Xu Zhang v. BMW Financial Services NA, LLC
Opinion
Trial Court Opinion
I. Background
Plaintiffs Xu Zhang and Xishu Zhang leased a 2020 BMW M340i xDrive Sedan (the “Vehicle”) from Defendants BMW Financial Services NA, LLC (“BMW”) and PAG Santa Ana B1, Inc. (“PAG”). Complaint (“Compl.”) (Dkt. 1-1) at 1. Plaintiffs allege that Defendants induced them to enter into a lease. Id. The lease stated that in the event of a total loss, Defendant BMW could collect the insurance payment. Id. Defendants assured Plaintiffs that the financial obligation in the lease would “not exceed the down payment, monthly payments, and the lease end fee.” Id. Based on this assurance, Plaintiffs believed they could purchase the Vehicle at any time for the remaining balance on the lease account, and also keep any value above that balance as equity. Id. The Vehicle was deemed a total loss, and the insurance company issued payments to Defendants. Id. Defendants did not remit Plaintiffs’ equity. Id. Plaintiff sued Defendants in Orange County Superior Court, alleging two violations of contract common law, two violations of Business & Professions Code § 17200, et seq., and one violation of the California Consumer Legal Remedies Act. See