Honda Hybrid Litigation
Practice:
Consumer Protection
Phase:
Current
A San Diego Superior Court judge, on September 30, 2011, preliminarily approved a comprehensive settlement that resolves false advertising claims initially brought in a California federal court in 2007 as well as consumer claims first filed by Chimicles & Tikellis in August 2010 alleging that a July 2010 Honda software update to the Integrated Motor Assist (“IMA”) battery system negatively impacted the fuel economy and performance of the MY 2006-2008 Honda Civic Hybrids. The false advertising claims, brought under the Unfair Competition Law (“UCL”), Cal. Bus. & Pro. Code § 17200, et seq., False Advertising Law (“FAL”), Bus. & Pro. Code § 17500, et seq., the Consumer Legal Remedies Act (“CLRA”), Cal. Civil Code § 1750, et seq., and for common law Unjust Enrichment, allege that Honda advertised and marketed the Civic Hybrid in a disingenuous way, with inaccurate representations of fuel economy that the car simply did not achieve under normal driving conditions.
All persons who purchased or leased a Honda Civic Hybrid model year 2003 through 2009 in the United States are included in the Settlement Class. Chimicles & Tikellis, one of the two firms that have prosecuted the Honda Civic Hybrid Litigation since its inception, expects notice to be mailed to class members by late December 2011.
The settlement approved by San Diego County Superior Court Judge Timothy B. Taylor will cover all of the claims in all of the above-described lawsuits, and supersedes a prior proposed settlement for which notice was sent out in October 2009. Information concerning this new settlement can be found at the following website: www.hchsettlement.com.
The proposed settlement will entitle all class members to cash, cash equivalent, and additional non-cash benefits that are summarized in the following tables (for a full description of the settlement benefits, please visit www.hchsettlement.com):
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Cash and Cash Equivalent Settlement Benefits
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Eligible Class Members
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Cash
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Rebate Certificates (redeemable on the purchase of any new Honda or Acura vehicle)
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MY 2003 – 2009
Settlement Class Members who are dissatisfied with the fuel economy of their HCH |
$100
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$500 (fully transferable)
--OR--
$1000 (non-transferable)
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*MY 2006 – 2008
Settlement Class Members who received the Software Update and remain dissatisfied with the HCH |
Additional $100
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Additional $500 fully transferable rebate certificate
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* MY 2006-2008 Settlement Class Members electing ADR Dispute Resolution (described below) will not receive these additional benefits
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Additional Settlement Benefits
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MY 2003 – 2008
Settlement Class Members |
IMA Warranty Extension: These Settlement Class Members will receive a 12 Month/12,000 mile extension on the original IMA Battery Warranty, plus reimbursement for out-of-pocket expenses on IMA repairs made during what would have been the extended warranty period.
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MY 2003 – 2009
Settlement Class Members |
Fuel Economy Video: All Settlement Class Members will be entitled to a video prepared and produced by Honda describing ways to maximize and optimize vehicle fuel economy.
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MY 2006 – 2008
Settlement Class Members who received the Software Update and remain dissatisfied with the HCH |
ADR Dispute Resolution: In lieu of the Additional Cash and Rebate Certificates available for MY 2006-2008 Settlement Class Members, these Settlement Class Members may instead elect to participate in a binding dispute resolution program (“ADR”) administered by Judicial Arbitration and Mediation Services (“JAMS”). Eligible Settlement Class Members choosing this option will be required to pay $250 towards JAMS’ mediation fees, but all other fees due to JAMS will be paid by Honda.
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Please note that this settlement will not become effective unless and until the Court grants final approval of the settlement and the time for appeals has been exhausted. The final approval hearing is currently scheduled for March 16, 2012, however this date may change prior to the hearing. Settlement Class Members are encouraged to check this website (and the settlement website at www.hchsettlement.com) periodically for updates.
HONDA CIVIC HYBRID LITGATION CLASS SETTLEMENT: MYTHS & FACTS
MYTH: Class members will receive only $100 or $200 from the proposed class settlement.
FACT: In addition to claiming (depending upon model year) $100 or $200 in cash, class members are also eligible for:
(1) up to $1000 in fully transferable (that is, can be sold by class members for cash) rebate certificates for the purchase of any new Honda or Acura vehicle;
(2) up to $1500 in rebate certificates that the class member can redeem for his or her own purchase of a new Honda or Acura vehicle;
(3) an automatic 12 month or 12,000 mile warranty extension on the hybrid battery that is retroactive; and
(4) an alternative dispute resolution program that has no recovery limitation on what a class member may receive.
MYTH: The lawyers get more than the class members.
FACT: The order giving the proposed settlement preliminary approval valued the settlement—counting just the approximately 200,000 original purchasers—as high as $228 million. The attorneys’ fees are only 3.7% of the Judge’s estimate and this does not take into account the approximately 300,000 subsequent purchasers who are also eligible to make claims.
MYTH: Small claims court provides more generous remedies.
FACT: Filing your own suit, including in small claims court, carries the risk of recovering nothing. In contrast, the class action benefits are guaranteed. And some states limit small claims recovery to a maximum of $2500 and virtually all states would permit Honda to appeal an adverse ruling. The ADR process available to class members has no limit on recovery.
MYTH: Class members who opt out of the settlement and decide to pursue their own case individually are dissatisfied with the proposed class settlement.
FACT: In one case where a class member has opted to pursue her own claim individually the class member was an attorney and acknowledged in writing to Plaintiffs’ counsel that (“…I must say, you guys negotiated one of the best class actions settlements I have ever seen…”).
| Attachment | Size |
|---|---|
| HONDA FAC.pdf | 1.03 MB |
| FILED RONDA GIBBLE COMPLAINT.PDF | 1.63 MB |
| Filed Stouch et al complaint 8-20-10.pdf | 2.56 MB |
| stamped Corrected Amended Thieben Complaint.PDF | 619.67 KB |
Attorneys to Contact:
Nicholas E. Chimicles (Nick@chimicles.com)
Alison Gabe Gushue (AlisonGushue@chimicles.com)
361 West Lancaster Avenue, Haverford, PA 19041 Phone: 610-642-8500