Heather Peters with her 2006 Honda Civic Hybrid prior to last month's small claims trial..

After taking on Honda and winning a judgment over the inflated mileage claims for her Honda Civic Hybrid, a Southern California woman now hopes to derail a class action suit that would provide other owners just a fraction of the compensation she was awarded in small claims court.

Honda has been under fire for advertising significantly better fuel economy than it allegedly knew motorists would get with the Civic Hybrid sold between 2003 and 2009.  A proposed settlement covering 200,000 owners is now waiting for a final decision by Superior Court Judge Timothy Peters.  Until recently, it appeared likely the agreement would be accepted, but Peters shook things up last month when she decided to go it alone using the small claims process.

The former corporate attorney – one of 1,700 Honda hybrid who opted out of the class action process — was awarded $9,867.  By comparison, the proposed settlement would provide owners $100 to $200 and a coupon good for a discount if they returned to buy another Honda.

That has prompted some critics to contend the settlement was really a sweetheart deal for Honda – which has a chance of getting owners to return to its showrooms – and plaintiff attorneys who would be awarded $8.5 million in fees.

“It is appalling that a class action lawsuit on behalf of the people will result in a $200 rebate,” wrote Honda owner Gregory De Mattia in a court filing, “when lawyers will receive over $8 million. Where is the equity in that?”

Peters’ victory in small claims court has encouraged more opposition to the proposed class action settlement – even though Honda intends to appeal her victory.  She has been actively pushing to scuttle the deal, the Associated Press noting she has renewed her legal license and has been working on the case full-time.

The terms of the settlement actually would permit Honda to back out since it set a trigger if at least 1,500 hybrid owners opted out of the agreement, but Honda has referred to it as a “very good resolution,” and appears to be hoping the courts will sign off on the settlement.

The controversy stems from the claims the Japanese maker made about the Civic Hybrid, advertising suggesting it got over 50 mpg and would “sip” gas.  Honda officials have acknowledged the gas-electric model typically delivered less than promised but insisted it was only using the numbers required by the EPA, which rates vehicle mileage.  Government officials have separately noted that they only set the maximum figures a manufacturer can use, however, and that a lower number may be posted on the vehicle’s Munroney window sticker or used in advertising if a carmaker believes the rating is excessive.  In the competitive automotive market that is rarely if ever done, however.

Judge Taylor is expected to rule on the case today.