Chrysler Class Action Says Recall ‘Fix’ Wrecked Jeeps

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A recall fix that Fiat Chrysler America (FCA) made to stop Jeeps from slipping into neutral, ended up preventing them from entering low-gear four-wheel drive, a putative class action alleges.

The proposed nationwide class action lawsuit, originally filed in California Superior Court, claims that FCA cut corners during a July 2013 recall of nearly 300,000 Jeep Grand Cherokees and Commanders that slid into neutral without consent from the driver.

Lead plaintiff Lynn Grimstad of California, purchased a 2006 Jeep Grand Cherokee with Quadra-Drive II four wheel drive system and claims she was adversely affected by the N23 recall as the transfer case neutral feature of her vehicle was intentionally, mechanically disconnected without her permission.

This was done via the N23 recall FDCM software update, which Grimstad alleges FCA was aware that reprogramming the FDCM would disable the four wheel drive and neutral shift capabilities of certain Jeep vehicles.

About a year ago, Chrysler determined that some 2005-2010 Jeep Grand Cherokees and 2006-2010 Jeep Commander SUVs specially optioned and equipped with the Quadra-Drive II or Quadra-Trac II four wheel drive systems (WK Model Vehicles) had been randomly shifting into neutral when stopped, causing them to roll away and wreak havoc in parking lots.

Chrysler reported that a total of 295,246 vehicles were affected, and a recall was issued on May 7, 2013.

The recall, known as the N23 recall, involved reprogramming the FDCM in affected vehicles with Quadra-Drive II and Quadra-Trac II four-wheel drive systems. Chrysler said that they would fix the problem for no charge and that the repair was explained to consumers as being “just a few clicks with a keyboard” to ensure the transfer case would not drop out of gear on its own.

Instead of fixing the defective hardware, the class action complaint claims Fiat Chrysler installed new software which actually disabled the Final Drive Control Module (FDCM) and prevented the WK Model vehicle’s transfer case from shifting into neutral under any circumstance.

The class action asserts that some Jeep owners who had taken their dealers up on the free N23 reprogramming began experiencing a new problem with their cars: when they tried to put their Jeeps into low-range gears, nothing happened and the “SERVICE 4WD SYSTEM” indicator light came on.

The lawsuit alleges that in reprogramming the FDCM, FCA disabled the four wheel drive lock capability of the Jeep vehicles, something the lawsuit contends the plaintiffs did not consent to and that FCA concealed from them.

The four wheel drive lock capability of the WK Model vehicles provides additional torque at the axles by gear reduction, which is useful for extreme off-roading purposes, for scaling steep grades, and for any purpose where additional torque would be beneficial.

Grimstad alleges that the N23 recall was conducted under misrepresentative pretenses, calling into question whether the N23 recall was in fact a “repair” or whether it simply served to disable a “necessary mechanical and safety related functionality of the WK Model Vehicles” to limit FCA’s liability at the lowest cost.

She and other named plaintiffs seek Class certification on behalf of a nationwide Class of consumers who purchased, own, or sold at a loss, WK Model vehicles which have been reprogrammed by FCA’s N23 recall.

They are requesting actual, compensatory, statutory, and punitive damages for FCA’s alleged intentional interference with their Jeep vehicles and the subsequent damage and diminished value through the conduct of performing the N23 recall.

Additionally, the plaintiffs have requested an injunctive order enjoining FCA to desist from further deceptive distribution or recall practices with respect to WK Model Vehicles and to completely remedy the defects or refund the purchase price of the affected vehicles as well as a court supervised recall or remedial measure monitoring program.

The plaintiffs are represented by Anthony O. Egbase and Victoria T. Orafa of A.O.E. Law & Associates, Inc.

The Jeep 4WD Defect Class Action Lawsuit is Lynn Grimstad, et al. v. FCA US LLC, et al., Case No. 8:16-cv-00763 in the U.S. District Court for the Central District of California.

UPDATE: On May 27, 2016, FCA asked a judge to dismiss a class action lawsuit accusing Fiat Chrysler of botching the fix of 300,000 Jeep Grand Cherokees and Commanders that were recalled because they were allegedly prone to shifting into neutral without any action from the driver.

UPDATE 2: On July 1, 2016, plaintiffs requested class certification from a California federal judge in a lawsuit alleging that Fiat Chrysler botched repairs on its recalled vehicles.

UPDATE 3: On May 3, 2018, two plaintiffs are asking a California federal judge to reject a bid by FCA US LLC to dismiss a class action lawsuit alleging a purported “fix” for Jeeps that reportedly rolled away while parked actually created a new defect, reduced the functionality of the vehicles and reduced their value.