Judge rules GM can’t arbitrate engine class action

Update: 

• An Ohio federal judge ruled GM cannot arbitrate claims the automaker sold vehicles with defective engines allegedly engineered to fail. 
• U.S. District Judge Charles E. Fleming cited recent guidance from the 6th Circuit, ruling GM’s actions were “inconsistent with reliance on any potential arbitration right (GM) may have.” 
• Judge Fleming determined GM essentially agreed to waive its right to arbitrate the claims by waiting 20 months after receiving an arbitration agreement to file a motion to compel and then failing to explain the delay.  
• GM also engaged in motion practice by opposing a class certification bid and attempting to toss the plaintiffs’ experts’ testimony and opinions, the judge says.
• Drivers argue GM sold certain vehicles equipped with defective oil systems that caused them to consume excessive oil, leading to engine damage. 

(Nov. 30, 2020)

Drivers in a GM oil class action lawsuit say their Chevrolet Silverado vehicles consumed excessive amounts of oil due to a defective engine.

Plaintiffs Lisa Mae Jennings and Airko Inc. say their 2013 Chevrolet Silverado trucks suffered from excessive oil consumption due to a defect in their engines. The Generation IV Vortec 5300 engines found in these trucks allegedly contain a defect which causes the oil issues — in turn leading to engine damage.

Jennings says she experienced the GM oil defect in her 2013 Chevrolet Silverado vehicle, which she purchased new. Jennings allegedly noticed the oil consumption issue for the first time in 2016, while the vehicle was still under warranty.

Since then, Jennings has reportedly suffered from numerous problems with her engine that all link back to the oil problem.

Over the course of normal operation, Jennings has allegedly suffered from a broken camshaft, failed lifters and rough idle — all of which she contends are a result of the oil defect. Due to these problems, she has reportedly had to replace the camshaft, lifters and spark plugs in her vehicle.

Airko — an Ohio company — allegedly experienced a similar issue with its 2013 Chevrolet Silverado, which was purchased used in 2016.

Mechanics for the company claim to have informed leadership that their truck consumed an “unusually high” amount of oil. Later on, the vehicle’s engine reportedly failed completely. After further inspection, this failure was attributed to a loss of lubricity from low oil levels.

According to the plaintiffs, this issue does not affect only Chevrolet Silverado vehicles. The plaintiffs contend the Chevrolet Avalanche, Chevrolet Suburban, Chevrolet Tahoe, GMC Sierra, GMC Yukon and GMC Yukon XL vehicles all are affected. In fact, the class action lawsuit notes several online forums contain stories of similar GM oil consumption problems.

The GM oil defect allegedly stems from a problems with the piston rings in Generation IV Vortec 5300 engines. These rings allegedly fail to serve their intended purpose of keeping oil in the crankcase of the engine. As a result, oil allegedly migrates past the rings where it can burn or accumulate in the engine’s combustion surfaces.

“[T]he Class Vehicles were engineered to fail,” the GM oil class action lawsuit contends. “GM failed to disclose the truth about these vehicles and failed to remedy the well-established defects in the Class Vehicles that were on the road.”

The plaintiffs claim that GM knew or should have known about the defects in their vehicles’ engines but failed to take steps to remedy the issue or inform consumers.

As a result, consumers like the plaintiffs were reportedly deceived into purchasing the affected vehicles based on false promises and expectations.

The GM oil class action lawsuit contends this deception caused financial harm to consumers who paid more for the vehicles than they were worth.

The plaintiffs seek to represent a Class of Ohio drivers who purchases or leased a Chevrolet Silverado, Chevrolet Avalanche, Chevrolet Suburban, Chevrolet Tahoe, GMC Sierra, GMC Yukon and GMC Yukon XL vehicle. According to the GM oil class action lawsuit, there could be thousands of Class Members.

This is not the first time GM has faced a class action lawsuit over its alleged oil troubles.

In 2019, another plaintiff argued that he and other Chevrolet and GM vehicle owners were harmed by a defect in their engines which caused excessive oil consumption. However, that case was dismissed earlier this month by a federal judge in the Northern District of Ohio.

Although that case was dismissed, plaintiffs’ lawyers in the current case remain confident their claims will succeed in court based on the success of similar allegations.

Have you experienced GM oil issues in your vehicle? Share your experiences in the comment section below.

Plaintiffs and the proposed Class are represented by Mark A. DiCello, Justin J. Hawal, Adam J. Levitt, John E. Tangren and Daniel R. Ferri of DiCello Levitt Gutzler LLC; and W. Daniel “Dee” Miles III, H. Clay Barnett III and J. Mitch Williams of Beasley Allen Crow Methvin Portis & Miles PC.

The GM Oil Class Action Lawsuit is Airko Inc., et al. v. General Motors LLC, Case No. 1:20-cv-02638, in the U.S. District Court for the Northern District of Ohio.

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