Mitsubishi Fuso Truck Engine Defect Class Action Settlement

A proposed $17.5 million settlement has been reached in a class action lawsuit against Mitsubishi Fuso Truck of America Inc. (MFTA) that alleges the automaker sold certain trucks with defective emissions control systems.

In 2014, Q+ Food LLC, a Florida seafood supplier, filed the class action lawsuit, alleging that the BlueTec engines installed in Mitsubishi Fuso commercial Canter trucks were defective.

According to Mitsubishi, BlueTec is an emissions control technology that utilizes selective catalytic reduction to reduce nitrogen oxide emissions for clean, efficient operation. MFTA marketed the BlueTec engines as a better alternative to the systems installed by other truck engine manufacturers to comply with new EPA regulations.

However, according to the plaintiffs, MFTA’s representations about the engines were wrong. The class action lawsuit claimed the BlueTec technology rendered the trucks defective and caused operational failures that resulted in the engines unexpectedly shutting down for no apparent reason.

Specifically, the engine defect is alleged to put “extreme and harmful” pressure on the engines, resulting in regular and catastrophic failures of the engine, including power loss, stalling and failure to restart which in turn requires maintenance, potential downtime and loss of business while the truck is out of service.

Under the terms of the defective truck engine settlement, MFTA has agreed to pay $17.5 million to go towards payments for valid claims between $250 up to $10,000, as well as a court-approved incentive award to Q+ Foods in the amount of $30,000 and $15,000 each to the other named plaintiffs: Lawrence Barton d/b/a Legend Meats LLC, Encore Piano & Organ Moving LLC, All American Moving and Storage Delivery LLC, and West Lumber & Building Supply.

The settlement also provides that a portion of the settlement fund goes towards claims administration costs and attorneys’ fees.

In addition, MFTA has agreed to a fair market value Buyback Option and Trade-in Credit for certain affected vehicles. The company has also agreed to claim a purchase credit for the purchase of a new Mitsubishi Fuso Canter truck. This purchase credit will be directly financed by MFTA and will not be paid out of the settlement fund.

MFTA denies all of the material allegations made by plaintiffs and denies any wrongdoing or liability of any kind. Among other things, MFTA contends that there is no defect in the trucks and that it has not violated any law.

Class Members who wish to exclude themselves or object to the terms of the settlement must do so by Jan. 26, 2017.

Who’s Eligible

The settlement Class includes all current and former owners or lessees of model year 2012-2016 model year Mitsubishi Fuso Canter trucks.

Potential Award

Varies.

Eligible Class Members who submit a timely and valid claim are entitled to receive a share of the net settlement fund according to the following guidelines:

1. No Qualifying Repairs during their ownership or lease are eligible to receive (but not guaranteed) $250 for that vehicle.

2. 1-3 Qualifying Repairs during their ownership or lease are eligible to receive (but not guaranteed) $2,000 for that vehicle.

3. 4-6 Qualifying Repairs during their ownership or lease are eligible to receive (but not guaranteed) $4,000 for that vehicle.

4. 7 or more Qualifying Repairs during their ownership or lease are eligible to receive (but not guaranteed) $6,000 for that vehicle.

“Instead of seeking a payment as set forth above, each eligible Settlement Class Member whose Subject Vehicle experienced at least one Qualifying Repair shall have the option, but not the obligation, to submit proof to the Settlement Administrator documenting consequential losses up to a maximum of $10,000 experienced by the Settlement Class Member as a consequence of Qualifying Repairs.”

According to the proposed settlement, such losses shall include only the following out-of-pocket expenses, to the extent not previously reimbursed:

• Cost of the Qualifying Repair itself
• Costs of towing
• Replacement truck rental
• Vehicle retrieval
• Storage for a disabled vehicle
• Travel and hotels

In the event the settlement Class Member seeks payment pursuant to this optional prove-up process, the settlement Class Member cannot seek payment under 1-4 above.

Payments to eligible claimants, whether for 1-4 above or for proving up to $10,000 in out-of-pocket expenses, may be adjusted pro rata (up or down) depending on the number of eligible claims filed and the total amount of the settlement fund available to pay claims.

Additionally, MFTA has agreed to a fair market value Buyback Option and Trade-in Credit for vehicles with nine or more Qualifying Repairs (regardless of who owned the vehicle when it occurred), has a mileage of at least 110,000 miles on or before the date that the preliminary approval order is entered, and has not had emissions recall C1008400 performed.

Fair market value of the cab and chassis will be determined based on the average wholesale Black Book value on the effective date of the settlement. Upfitted body components will be compensated at a flat rate of $1,500 per truck.

Alternatively, the settlement Class Member may elect to not turn in the upfitted body components and will be compensated actual costs of up to $1,500 for the costs and labor associated with the removal or transfer of such upfitted body components from the subject vehicle to a different truck. Buyback amounts and payments related to upfitted components are paid from the settlement fund.

If the buyback amount offered is accepted by the settlement Class Member, he/she can also claim a purchase credit for the purchase of a new Mitsubishi Fuso Canter truck.

The purchase credit varies, depending on the Class of vehicle purchased:

• Class 3 truck: $2,000 purchase credit
• Class 4 truck: $3,000 purchase credit
• Class 5 truck: $5,000 purchase credit

In contrast to all other consideration paid to the settlement Class Members, this purchase credit is being financed by MFTA, and is not being paid out of the settlement fund. Full details and requirements for the buyback option and trade-in credit are in Section 4 of the Settlement Agreement.

“Qualifying Repair” means a repair or replacement outside of the regular service intervals, performed on or before Oct. 26, 2016, relating to emissions-related engine and after-treatment system issues, as well as transmission issues in the affected Canter trucker. Repairs or replacements made due to a recall or service campaign are not considered a Qualifying Repair.

“Multiple repairs or replacements relating to emissions-related engine and after-treatment system issues, as well as transmission issues in the subject vehicles during a single service visit count as a single Qualifying Repair.”

Note: The Court has not decided whether to finally approve the settlement. Relief will be made available only after the Court approves the settlement and any appeals are resolved.

Proof of Purchase

Along with your Claim Form, you must attach copies of repair orders (or similar itemized invoices) and proof of payment by June 25, 2017. (Please do not send originals).

Acceptable proof of payment includes a receipt showing payment, cancelled checks, credit card statements, credit receipts, or other documents showing payment.

Claim Form

CLICK HERE TO FILE A CLAIM »

Claim Form Deadline

6/25/2017

You may file a Claim for each subject vehicle you owned or leased. If you have questions about how to file your claim, contact the settlement administrator at 877-336-5241.

Case Name

Q+ Food LLC, et al. v. Mitsubishi Fuso Truck of America Inc., Case No. 3:14-cv-06046-DEA, in the U.S. District Court for the District of New Jersey

Final Hearing

3/27/2017

UPDATE: The Mitsubishi-Fuso Truck settlement received final approval from the court on March 27, 2017.  Claims will not be paid until after the claim deadline of June 25, 2017.  Let Top Class Actions know when you receive a check in the comments section below or on our  Facebook page.

Settlement Website

www.TruckEngineSettlement.com

Claims Administrator

Q+ Food, LLC v. MFTA Settlement Administrator
c/o Kurtzman Carson Consultants (KCC)
PO Box 43034
Providence, RI 02940-3034
1-877-336-5241
Email: info@TruckEngineSettlement.com

Class Counsel

James C. Shah
Natalie Finkelman Bennett
SHEPHERD FINKELMAN MILLER & SHAH LLP

Robert W. Murphy
MURPHY LAW FIRM

Michael D. Donovan
DONOVAN LITIGATION GROUP LLC

Marc A. Goldich
AXLER GOLDICH LLC

Defense Counsel

Alexander P. Imberg
SQUIRE PATTON BOGGS US LLP

William M. McSwain
Michael P. Daly
Jennifer B. Dempsey
DRINKER BIDDLE & REATH LLP