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Case ID: 2652 | Consumer Products | 08/26/2003
The parties have reached a $780,000 settlement in an enforcement action filed against manufacturing giant General Electric Company on behalf of New York consumers who purchased new GE dishwashers in 1999. The action alleged that the company convinced consumers to purchase new dishwashers by concealing the availability of a quick, inexpensive repair that would prevent fires in certain recalled models. Eligible claimants should contact the New York State Attorney General's office for information on the settlement.
The action involved an October 1999 recall of 3.1 million General Electric and Hotpoint dishwashers made between 1983 and 1989. The machines have a slide switch problem that poses a fire hazard, and has in fact resulted in dozens of fires. Unlike most product recalls, which offer repairs, replacements or refunds, General Electric allegedly offered rebates of only $75-$125 toward the purchase of a new General Electric dishwasher, and much less for non-General Electric brands. When consumers questioned whether the machines could be repaired, the company allegedly told them that the procedure was too complicated, parts were unavailable, and due to the dishwasher's age, repairs were not possible. While General Electric was telling this to individual consumers, it was allegedly offering its commercial customers an inexpensive repair kit consisting of two crimp-on connectors, instructions and a $15 labor allowance. Allegedly, General Electric even prepared a short video for certain commercial customers showing them how to make the repairs. Because of the company's allegedly misleading statements, many individual consumers bought new dishwashers, spending from $300 to $600 over and above the rebate. Others have continued to use their dishwashers--which pose a fire hazard--because they cannot afford to purchase a new one. The specific dishwashers involved in the 1999 recall are General Electric and Hotpoint dishwashers with the model numbers GSD500D, GSD500G, GSD540, HDA467, HDA477, and HDA487 with a serial number that has a second letter of A,M,R,S,T,V or Z (e.g., BM12345). Class action and other private lawsuits have begun in other states after a judge ruled that the New York action had jurisdiction only for GE dishwasher sales in New York. A national settlement in a California court has recovered $20 settlements for consumers outside New York, which was carved out of the national action. That settlement, approved by a court in September 2003, is under appeal in part over the fairness of the size of the payments. Any consumer still owning a recalled dishwasher that wasn't rewired should stop using the machine immediately. Consumers should contact GE Appliances (800-599-2929) or visit http://www.geappliancerecall.com for a free rewiring or a rebate. 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 Consumer Products Cases of Interest A class action lawsuit seeking hundreds of millions of dollars from Microsoft is scheduled to go to trial in November 2006. The lawsuit recently made its way to the Iowa Supreme Court for the third time. If the trial is successful, thousands of Iowans who bought computers loaded with Microsoft programs since 1994 could get money back. Ashley Peach of Illinois filed a class action suit against Wal-Mart on June 16, 2004, alleging the cashier at Wal-Mart failed to return a $1.39 balance on her gift card.
In the complaint, sometime after Mother’s Day in May 2004, Peach purchased shampoo, conditioner, and other toiletries from the Granite City Wal-Mart, using two separate $10 gift cards to pay for the purchase that totaled $18.61. A proposed class action filed in Los Angeles federal court claims 300,000 lawyers and law students have been ripped off by the popular BAR/BRI bar review courses. The suit alleges co-defendants BAR/BRI and test-preparation giant Kaplan agreed to "a per se illegal market division." Under the alleged pact, BAR/BRI backed out of the LSAT preparation business and Kaplan agreed not to enter the bar-review course market. A class action lawsuit filed in Madison County Circuit Court will now be arbitrated, as a result of an appellate court decision. The appeals court has voted to Verizon's motion to compel arbitration and stay judicial proceedings. The suit arises out of a dispute over cancellation fees between Verizon and named plaintiff Dawn Zobrist. When Zobrist became a Verizon customer in July 2001, she entered into a two-year service plan. Zobrist cancelled service in March 2002, and Verizon billed her $175 for a cancellation penalty which Zobrist claims she paid "under protest." The suit seeks financial and other damages. A class action lawsuit has been filed in the state circuit court in Collier County, Florida against Orange Tree Utility Co. The lawsuit is brought on behalf of water customers of Orange Tree in the Naples area, who claim that the water fails to meet safe water standards, has an unpleasant appearance, taste and odor, and may cause health problems. The suit alleges that Orange Tree Utility Co. has consistently ignored consumer complaints about the quality of the water and seeks damages for medical bills, property damage and the cost of extra water filtration devices. Notebook computers are supposed to increase productivity, not reduce it. A nationwide class action has been filed against computer giant Hewlett-Packard, Inc. on behalf of purchasers of Pavilion Notebook computers who allege that the LCD displays in their computers are inherently defective, and that the company has taken no action to remedy the problem. |
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