Ford Wins Summary Judgment in Defective Power Steering Class Action

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

A California judge on Thursday dismissed several plaintiffs’ claims in a class action lawsuit accusing Ford Mortor Co. of concealing a power steering defect in its Ford and Fusion cars, saying the plaintiffs would not be able to prove damages since the vehicles’ systems have since been replaced.

U.S. District Judge Lucy H. Koh handed down the ruling on February 16 on claims brought by Ford Fusion owners William Philips, Jaime Goodman and Alison Colbum, stating the plaintiffs’ presented theories of damages that were detrimental to their claims.

Those claims included benefit-of-the-bargain damages and out-of-pocket damages resulting from the alleged power steering defects in their vehicles and were based on Ford’s reported concealment of the defect that put the safety of drivers at risk, court documents say.

“Plaintiffs have conceded that they have no admissible evidence to prove damages,” Judge Koh said. “Additionally, because damages are an essential element of each of plaintiffs’ claims, plaintiffs also concede that the damages issue alone is sufficient to justify granting the motion for summary judgment in its entirety.”

Judge Koh went on the say that if the plaintiffs had cited any evidence demonstrating damages, either by requesting leave to present a new expert damages report or by citing non-expert evidence on individual claims, they would have been able to survive summary judgment.

“Plaintiffs evidently would prefer to appeal the court’s grant of summary judgment rather than either file a motion for Rule 23(f) review of the class certification order or litigate plaintiffs’ individual claims,” the judge said. “The court’s order denying the motion for leave to file a renewed class certification motion did not compel plaintiffs to concede the issue of damages. It was plaintiffs’ decision to concede the issue of damages on summary judgment and to forfeit their individual claims.”

This latest decision from Judge Koh is another blow for the California plaintiffs who contend that if the power steering defect had been highlighted, they wouldn’t have purchased the Ford vehicles.

The Ford power steering defect was originally filed as a proposed nationwide class action in 2014, after owners complained about their cars suddenly losing power steering while driving. The 2010-2014 Ford Fusion and 2012-2014 Ford Focus cars allegedly have defects in the sensors and steering gear assemblies that cause failures of the electronic power assisted steering (EPAS) systems.

Drivers that encountered the defect would have to increase steering effort and were suddenly unable to turn the vehicles, court documents said. The plaintiffs say Ford has known about the problems for years, problems that can cost owners $2,000 for repairs, especially when the steering problems typically occur shortly after the warranties expire.

However, in December, the plaintiffs were dealt a major hurdle in the case when Judge Koh rejected their motion to certify three California classes on grounds certain claims contained in the lawsuit were without merit because Ford had ordered a recall to fix power steering problems, leaving injunctive relief unnecessary and baseless.

The judge also noted her decision to deny class action certification was because members of the lawsuit could not prove they all were told the same things about how the EPAS systems worked.

Riding on the momentum of that ruling, Ford pressed the Court to dismiss the case in its entirety, arguing that the plaintiffs failed to prove they suffered damages as a result of the automaker’s alleged concealment of the power steering defect.

But the plaintiffs readily fought back, urging Judge Koh to reject Ford’s bid for dismissal, maintaining that Ford’s motion did not meet the burden necessary for summary judgment. They pointed to expert testimony showing internal emails from Ford, warranty information and engineering reports documenting the automaker was aware of the issues surrounding the alleged power steering defect, including poor design and sensitivity to temperature changes.

The plaintiffs are represented by Roland Tellis, Mark Pifko and David Fernandes of Baron & Budd PC, Adam Levitt, John Tangren and Mary Thomas of Grant & Eisenhofer PA, and Niall Paul and Nathan Atkinson of Spilman Thomas & Battle PLLC.

The Ford Power Steering Defect Class Action Lawsuit is Philips, et al. v. Ford Motor Co., Case No. 5:14-cv-02989, in the U.S. District Court for the Northern District of California.