Judge to Decide on GM Class Action Status |
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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 lawsuit claims 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.
According to the lawyer representing the car owners, piston slap occurs when the piston isn't the right size for the engine cylinder, causing it to knock against the side of the cylinder. While piston slap may not be a safety defect, the plaintiffs say it causes excessive engine wear and increased carbon emissions. They also say it makes their vehicles less fuel efficient and harder to sell.
"Auto dealers know they are problematic cars. They either won't take them or they do but they offer a significantly reduced resale price" said the lawyer representing car owners.
GM asked U.S. District Judge Joe Heaton to dismiss nine cases in federal court, saying the plaintiffs are still able to drive their vehicles and haven't complained of personal injury or property damage. The owners also aren't claiming that GM refused to repair the vehicles and haven't proved that the alleged defect will hurt the vehicles' resale value, according to GM's court filings.
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Other Automotive Cases of Interest
Commission-based sales positions can be lucrative--if your boss actually pays your whole commission. A class action has been filed against Landers Auto Sales, Inc. and related companies on behalf of Landers salespersons in Arkansas, Tennessee, and Mississippi, alleging that the company bilked them of their commissions, unjustly enriching itself by taking keeping money that should have been paid as commissions.
A national class action has been filed in Illinois against the General Motors Corporation and the Goodyear Tire and Rubber Company. The action is brought on behalf of all U.S. residents who purchased Chevrolet Corvette automobiles manufactured between 1994 and 2004. The Corvette owners claim that the Goodyear tires that came as standard equipment on their automobiles were defective because they allegedly failed at approximately 12,000 miles and were not covered under warranty. The Corvette owners claim that GM and Goodyear's conduct amounts to consumer fraud and fraud by omission and are seeking the replacement cost of the tires as well as damages for inconvenience and injunctive and declaratory relief.
DaimlerChrysler's North American financing arm has tentatively settled class-action lawsuits brought by minority customers in Chicago and New Jersey. The plaintiffs, mainly composed of African Americans and Hispanics, allege DaimlerChrysler discriminated against in their attempts to purchase new vehicles. Florida's laws protect consumers from businesses that would otherwise harm them. The parties have reached a tentative $6.9 million settlement in an action filed against automobile retailer AutoNation, Inc. on behalf of Floridians who allege that, from August 6, 1995, through October 31, 2000, the company failed to deliver correctly signed retail installment contracts in connection with the sale of new and used motor vehicles in violation of Florida's Motor Vehicle Retail Sales Finance and Deceptive and Unfair Trade Practices Acts. To recover under the settlement, you must submit a claim form no later than July 29, 2003.
Radiator problems can stop a vehicle cold. 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 consumer protection laws and its own contracts with GM owners.
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. The parties have reached a tentative $1.725 million settlement in an action filed against Southern General Insurance Company on behalf all persons insured under an automobile insurance policy issued in Georgia by the company who made a claim for damage to their vehicle under their collision or comprehensive coverage for a loss that occurred between June 12, 1997, and February 13, 2002, or under their uninsured motorist coverage for a loss that occurred between June 12, 1999, and February 13, 2002. Though there is no claims deadline at this time, persons 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.
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