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Case ID: 3232 | Automotive | 10/07/2004
63 different class actions have been filed against automotive paint manufacturers on behalf of all persons and businesses purchased automotive paint from January 1, 1993 to at least December 31, 2000. The action alleges that the companies conspired together in violation of U.S. antitrust laws to fix automotive paint prices across the U.S. The action seeks unspecified compensatory and triple punitive damages.
Automotive refinishing paint refers to paint products which are applied to motor vehicles subsequent to the initial manufacturing process. Automotive refinishing paint is used primarily in collision repair facilities and includes base coat paint, clear coat paint, single-stage finish, primer, thinner, and hardener. Automotive refinishing paint differs from original equipment manufacturing (OEM) paint systems in both its chemical composition and application. Because of the extremely high temperatures achieved during the application and hardening process, OEM paint systems are suitable only for bare car bodies, whereas automotive refinishing paint is applied and cools at much lower temperatures. The plaintiff alleges the defendants and their co-conspirators conspired to fix, raise, maintain, and stabilize prices for automotive refinishing paint above the level where it otherwise would have been in violation of Section 1 of the Sherman Anti-Trust Act. The named defendants are PPG Industries, Inc., E.I. DuPont de Nemours & Company, BASF Coatings AG, BASF Corporation, Akzo Nobel Car Refineries B.V., and Akzo Nobel Coatings, Inc. The 63 different actions have been consolidated under MDL 1426. In 2003, Akzo settled its part of the litigation. The United States Department of Justice subpoenaed documents from the defendants in connection with a grand jury that has been convened with respect to automotive refinishing paint. Each defendant has issued a public statement acknowledging the commencement of the Department of Justice investigation. A federal appeals court has recently ruled that the foreign corporations are subject to worldwide service of process and personal jurisdiction in the action based on their contacts with the entire United States, not just the forum state. This constitutes a substantial pretrial victory for the plaintiffs. Approximately $1 billion of automotive refinishing paint products are sold in the U.S. each year. 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 theory of diminished value asserts that buyers choosing between two otherwise equal vehicles will select one that has not been previously damaged and repaired, even where the repairs to the other vehicle were first-rate. On July 10, 2003, the court gave final approval to a settlement, apparently valued at $825,000, in a class action on behalf all persons insured by an automobile insurance policy issued in Georgia by American Manufacturers Mutual Insurance Company, American Protection Insurance Company, or Lumbermen's Mutual Casualty Company and who made a claim for damage to their vehicles under their collision, comprehensive or uninsured motorist coverage over a specified time period. Though there is no claims deadline at this time, persons who are eligible to take part in the settlement who have not received a notification letter should act as soon as possible to alert the company of their eligibility. A U.S. District Court judge has granted class-action status in a lawsuit against three defendants in the Thaxton bankruptcy case. A class action has been filed against Shell Oil Company, Motiva Enterprises, LLC, and several other affiliated companies on behalf of persons who purchased sulfur-tainted gasoline from Florida gas stations that were supplied by Shell Oil or Motiva during May 2004. The gasoline causes fuel gauges to stop functioning, and may cause other unknown problems. Auto leasing has exploded in popularity in the last few years, yet many consumers don't understand how leasing really works, or how to determine if it is right for them. A Florida class action has been filed against auto financing company Mitsubishi Motors Credit of America, Inc., on behalf of vehicle lessees who allege that the company charged them "taxes" that were actually just undisclosed fees to cover wear and tear, and excess mileage on the vehicles, in violation of Florida consumer protection laws and the federal Consumer Leasing Act.
When you make an insurance claim, you can bet the company would really rather not pay it. The parties have reached a tentative $1,785,000 settlement in an action filed against American Express Property Casualty Companies, American Express Assurance Company, and IDS Property Casualty Insurance Company on behalf of all persons who, during the period from November 6, 1992, to September 25, 2003, were injured in automobile accidents while a driver or passenger in an automobile insured under one of the companies’ auto insurance policies, and whose medical bills were not paid in full up to the policies’ limits. The settlement includes any medical providers who received an assignment of rights to the insured persons’ rights regarding claims for payment of medical expenses. Claim forms must be postmarked by March 2, 2004, to be considered valid. A federal judge in Oklahoma will soon decide whether to grant class action status to lawsuits that claim General Motors (GM) sold pickups and sport utility vehicles with defective engines, the attorney representing car owners.
The lawsuit says that GM produced as many as 800,000 pickups and SUVs between 1999 and 2002 with a noisy defect referred to as piston slap, according to an attorney for the plaintiffs. |
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