A judge delayed a decision on a class action lawsuit involving older Honda Civic Hybrids.
Honda’s hybrid mileage headaches may soon get a lot worse as a California judge considers whether to accept, reject or revise a class action settlement in a case filed by owners frustrated that their Civic Hybrid models failed to get nearly the mileage the maker original claimed.
The attorneys-general from five states, including California and Texas, have asked for more time to consider a proposed settlement that would provide owners with as little as $100 in cash – and a discount on another Honda – while plaintiffs’ attorneys would pocket millions.
The delay was sought in the wake of a verdict in a separate California case in which Heather Peters was awarded $9,867 to cover higher fuel costs and a lower trade-in value on her 2006 Civic Hybrid. A former corporate attorney, Peters took her case to small claims to protest the proposed class action settlement – and to show other owners there were alternatives to the proposed settlement.
The decision to seek a delay in the classic action lawsuit came just days before a court-mandated deadline, prompting Superior Court Judge Timothy Taylor to asked why extra time was needed. Noting other opponents had been able to file objections on time, he asked the representatives from California, Texas, Massachusetts, Iowa and Washington, “why you can’t.”
But he subsequently agreed to an extension until February 29.
The settlement has raised plenty of opposition already. As with Peters, other owners have argued that the Civic Hybrid fell markedly short of its original mileage numbers, resulting in significantly higher fuel bills and the prospect that trade-in prices would be negatively affected. But the automaker would provide the 200,000 owners covered by the settlement with just $100 to $200 in cash and coupons worth from $500 to $1,500 towards the purchase of another Honda product.
Attorneys for the plaintiffs would, in turn, collect $8.5 million.
Peters has been trying to encourage other Civic Hybrid owners to follow her example, setting up a website specifically to show how to fight Honda in small claims court – where the playing field is considered more level because companies like Honda are usually barred from bringing in their high-powered lawyers.
Honda will appeal the small claims action and, in the meantime, is pressing to get the class action settlement approved.
“We continue to believe that the class action settlement pertaining to the fuel economy of some early-model Civic Hybrid vehicles represents a very good resolution for our customers,” said a company statement. “We look forward to a discussion with the State Attorneys General concerning the benefits that our customers will receive from the settlement.”
The maker continues to insist that while mileage likely does not live up to its original claims it had to post those over-optimistic numbers because they were provided by the EPA.