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Case ID: 2574 | Automotive | 05/25/2006
Several class actions have been filed against auto manufacturer General Motors Corporation on behalf of GM vehicle owners who allege that the company has used an inherently defective extended life engine coolant known as Dexcool since 1996, in violation of state and federal consumer protection laws and its own contracts with GM owners. The actions variously seek unspecified compensatory and punitive damages.
The action alleges that Dexcool fails to protect engines from corrosion and causes a rusty sludge to form, clogging radiators and heater cores, damaging water pumps and destroying gaskets. For vehicles manufactured in 1996, GM allegedly warranted that the coolant could remain in the vehicles for five years or 100,000 miles, whichever came first. From 1997 on, the warranty was allegedly extended to 150,000 miles. One of the class actions--the one filed in Missouri--seeks certification of a national class. The named plaintiffs in that action--Michael Gutzler, Herbert Jones, and Karen Barton--contend that GM has refused to repair their vehicles or pay for the repairs. The action seeks unspecified damages for breach of warranty under the federal Magnuson-Moss Act. Because warranty laws differ slightly from state to state, the auto owners have hedged their bets. They also have filed class actions in New York, California, Illinois and Texas seeking certification on behalf of consumers in those states. The owners will fall back on those class actions if national certification is not granted in the Missouri action. The chemicals in antifreezes are inherently corrosive, so manufacturers must include an anti-corrosive agent in the solution. Historically, manufacturers used inorganic salts like phosphates, borates and silicates to inhibit corrosion. Allegedly, in 1996, GM decided to begin using a new organic acid technology known as "OAT" to prevent corrosion in radiators. Allegedly, it is this technology that is found in Dexcool coolant that is causing the reported problems. Because GM allegedly provides a 36,000 mile warranty, and the corrosion problems often do not manifest themselves until after that warranty has lapsed, many GM owners have allegedly been left with large out-of-pocket expenses related to radiator and coolant system repairs. In May 2003, Automotive Cooling Journal reported that "cooling systems filled with OAT are extremely vulnerable to problems triggered by low coolant levels and trapped air." GM has allegedly alerted mechanics that vehicles operated for 15,000 to 20,000 miles with low coolant levels may be susceptible to the formation of a rustlike material in the cooling system. GM has sold more than 34 million vehicles with Dexcool antifreeze in them since 1996. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Automotive Cases of Interest The parties have reached a settlement apparently valued at $6.5 million in a 38-state action filed against Ford Motor Credit Corporation on behalf of Ford and Lincoln Mercury “Red Carpet” lease customers who allege that the company overcharged them for early lease termination fees between 1991 and 1995. Persons eligible to take part in the settlement should contact the settlement claims administrator for more information. Several class actions have been filed against financial services company Washington Mutual, Inc., (NYSE: WM) and certain of its officers and directors by stockholders who purchased the company's common stock between April 15, 2003, and June 28, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. An undependable insurance company seems like a contradiction in terms, or is it? The parties have reached a tentative settlement in an action filed against Pacific Pioneer Insurance Company on behalf of all persons who purchased a Pacific Pioneer automobile insurance policy in California between December 18, 1996, and September 27, 2003, and who were charged a reinstatement fee after their policies were canceled for alleged non-payment of premium even though the policies were paid-up at the time the notice of cancellation was mailed. Class members must submit a signed, written request for reimbursement of reinstatement fees paid following a notice of cancellation during the stated period postmarked no later than September 27, 2003, to take part in the settlement. The class has been certified in a nationwide action filed against DaimlerChrysler Corporation on behalf of all owners of 1996 and 1997 Chrysler Town & Country’s, Chrysler Minivans, Plymouth Voyagers, Plymouth Grand Voyagers, and Dodge Caravans, who allege that the front-passenger airbags in these vehicles deploy with excessive force in low-speed accidents, possibly injuring children or small adult passengers. Three lawsuits have been filed in Superior Court by Formula One fans angry over the decision to run the U.S. Grand Prix with only six cars. The class has been certified in an action filed against insurance company Farmers Group, Inc., on behalf of all Nevada automobile insurance policyholders of Farmers Insurance Exchange who submitted a first party claim for vehicle theft or property damage, whose vehicle was declared a total loss as valued by CCC Information Services, Inc., or its predecessor Certified Collateral Corporation, and who were paid the valuation amount by Farmers between August 5, 1992, and March 31, 2004. Persons eligible to take part in the action should contact the attorneys for the class for more information.
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