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Daewoo Owners' Lawsuit Certified

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Case ID: 4514 | Automotive | 11/03/2005

Kanawha, West Virginia County Circuit Judge Paul Zakaib certified a class-action lawsuit against C&O Motors Inc., Love Daewoo Inc. and Saint Albans Import Inc.

The class involves anyone who bought a new Daewoo automobile from C&O Motors between Feb. 1, 2002, and Aug. 2, 2002. Trial is set for Jan. 23, 2006.

The lawsuit accuses the defendants of "unfair and deceptive acts or practices" because they allegedly did not tell class members about financial problems of Daewoo Motor America Inc. (DMA).

In his order, filed Oct. 11, Zakaib said the plaintiffs met the requirements for forming a class action. According to the order, Daewoo's financial problems had an effect on the value and enforceability of the Daewoo manufacturer's express warranties that had been the basis for a "bargain" purchase of new Daewoo cars.

The plaintiffs said they were not told Daewoo was in bankruptcy and that even though General Motors was purchasing the company's core assets, the deal did not include DMA, which sold Daewoo vehicles in America and was responsible for honoring warranties.

"Here, it would be highly inefficient for class members to pursue each claim individually especially when considering the overarching issues as to defendants' knowledge and conduct in failing to disclose the material facts concerning DMA's financial difficulties and exclusion from the GM purchase," Zakaib said in his order.

"Conversely, by certifying a class, a determination can be made in a single action as the whether the plaintiff and class members purchased an inferior or different product that what they bargained for because of defendants' failure to disclose the aforementioned material facts. As such, class certification is the superior method and is appropriate method here under (state code)."


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