Appeals Resolved in Ford Diesel Engine Class Action Settlement

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Appeals Resolved in Ford Diesel Engine Class Action Settlement

By Sarah Pierce

Good news for Class Members waiting for word on the Ford diesel engine class action settlement: All appeals have been resolved and the settlement is now final and effective. Class Members will be able to submit claims starting September 25. [UPDATE: See our detailed claim filing instructions here.]

The Ford diesel engine settlement resolves dozens of class action lawsuits, consolidated as In re: Navistar 6.0L Diesel Engine Products Liability Litigation, that claim the PowerStroke diesel engines installed primarily in heavy-duty Ford trucks and vans contain defects that result in poor performance and expensive repair bills.

Ford denies the allegations but agreed to compensate Ford owners through a class action lawsuit settlement fund that would allow them to claim between $50 and $825 for reimbursement of post-warranty repairs to certain engine components or deductibles.

U.S. District Judge Matthew F. Kennelly approved the deal on July 2, 2013, but distribution of the settlement awards was held up by two appeals filed by Class Members who opposed the deal. Only one objector, Robert Burress, complied with the Court’s requirements for making objections, according to Judge Kennelly.

Burress objected to the proposed attorney’s fee award, which he argued was “grossly inadequate to Class Members in light of the lack of a significant benefit to the class.” Plaintiffs were asking for $12.8 million in attorney’s fees and expenses in the amount of $1.2 million.

Judge Kennelly overruled Burress’s objections to the fees, saying the plaintiffs sufficiently justified the amount of hours their counsel spent on litigating the case and negotiating the settlement, which resolves the claims of over 1 million Class Members.

“The case was highly complex, particularly given the large number of claimants,” Kennelly said in his motion approving the attorney’s fees and expenses. “Counsel’s work involved reviewing millions of pages of documents, taking nearly 40 depositions, working with experts, and briefing a number of issues before the Court, including settlement approval. The mediation process was likewise quite complex.”

Judge Kennelly said the case was an expensive one for them to prosecute, and they had sufficiently laid out over $1 million in expenses and showed they spent over 20,000 hours of their time working on it.

“Given these circumstances, the result that counsel obtained was highly favorable to the class. Plaintiffs’ counsel have amply justified the proposed fee award. The Court rejects Burress’s contrary arguments,” Kennelly said.

Details on how Class Members can file a claim for the Ford Diesel Engine Class Action Settlement can be found here.

The case is In re: Navistar Diesel Engine Products Liability Litigation, Case No. 11-cv-2496, U.S. District Court, Northern District of Illinois, Eastern Division.

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