A federal judge in New Jersey recently dismissed an action brought against BMW regarding "offensive" smelling insulation panels in the BMW Model E46 vehicles. Plaintiff, whose warranty had expired, asserted claims for violations of the Magnuson-Moss Warranty Act, breach of express warranty, breach of implied covenant of good faith and fair dealing, breach of implied warranty of merchantability, consumer fraud under the state statute, and unjust enrichment. In disposing of the case, the court found that Plaintiff's allegations, that BMW had knowledge of the defect before the expiration of the warranty, could not serve as a basis for finding that the warranty was unconscionable. Similarly, the court held that Plaintiff's allegations regarding BMW's knowledge of the defect amounted to mere speculation that could not support Plaintiff's consumer fraud claim. The decision is Alban v. BMW of North America, LLC, Civ. No. 09-5398 (DRD), U.S. District Court for the District of New Jersey.