Chrysler Settles Defective Power System Class Action Lawsuit

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Last Thursday, the plaintiffs in the class action lawsuit alleging defective power systems in Jeeps, Durangos, and Dodges manufactured by Chrysler Group LLC filed a motion asking for approval of a proposed settlement that would end the litigation.

The class action lawsuit, filed in November of 2013, alleged that Chrysler duped consumers into buying vehicles with defective power steering systems, including 2011-12 model year Jeep Grand Cherokees, Dodge Durangos, and Dodge Grand Caravans. In the class action lawsuit, eight plaintiffs from six states alleged that Chrysler Group, currently operating as FCA US, had known about the defect, but continued to sell the vehicles and refused to help with repairs. The plaintiffs alleged the defect caused a number of problems, including stalling, trouble starting the vehicle, and the headlights unexpectedly turning off and windshield wipers starting on their own.

Chrysler moved to dismiss the class action lawsuit several times arguing that the allegations did not match up to the plaintiffs’ actual claims. Chrysler also filed a motion for a more definite statement of the claims against it.

U.S. District Judge Dean D. Pregerson first dismissed the class action lawsuit in April of 2014, but allowed the plaintiffs to make changes, noting that although the evidence could establish that Chrysler knew of the defect, their complaint contained a number of inconsistencies that needed to be resolved. Judge Pregerson partially dismissed the plaintiffs’ amended class action lawsuit in November of 2014, trimming warranty claims; however, the judge retained the plaintiffs’ claims under California, Maryland, Massachusetts, Florida and Missouri law.

“Last November, Plaintiffs came before the Court asking it to issue extraordinary relief to deal with a potentially serious safety issue,” the plaintiffs began in their memorandum of support. “Plaintiffs are pleased to report that they have reached a class-wide settlement with Chrysler (now known as FCA US) that will address the potential safety issue at the heart of the case.”

The plaintiffs noted that Chrysler had previously initiated a recall of the 2011 models, and that the automaker agreed to expand the recall to the 2012 and 2013 cars before the class action settlement was reached. “FCA US will reimburse vehicle owners and lessees for any related repair and rental car expenses, and will extend its standard warranty from 3 years/36,000 miles to 7 years/70,000 miles for [totally integrated power module] repairs conducted through the recall,” continued the plaintiffs.

According to documents filed by the plaintiffs last week in support of the proposed class action settlement, the deal is contingent on Chrysler’s agreement to expand its safety recall over the affected cars. Approximately 525,000 class vehicles will be affected by this class action settlement when taking the recall and repairs into account.

The lead plaintiffs are represented by Eric. H. Gibbs, David Stein and Scott M. Grzenczyk of Girard Gibbs LLP; and Todd M. Schneider and Joshua G. Konecky of Schneider Wallace Cottrell Konecky LLP.

The Chrysler Defective Power System Class Action Lawsuit is Velasco, et al. v. Chrysler Group LLC, Case No. 2:13-cv-08080, in the U.S. District Court for the Central District of California.