Search
Search through the thousands of lawsuits, complaints and recalls on our site.

Unlikely Payoff in Rejected Isuzu Settlement

Report Fraud
Case ID: 4481 | Automotive | 10/13/2005

Philadelphia Common Pleas Judge Mark I. Bernstein rejected a proposed settlement of a tentative class action stemming from the recall of roughly 162,000 Isuzu SUVs due to defective brake systems.

In his recent nine-page order in Parker v. American Isuzu Motors Inc., Bernstein argued that certain requirements of the proposed settlement -- such as that class members would need to produce a police report that supported their claim in order to receive compensation -- might cause plaintiffs undue difficulty.

He also called attention to the fact that the proposal only guaranteed a total payment by Isuzu of $300,000.

"Since the proposed settlement abandons most claims and clearly minimizes recovery to class members and maximizes the difficulty of even submitting a claim, the proposed settlement fails to be within the parameters of a reasonable settlement," Bernstein wrote.

According to Bernstein's order, the Parker class action was filed in September 2003 and sought to include all people in the United States who leased or purchased a 1998 or 1999 Isuzu Rodeo or Amigo and wound up paying money due to a car accident caused by the defective brake system.

"Five years after the vehicles were first marketed the defendant issued a recall notice stating that as a result of the brake system, drivers 'may encounter extended stopping distances,'" Bernstein wrote. "The notice further advised: 'This could lead to a crash.'" Over 161,927 Amigos and Rodeos were recalled.

The settlement proposal requires class members to submit multiple sworn statements and documents before receiving a payment, according to the order. Compensation would range from $75 to $1,750, and the named plaintiffs -- of which there are two listed on the common pleas docket -- would receive payments of $3,000 apiece.

"A defective braking system could easily cause the owner of a vehicle to be involved in more than one accident," Bernstein wrote. "Likewise, if the vehicle had been sold one or more times prior to the recall, damages could have been sustained by multiple owners of the same vehicle. Nonetheless, the proposed settlement provides for a single payment per vehicle and a single payment per owner. No system is provided for resolving conflicts among multiple claimants for the same vehicle."

In order to be eligible for minimal compensation under the proposal, he continued, class members would have to provide a sworn statement that discloses details of the accident and weather conditions on the day it occurred, as well as an explanation of out-of-pocket losses incurred. In addition, claimants also need to present a sworn statement of a passenger present during the accident in which it is asserted that the accident was caused by brake failure, according to the order.

And finally, the claimant would need to produce documentation of out-of-pocket expenses stemming from an accident, such as a canceled check for payment of an insurance deductible or a bill for auto body repair work.

"Upon receipt of all these proofs and sworn statements, the claimant will receive a grand total of $75. While it is extremely unlikely that any significant number of class members will undergo the difficulties and aggravation to obtain the documentation needed to receive $75, it is a virtual certainty that only a tiny fraction, if any, of the 161,000 potential class members will comply with the additional burdensome requirement to obtain any greater recovery."

In order to obtain compensation of more than $75 under the proposal, Bernstein explained, a class member would have to go through the added step of obtaining a police report that indicates that the accident was caused by a brake failure.

In closing, Bernstein also noted that under proposal, Isuzu would have reserved the right to withdraw from the settlement if 75 class members -- .04 percent of the class -- chose to opt out.


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

If you fall behind on your car payments, California law allows the lender to repossess your car without any notice. A class action has been filed against Nissan Motor Acceptance Corporation on behalf of Californians who had auto loans with the company and had their autos repossessed and sold at auction, leaving them with deficiency judgments to pay even though they lost the auto.
 
Federal credit and banking laws prohibit credit providers from discriminating based on ethnicity, national origin, or race. The parties have reached a tentative settlement in a nationwide action filed against General Motors Acceptance Corporation on behalf of African Americans who allege that, as a result of company policies, dealers routinely charged black consumers higher interest rates on auto loans than whites with similar financial histories in violation of the federal Equal Credit Opportunity Act. Persons eligible to take part in the settlement should contact attorneys for the class for more information.
 
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.
 
If a fee is properly paid by a business owner, it may be wrong for the business to pass that fee on to consumers. The class has been certified in an action filed against 636 Texas auto dealerships on behalf of certain car buyers who purchased cars after September 1, 1995, and were forced to pay "dealers inventory tax" to the dealerships in violation of the Texas Deceptive Trade Practices Act. The action seeks unspecified compensatory and punitive damages.
 
Many people now leasing autos are overpaying because they didn't know how to get a good deal - or how to recognize a bad deal. A Florida class action has been filed against auto financing company Chase Manhattan Automotive Finance Corporation 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.
 
A national class action has been filed in South Carolina against the Kubota Tractor Company. The action is brought on behalf of all U.S. residents or entities (except those residing in Louisiana) who have purchased a Kubota M-8200 or M-9000 tractor within 3 years of February 3, 2004. The action alleges that these tractors contain defective clutch discs and seeks the rescission of the sales of the defective tractors, or in the alternative, the repair and replacement of the clutch discs at no charge to the class members. The action is brought under the Uniform Commercial Code, which is recognized in all states except Louisiana and the laws of negligence.
 
Become a LawCash Member - FREE!
'Find Money' E-Book
Weekly Email Alerts




privacy policy
YouNewz Beta
IT'S FREE

Report

Report Newz and easily upload your own newzworthy photos from your cell phone or computer to the web.

Share

Quickly share your photos with family, friends, co-workers, or the world with your own Newzpaper.

Read

Instantly find Newz and photos from other YouNewzers and read other YouNewzers Newzpapers.
 
Class Action Lawsuit Center || Product Recall Center || Consumer Complaint Center || About LawCash Link Exchange
Privacy Policy || Legal Policies || Terms & Conditions || Website Advertising Policy || Site Map || Top Lawsuits
LawCash® is a service of nola3, llc
© 2000 - 2008 Copyright. All rights reserved nola3, llc.

[ Home ]
LawCash
login
Justice is a click away.