RV Refrigerator Defect Class Action Settlement Needs Work, Judge Says

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On Tuesday, a California federal judge rejected a proposed settlement of two class action lawsuits alleging Norcold Inc., Thetford Corp. and Dyson-Kissner-Moran Corp. concealed that their refrigerators made for recreational vehicles were prone to overheating and posed a fire risk. The plaintiffs filed a motion seeking preliminary approval of the RV refrigerator defect lawsuit last month.

U.S. District Judge Josephine L. Stanton denied the plaintiffs’ request to approve the refrigerator defect class action settlement, stating she needed more information about the incentive awards that would be provided to the named plaintiffs.

Judge Stanton raised concern about the class action settlement terms that allow for Class representatives to receive incentive awards of up to $100 per hour for their time spent on the litigation, up to a maximum of $5,000. “Because Settling Plaintiffs have not provided the Court with any estimates of the number of hours the proposed class representatives have expended, the Court cannot determine whether or not the incentive awards corrupt the proposed class representatives’ adequacy,” she said. “Consequently, the Court cannot conditionally certify the class.”

The proposed refrigerator defect class action settlement defines Class Members as anyone in the United States who currently own or formerly owned a Norcold 1200 Series gas absorption refrigerator or cooling unit from Jan. 1, 2002 through Oct. 1, 2012, and/or currently own a Norcold N6 or N8 Series gas absorption refrigerator or cooling unit manufactured between Jan. 1, 2009 and Dec. 31, 2013. An estimated 575,432 Class Members are eligible for benefits from the proposed class action settlement.

If the class action settlement is approved, the $33 million refrigerator defect settlement fund will be distributed in the following manner: Class Members who currently own a 1200 Series refrigerator or formerly owned a 1200 series refrigerator and incurred out-of-pocket expenses to repair or replace the refrigerator or cooling unit will receive 25 shares; former owners of the 1200 Series refrigerator who have not incurred out-of-pocket expenses to repair or replace the refrigerator or cooling unit will receive one share; and current owners of a N6 or N8 Series refrigerator will receive three shares of the total class action settlement fund.

In addition, current owners of an N6 or N8 Series refrigerator will receive a three-year extended warranty covering replacement of any cooling unit that fails due to a leak.

Judge Stanton took issue with this plan of allocation, finding that the class action settlement agreement “does not treat 1200 Series owners and N6 and N8 Series owners alike.” The monetary relief offered to 1200 Series owners is eight times greater than the benefits offered to N6 and N8 Series owners, and the judge found that the extended warranty offer does not make the benefits equivalent.

“Because the settlement treats N6 and N8 Series owners less favorably than 1200 Series owners, a group of proposed class representatives that only includes 1200 Series owners is inadequate to represent the Settlement Class,” Judge Stanton says.

The plaintiffs will have 60 days to file an amended motion that addresses Judge Stanton’s concerns.

The plaintiffs are represented by Hart L. Rabinovich and Bradley C. Buhrow of Zimmerman Reed PLLP and Christopher P. Ridout of Ridout Lyon & Ottoson LLP.

The RV Refrigerator Defect Class Action Lawsuit is Jeffrey Etter, et al. v. Thetford Corp., et al., Case No. 8:13-cv-00081, in the U.S. District Court for the Central District of California.

UPDATE: On July 21, 2017, Top Class Actions viewers started receiving the first of four checks in the mail from the Norcold RV refrigerator defect class action settlement. 

UPDATE 2: On July 5, 2018, Top Class Actions viewers started receiving the second of four checks in the mail from the Norcold class action settlement worth as much as $307.52! 

UPDATE 3: On July 5, 2019, Top Class Actions viewers started receiving the third of four checks in the mail from the Norcold class action settlement worth as much as $307.52!