Arman Simonyan v. BMW Financial Services NA, LLC

I. FACTUAL AND PROCEDURAL BACKGROUND

Plaintiffs allege that, on July 27, 2021, they entered into a Lease Agreement with McKenna Motor Company, Inc. for a 2021 BMW 750 xi (“the Subject Vehicle”). The Lease was assigned to BMW FS which administered and serviced the Lease after the assignment. On or about August 20, 2023, the Subject Vehicle was involved in an accident and GEICO General Insurance Company (“GEICO”), Plaintiffs’ insurance carrier, declared the Subject Vehicle to be a total loss. GEICO subsequently determined that the total loss amount was $78,695.33, which was $9,362.17 more than the Adjusted Lease Balance due under the Lease Agreement. Plaintiffs allege that BMW FS fraudulently collected the full total loss amount from GEICO, and that, instead Plaintiffs were entitled to recover the “equity” (i.e., the difference between the total loss amount and the Adjusted Lease Balance) under the terms of the Lease Agreement. On January 10, 2024, Plaintiffs filed a Complaint against BMW FS and McKenna Motor Company, Inc. in Los Angeles County Superior Court, alleging the following claims for relief: (1) fraud and deceit; (2) breach of implied covenant of good faith and fair…