it.
15
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 16 of 34
95. Hawthorne fears driving the vehicle for lack of permanent registration given his
past experiences.
96. Hawthorne has repeatedly confronted CARVANA regarding its failure to issue him
permanent registration and CARVANA has promised numerous times to deliver permanent
registration but has failed to do so despite more than one (1) year passing since its purchase.
Stuart Sendlebach
97. On or about September 20, 2021, Sendelbach purchased from CARVANA a 2016
98. Thereafter, Sendelbach received temporary tags issued by CARVANA from Texas
99. Sendelbach has confronted CARVANA regarding its failure to issue him permanent
registration and CARVANA replied that the delays in Sendelbach gaining registration were due to
COVID
purchased another vehicle from a brick-and-mortar automobile dealer on or around the same time as
the CARVANA purchase and received permanent registration within three (3) weeks of the purchase
Javier Snowbeck
101. On or about July 22, 2021, in Las Vegas, Nevada, Snowbeck purchased a 2013 Toyota
102. Thereafter, Snowbeck received temporary tags issued by CARVANA from Arizona
16
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 17 of 34
103. On or about September 2021, CARVANA required Snowbeck to get a smog test
105. CARVANA advised Snowbeck that it can't process his permanent registration
because it takes 32 days to do so which is beyond the time his aforesaid insurance expiration date.
106. Snowbeck confronted CARVANA regarding its failure to issue him permanent
registration and CARVANA responded it needed an extension on his insurance policy before they
Tina Biller
107. On or about August 13, 2021, Biller, an Indiana resident, purchased from
108. Thereafter, Biller received temporary tags issued by CARVANA from Indiana and
Arizona.
109. The Arizona temporary tag which Biller received was not lawful because Indiana
law requires permanent registration of a vehicle within forty-five (45) days of its purchase.
110. After the last temporary tag expired on September 24, 2021, Biller was unable to
111. On October 24, 2021, CARVANA advised Biller that it sent her registration
112. CARVANA advised Biller that it couldn't process her permanent registration
because it takes thirty-two (32) days to do so which is beyond the time her insurance will expire.
113. Biller has confronted CARVANA regarding its failure to issue her permanent
registration and Carvana responded by offering her reimbursements for Uber ride share while
17
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 18 of 34
accusing the BMW dealer from whom CARVANA allegedly purchased the vehicle for the
registration delay.
Todd Birmann
114. In March 2021, Birmann, a North Carolina resident, purchased from CARVANA a
115. Thereafter, Birmann received seven (7) temporary tags issued by CARVANA from
various states including Tennessee (multiple) and Florida (current expired tag).
116. After the last temporary tag expired in September 2021, Birmann has been unable to
insure or drive the vehicle for lack of permanent registration. Birmann has confronted CARVANA
regarding its failure to issue him permanent registration and Carvana has responded that “this is part
117. Birmann does not understand why there is any problem with the sale contract he
118. On or about August 21, 2021, the Carrolls, New Hampshire residents, purchased from
119. The Carrolls received a temporary tag from Georgia which expired on September 30,
2021, and then CARVANA sent to the Carrolls a second temporary tag issued from Arizona.
120. On or about November 23, 2021, the Carrolls finally received New Hampshire
121. As of December 22, 2021, despite numerous conversations between the Carrolls and
CARVANA, CARVANA has not yet sent the Carrolls a vehicle title listing Digital Federal Credit
18
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 19 of 34
122. As a result of not receiving vehicle title listing it as the lienholder, DFCU has declared
123. In New Hampshire, residents are allowed to register their own vehicles, but
CARVANA required the Carrolls to go through its service to register the vehicle and charged them a
total of $705.90 when the registration cost was actually only a total of $187.00.
Jeffrey Harris
124. On May 27, 2021, Harris, an Indiana resident, purchased from CARVANA a 2015
125. CARVANA issued to Harris three (3) temporary tags for Kentucky, Arizona, and
Tennessee with the last temporary tag being issued on December 10, 2021, with a 90-day
expiration date.
126. Harris confronted CARVANA many times by telephone and CARVANA responded
variously that there was an issue with its “third party vendor” or that it was otherwise “working on
it”.
Robert Jennis
128. On or about July 2020, Jennis, a resident of Florida, purchased from CARVANA a
129. Thereafter, Jennis received three (3) temporary tags issued by CARVANA from
130. After one of the temporary tags expired, Jennis was unable to drive the vehicle for
lack of permanent registration until CARVANA finally issued permanent tags to Jennis in December
2020.
19
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 20 of 34
Brandon Johnson
131. On or about December 26, 2020, Brandon Johnson, a resident of Georgia, purchased
132. Thereafter, Johnson received from CARVANA temporary tags from Alabama,
Arizona (3x) North Carolina, Tennessee (3x), and from South Carolina.
133. When Johnson previously confronted CARVANA regarding its failure to issue him
permanent registration, CARVANA responded that COVID was delaying the title registration
process.
134. After his last temporary tag expired in October 2021, CARVANA advised Johnson
that it could not provide him title to the vehicle and that, instead, Johnson, despite wanting to retain
the vehicle, but exhausted by the year plus long dispute, returned the CARVANA to Carvana in
exchange for a refund of the ten (10) $290.00 payments made under the sale/financing agreement for
the vehicle.
Brandon Boucher
135. On or about July 3, 2021, Brandon Lee Boucher, a resident of Michigan, purchased
136. Thereafter, Johnson received from CARVANA temporary tags from Michigan (2x)
and Arizona.
137. After his Arizona temporary tag expired, Boucher has been unable to use the vehicle
William Walker
20
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 21 of 34
138. On or about August 25, 2021, Walker purchased from CARVANA a 2013 Lexus ES,
139. Thereafter, Walker received temporary tags issued by CARVANA from Florida (3x)
140. In or around December 2021, Walker confronted CARVANA regarding its failure to
issue him permanent registration after the last temporary tag expired and CARVANA unwound the
142. Thereafter, Walker received temporary tags issued by CARVANA from Tennessee
143. Budny has confronted CARVANA multiple times regarding its failure to issue him
permanent registration and CARVANA has responded that it is no longer allowed to provide
144. On or around October 30, 2021, CARVANA reached out to Budny to offer to buy the
car back from Budny, or trade it in for another similar vehicle. Budny refused that offer.
146. Budny currently has still not received permanent registration to his vehicle.
Dena Devlin
21
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 22 of 34
148. Thereafter, Devlin received temporary tags issued by CARVANA from various
149. After the temporary tags expired in early October 2021, plaintiff was unable to
insure or drive the vehicle for lack of permanent registration until roughly mid-October when it
150. Devlin confronted CARVANA regarding its failure to issue her permanent
difficult for [Carvana] to provide an accurate timeline of how long the process will
“These deals are kept with a third-party vendor until the DMV actually accepts your
packet for processing. Once the DMV actually accepts your packet for processing
151. Devlin responded to CARVANA after 3 months of not having permanent registration
that:
“The DMV said Arkansas only allows 30 days to register a vehicle and then they
152. CARVANA sent Devlin two (2) separate checks in the amount of $250.00 under the
Ollie Hoops
22
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 23 of 34
153. On or about June 2021, Hoops, a Texas resident, purchased from CARVANA a 2018
154. Thereafter, Hoops received temporary tags from Arizona which have since expired.
155. Hoops’ has not received permanent registration to his vehicle leaving him unable to
Jeffrey Williams
156. On or about August 18, 2021, Williams, a Nevada resident, purchased from
157. Thereafter, Williams received temporary tags issued by CARVANA from Georgia
and Arizona.
158. Due to the delay in receiving permanent registration to his vehicle, Williams filed a
August 23, and after the 7-Day Money Back Guarantee, the registration process
began.
The temporary operating plate initially provided to Mr. Williams expired, so we issued
a second Arizona temporary operating plate that will remain valid for ninety days. Our
23
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 24 of 34
dealer license restricts which states can obtain temporary operating plates, so we
Carvana apologizes for the inconvenience caused to Mr. Williams. At this time, we
are not providing Mr. Williams the option to return or exchange his vehicle. Once the
DMV completes the registration, his license plates and registration will be sent via
(emphasis added).
160. In November 2021, Williams received permanent registration to his vehicle leaving
Janice Anderson
161. On or about January 19, 2021, Anderson, a Delaware resident, purchased from
162. Thereafter, Anderson received numerous temporary tags issued by CARVANA from
various states including Pennsylvania and Arizona, but she has still not received permanent
Leann Anderson
163. On or about October 23, 2021, Anderson, a Utah resident, purchased from
24
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 25 of 34
165. After the temp tags expired on December 9, 2021, Anderson received another
166. Anderson has been unable to insure or drive the vehicle for lack of permanent
registration.
167. Anderson confronted Carvana regarding its failure to issue her permanent registration
and Carvana responded that it is actively working on completing the final step in registering the
168. The allegations above are re-alleged and incorporated herein by reference.
169. This action is properly brought on behalf of a class of similar persons, pursuant to Fed.
R. Civ.P. 23(a) and 23(b). The prerequisites Fed. R. Civ.P. 23 can be met by the following proposed
a. Nationwide Title Class: All persons in the United States east of the Mississippi
River who entered into contracts with CARVANA to purchase vehicles since
November 5, 2019, and CARVANA agreed to provide car registration services with
170. Plaintiffs both qualify as a member of each of the proposed classes in the preceding
paragraph.
171. Excluded from each of the putative classes are any person who falls within the
definitions if the person is (i) an employee or independent contractor of CARVANA; (ii) a relative of
25
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 26 of 34
an employee or independent contractor of the CARVANA; or (iii) an employee of the Court where
this action is pending. Excluded from the Pennsylvania Title Class are any persons were purchased
172. The proposed class definitions in ¶ 163 as limited by ¶ 165 may be amended or
173. The particular members of the (i) Nationwide Title Class, and (ii) Pennsylvania
Title Class, (collectively referred to “Proposed Classes”) are capable of being described without
difficult managerial or administrative problems. The members of the putative classes are also readily
identifiable from the information and records in the possession or control of the Defendant or its
affiliates and agents, and from public records. CARVANA is required by the laws governing its
practices to keep records of all temporary vehicle registration tags issued by it during the class period
and also to retain records of all permanent vehicle registrations it acquires on behalf of its customers.
174. The Proposed Classes are sufficiently numerous and exceed more than fifty persons
each, such that individual joinder of all members is impractical. This allegation is based on a
publically filed data disclosed by CARVANA’s public filings. CARVANA has also alleged in its
Notice of Removal to this Court (Doc. 1 at ¶¶ 9-10) that the Proposed Classes “give the information
available to Carvana shows that, from November 5, 2019 through November 5, 2021, more than 100
people in the states east of the Mississippi River (including more than 100 persons in the
Commonwealth of Pennsylvania) entered into contracts to purchase vehicles and paid certain fees
175. The Proposed Classes are so numerous that joinder of all members is impracticable as
the sheer number of cases would clog the court systems and other forums—especially given the delays
26
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 27 of 34
176. There are questions of law and fact common to the Proposed Classes which
predominate over any questions affecting only individual members of the putative class and subclass.
The wrongs alleged against Defendant by the members of the Proposed Classes and the remedies
sought by Named Plaintiffs and the putative class members against CARVANA are identical—i.e.
the return of “fees related to registration, title, and/or licenses” (Doc. 1 at ¶ 10) paid to CARVANA
and appropriate injunctive relief to require CARVANA to obtain permanent registration tags for the
putative class members within thirty days who have not yet received them.
177. The Proposed Classes meet the requirements of Fed. R. Civ.P. 23 relating to classes
that seek monetary relief as the common issues identified above are also the predominant issues in
this action in that the common issues related to the members of the Proposed Classes and include, but
a. Whether CARVANA breached its contracts by failing to provide the agreed upon
b. Whether CARVANA had the right to issue temporary registrations from the States
other than class members’ legal residence to the class members’ vehicles when the
transaction did not concern vehicles purchased from or sold to class members from
competition;
d. Whether CARVANA is liable to the class members for the damages and losses,
including nominal damages, in the form of the fees agreed upon for the services not
reasonable provided.
27
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 28 of 34
178. CARVANA’s defenses (which defenses are denied) would be typical or identical
for each of the member of the Proposed Classes and will be based on the same legal and factual
theories.
Proposed Classes in that common questions predominate over any individual questions and a class
action is superior for the fair and efficient adjudication of this controversy.
180. A class action will cause an orderly and expeditious administration of claims by the
members of the Proposed Classes and economies of time, effort and expenses will be fostered and
181. The only individual questions concern the identification of members of the
records or from CARVANA’s business records or other sources including those from the state
agencies, which are admissible as an exception to the hearsay rule and as a statement by a party or
qualify as government records to which the Court may take judicial notice.
182. The Named Plaintiffs’ class claims are typical of the claims of the members of the
Proposed Classes since they are based on and arise out of identical facts constituting the wrongful
183. Plaintiffs will also fairly and adequately represent and protect the interests of the
Proposed Classes. They are similarly situated with, and have suffered similar injuries as, the
Proposed Classes they propose to represent. Plaintiffs do not have any interests which might cause
them not to vigorously prosecute this action or are otherwise adverse to the interests of the
members of the Proposed Classes. They feel that they and the putative class members have been
28
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 29 of 34
wronged wish to obtain redress of the wrong, and want CARVANA stopped from failing to comply
with its mandatory duties that form the basis of the class claims.
184. Plaintiffs have also hired attorneys who meet the criteria of Fed. R. Civ.P. 23 as they
can adequately represent the classes since they are experienced attorneys with substantial class action
experience and focus their practices in the areas of consumer law. Plaintiffs and counsel have adequate
185. The Proposed Class members have suffered actual damages, losses, and harm similar
186. The Proposed Class members are also entitled to injunctive relieve to require
CARVANA to comply with its promises to obtain permanent vehicle registrations for the members
187. The allegations regarding the additional victims set forth herein are pleaded in
accordance with case law and Pa.R.E. 404(b)(2) to demonstrate CARVANA’s motive, knowledge,
notice, plan, scheme and the absence of mistake or accident, and to demonstrate the propriety of
exemplary damages under the UTPCPL. Pa.R.E. 404(b)(2) (“[e]vidence of other crimes, wrongs, or
acts may be admitted [into evidence] for other purposes, such as proof of motive, opportunity, intent,
These allegations also substantiate and support the Plaintiffs’ claim(s) for punitive and/or exemplary
damages.
189. CARVANA has engaged in a pattern and practice of fraud and deceit and have
29
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 30 of 34
190. Plaintiffs incorporate the preceding paragraphs herein. This claim is brought on behalf
of the Plaintiff individually and on behalf of the Nationwide Title Class and the Pennsylvania Title
Class members.
191. As described herein, Plaintiffs, theNationwide Title Class, and the Pennsylvania Title
192. Every contract imposes the duty of good faith and fair dealing upon the parties in
193. An express and/or implied term of the contracts between the Plaintiffs, the Nationwide
Title Class, and the Pennsylvania Title Class members, is thatCARVANA agreed that the sale was
being conducted in compliance with all laws and regulations governing such sales.
194. By failing to permanently license and register the vehicles properly in the fees it
charged and collected from the Plaintiffs, the Nationwide Title Class, and the Pennsylvania Title Class
members, Defendant CARVANA failed to conduct the sale of the vehicles to the Plaintiffs and class
members in compliance with all laws and regulations governing such sales and it improperly issued
temporary registrations from various states including Arizona and Tennessee without the right to do
so since, under both Arizona and Tennessee law, it could not issue temporary vehicle registrations to
vehicles with no nexus to the States of Arizona and Tennessee in the sales transaction.
195. By its aforesaid conduct, Defendant CARVANA breached the terms of the contracts
it had with the Plaintiffs, the Nationwide Title Class, and the Pennsylvania Title Class members,
including any implied or express warranties therein, and acted in bad faith.
30
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 31 of 34
the duty of good faith by denying Plaintiffs and the Nationwide Title Class and the Pennsylvania
Title Class members the benefits to which they bargained and paid for in their sales contracts.
197. Defendant CARVANA’s breaches of the covenant of good faith and fair dealing
have proximately and directly caused damages to Plaintiffs, the Nationwide Title Class, and the
198. Plaintiffs incorporate the preceding paragraphs herein. This claim is brought on
behalf of the Plaintiffs individually and on behalf of the Pennsylvania Title Class members.
199. The used motor vehicle sales practices described herein related to Defendant
200. The UTPCPL, 73 P.S. §§201-2(4) prohibits unfair or deceptive trade practices in the
sale of goods such as used motor vehicle sales as provided by CARVANA, and also prohibits unfair
or deceptive trade practices in the sale or provision of such services as described in this action.
201. Plaintiffs and the Pennsylvania Title Class members purchased their vehicles for
202. CARVANA by its acts or omissions described herein, made materially false,
misleading oral or written statements or other representations, directly and indirectly through
authorized agents and employees, including but not limited to the following:
31
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 32 of 34
e. Imposing and collecting car registration fees for which it did not perform the agree
upon service and/or utilized an unfair and deceptive practice of issuing temporary
registrations from the States of Arizona and Tennessee without the right to do so.
204. As a licensed installment seller CARVANA knew or should have known prior to
making the sales to Plaintiffs and Pennsylvania Title Class members the laws governing the
transactions.
205. CARVANA’s routine business practices subject to this claim disregarded the laws
206. No reasonable person would assume that a licensed installment seller like CARVANA
would violate the laws governing its activities. Plaintiffs and the Pennsylvania Title Class members
justifiably relied on CARVANA’s acts and omissions by believing the fees charged to them were
lawful and bona fide and they paid the fees as further evidence of that reasonable reliance.
misrepresentations and omissions had the capacity, tendency, or effect of deceiving or misleading the
plaintiff to purchase the subject vehicle in violation of the UTPCPL by, including but not limited to
causing a likelihood of confusion or misunderstanding as to the propriety of the registration fee, all in
208. By its deceptive conduct towards plaintiff as described above, CARVANA is strictly
liable to Plaintiffs and the Pennsylvania Title Class members for damages they incurred.
32
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 33 of 34
WHEREFORE, Plaintiffs request that the Court grant judgment against the Defendant as
follows:
A. Certifying this action as a Class Action with the Proposed Classes as defined above and
with Plaintiffs as the representative of the Proposed Classes and their Counsel as Class
Counsel;
B. Awarding Plaintiffs and the members of the Proposed Classes appropriate actual damages
under the legal theories alleged herein together with pre-judgment interest;
C. Ordering Defendant to pay treble damages to the Plaintiffs and the members of the
E. Granting such other relief as the Court deems just and proper.
JURY DEMAND
/s/Robert P. Cocco
ROBERT P. COCCO, P.C.
Pa. Id. No. 61907
1500 Walnut Street, Suite 900
Philadelphia, PA 19102
215-351-0200
[email protected]
33
Case 5:21-cv-05400-EGS Document 8 Filed 01/13/22 Page 34 of 34
Dated: January 13, 2022 Attorney for Plaintiffs and the Putative
Classes
Certificate of Service
I hereby certify that a copy of the foregoing and the attached exhibits were sent
through the Court’s CM/ECF system to counsel for the Defendant when filed with the Court.
/s/Robert P. Cocco
Robert P. Cocco
34