BMW To Settle Leaky Trunk Class Action Lawsuits

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BMW of North America LLC has reportedly agreed to settle two class action lawsuits claiming a design defect causes sunroof drains to become clogged and leak into the trunk, which can damage electrical components.

Last week, the plaintiffs filed a memorandum of law supporting their motion for preliminary approval of the BMW class action settlement.

They say that both parties were prepared to litigate their claims but that both sides “recognized the cost and risk of continuing litigation and the potential benefits of settlement.”

BMW has vigorously fought the leaky trunk class action lawsuits. In 2016, a federal judge trimmed all but one claim from plaintiff George Catalano’s BMW class action lawsuit. BMW subsequently filed a motion to dismiss the leaky trunk class action lawsuit, but the judge denied the motion and allowed Catalano’s BMW class action lawsuit to proceed.

The parties reportedly participated in settlement discussions with a mediator in November and reached an agreement that would resolve two leaky trunk class action lawsuits: Catalano v. BMW of North America LLC and Sharma v. BMW of North America LLC.

Both BMW class action lawsuits allege certain BMW vehicles contain a design defect in which sunroof drains can become clogged, causing water to enter the trunk compartment and damage sensitive electrical components that are located in the trunk.

The damaged electrical components were allegedly prone to malfunction, short and fail, posing a safety risk to consumers. The leaky trunk class action lawsuits assert BMW was aware of the design defect but failed to disclose it to consumers.

Class Members of the proposed BMW settlement include: “[A]ll persons or entities in the United States and Puerto Rico who currently own or lease, or previously owned or leased, a model year 2004 to 2010 U.S. specification BMW 5 Series (E60 and E61) vehicle.”

Under the terms of the proposed BMW class action settlement, Class Members can take their vehicles to an authorized BMW center to receive an inspection for water damage and electrical damage and, if water damage is discovered, the BMW center will repair and replace the affected modules at no cost.

The BMW class action settlement will also provide up to $1,500 to reimburse Class Members for eligible out-of-pocket expenses they incurred to repair or replace the affected modules due to water damage.

According to the BMW settlement documents, Class Members will not be required to submit a Claim Form in order to receive inspection, relocation and repair or replacement services. However, a Claim Form will be required for Class Members seeking reimbursement for their out-of-pocket expenses.

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The drivers are represented by Edward A. Wallace and Amy E. Keller of Wexler Wallace LLP; William A. Kershaw, Stuart C. Talley and Ian J. Barlow of Kershaw Cutter & Ratinoff LLP; Stephen M. Harris of The Law Offices of Stephen M. Harris PC; Robert L. Starr of The Law Offices of Robert L. Starr and Joseph R. Santoli of The Law Offices of Joseph R. Santoli.

The BMW Leaky Trunk Class Action Lawsuits are Catalano v. BMW of North America LLC, et al., Case No. 1:15-cv-04889, in the U.S. District Court for the Southern District of New York and Monita Sharma, et al. v. BMW of North America LLC, Case No. 3:13-cv-02274, in the U.S. District Court for the Northern District of California.

UPDATE: The BMW Electronic Component Water Damage Class Action Settlement is now open! Click here to file a claim.