SEATTLE, Feb. 16, 2012 PRNewswire/ -- Today, attorneys
representing owners of 2006-2008 Honda (NYSE:HMC) Civic Hybrids
applauded five states that have asked the judge overseeing a
proposed class-action settlement to grant the states more time to
weigh the fairness of the agreement. Many class members have
already objected that the proposed settlement is wholly inadequate
in addressing the safety concerns and economic losses associated
with the vehicles.
The proposed settlement would pay consumers less than 3 percent
of the expected cost to replace the faulty hybrid battery, court
papers state, while attorneys pushing for the settlement, in turn,
have asked the court for nearly $8.5
million in fees.
Those opposing the settlement are upset that the agreement would
pay each owner just $100 and provide
a coupon good only for the purchase of a new Honda or Acura,
instead of requiring or compensating for the repair of the
defective hybrid system, which costs at least $3,500 per auto.
"This settlement simply provides no meaningful benefit to
thousands of Civic Hybrid owners whose cars are equipped with
defective hybrid drive systems," said Thomas Loeser, a lawyer at
consumer-rights law firm Hagens Berman and attorney for a group of
Honda owners objecting to the settlement. "If I were a 2006-2008
Civic Hybrid owner, I would be angry with this proposed settlement,
and would complain bitterly to anyone who would listen."
According to court filings, the class action was originally
filed to represent those who were experiencing lower
miles-per-gallon efficiency than Honda was touting in its
advertising.
During the case, a second and more serious claim appeared;
prematurely deteriorating Integrated Motor Assist (IMA) batteries,
which are the core of the hybrid system. These defective IMA
batteries cause severe, erratic power reductions, which render the
Civic Hybrid unreliable and unsafe, in addition to causing severe
reductions in fuel efficiency, court documents state.
Court documents reveal that Honda and the attorneys proposing
the settlement agreed to include a release of the IMA battery issue
– absolving Honda of any liability for the problem – in exchange
for an additional $100 per claimant
and a $500 coupon used toward the
purchase of a new Honda or Acura.
"What is puzzling is that it appears the attorneys proposing the
settlement agreed to this deal without taking a single deposition
to determine the significance of the battery issue," Loeser
added.
Though it appeared little additional work was done in adding the
IMA battery defect release, attorneys proposing the settlement
increased their fee request from $2.95
million when they first attempted to settle the
false-advertising claim to $8.474
million.
Court documents show that Honda was aware of the IMA problem and
issued mandatory software updates in response. But the software
updates did not repair the problems associated with the faulty IMA
batteries, and in fact were designed to extend the life of the IMA
battery at a tremendous cost to the safety and efficiency of the
cars, claims say.
According to settlement objectors, those updates caused the cars
to use the battery and electric engine less, and the gas engine
more, making the drive system too weak to operate safely and
further eroding fuel economy and performance.
"The net result of the software update is that Hybrid owners at
best paid about $4,000 more for a car
that gets even lower gas-mileage efficiency than the conventional
gasoline version of the Civic," Loeser stated. "For most of these
owners, they are also now saddled with a car that is likely unsafe
because it cannot be relied on to move when you step on the
gas."
"We have heard from Civic Hybrid owners from across the country
who report trying to make a left turn across traffic, and not
having the acceleration they expected. To me that sounds like
playing automobile Russian roulette," Loeser added.
There are approximately 95,000 owners of 2006-2008 Honda Civic
Hybrids equipped with what Honda admits are prematurely
deteriorating IMA batteries, court documents show.
Under terms of the proposed settlement, Honda would pay a
maximum of $9.5 million for the
battery issue if every owner claimed the $100 award. Consumers claim the actual repair of
the issue for the 95,000 owners will cost more than $332 million.
Attorneys general in California, Iowa, Massachusetts, Texas and Washington have asked San Diego County
Superior Court Judge Timothy Taylor
to give the states until February
29th to review the settlement. Judge Taylor has the ability
to approve or reject the settlement.
Consumers who would like to learn more about the proposed
settlement can contact Hagens Berman
by calling (206) 623-7292 or by emailing
HondaClass@hbsslaw.com. More information is also available at
www.hbsslaw.com/honda-civic-hybrid
About Hagens Berman
Seattle-based Hagens Berman
Sobol Shapiro LLP is one of the top class-action law firms in the
nation, with offices in ten cities throughout the United States. Founded in 1993, the firm
represents plaintiffs in class actions and multi-state, large-scale
litigation that seek to protect the rights of investors, consumers,
workers and whistleblowers. More general information about the firm
is available at www.hbsslaw.com.
Media Contact: Mark Firmani,
Firmani + Associates Inc., 206.443.9357 or mark@firmani.com
SOURCE Hagens Berman