Nissan Engine Defect Class Action Settlement Reached

A new settlement could provide repair benefits to Nissan drivers whose vehicles are equipped with what customers say is a defective engine.

Nissan agreed to settle the engine defect class action lawsuit instead of taking it to court in an effort to avoid the costs and risks of further litigation.

Though the settlement presents less risk, court documents indicate that the repair benefits offered to Class Members will cost Nissan around $6 million in total. 

In October 2016, drivers filed the class action lawsuit alleging that certain vehicles possess a defective engine. Allegedly, there are defective parts in the timing chain systems in the engines that can cause the engine valves to have too much slack. This problem then in turn causes the chains to hit other parts of the engine and damage them, according to drivers.

The plaintiffs say that the defect can cause a range of problems, including loud noises, and even catastrophic engine failure that can put drivers and others in danger.

Customers argue that the company violated both federal and Massachusetts consumer protection laws by selling defective vehicles. Allegedly, the company knew of the problem but did not attempt to warn customers or fix the issue.

The plaintiffs also said that the company had breached its contract and express warranty, and was unjustly enriched by the sale of the defective vehicles.

Nissan tried to fight these claims, and moved to dismiss in May 2017. This motion was rejected in 2018, but some claims were trimmed from the engine defect class action lawsuit.

Drivers filed for Class certification in late 2018. Class Members include consumers in Oregon, Texas, North Carolina, Colorado, New York, Maryland, Florida, and New Jersey who purchased certain Nissan vehicles produced in the middle to later end of the last decade. Vehicles included in the proposed Class are the Altima, Quest, Pathfinder, Xterra, and Frontier vehicles.

These consumers may be able to benefit from the proposed Nissan class action settlement. The settlement will not only cover this class action lawsuit, but a separate one filed in the Eastern District of New York over similar issues.

The company has agreed to extend the vehicle warranties from 60,000 miles to 120,000 miles for affected vehicles, along with providing repair reimbursements. Though the total amount of the settlement was not stated, estimates indicate that the total value of repairs and reimbursements for repairs already performed is around $6 million, with each repair or reimbursement worth around $1,500.

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The Nissan drivers are represented by Adam M. Stewart of Shapiro Haber & Urmy LLP, Gary S. Graifman and Jay I. Brody of Kantrowitz Goldhamer & Graifman PC, and Howard Longman and Patrick Slyne of Stull Stull & Brody.

The Nissan Engine Defect Class Action Lawsuits are Duncan, et al. v. Nissan North America Inc., et al., Case No. 1:16-cv-12120, in the U.S. District Court for the District of Massachusetts; and Chiarelli v. Nissan North America Inc., et al., Case No. 1:14-cv-04327, in the U.S. District Court for the Eastern District of New York.

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