Class Action Settlement Reached Over Honda Accord Oil Defect

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American Honda Motor Co. has agreed to a class action lawsuit settlement over claims it manufactured defective Accord vehicles that burn oil too quickly. As part of the settlement agreement, Honda has agreed to provide “valuable benefits” to Class Members to resolve the litigation.

The Honda Accord class action lawsuit was originally filed in March 2012 by plaintiffs Vince Eagen and Alex Soto. They claimed that 2008-2010 Honda Accords contained a “systematic design defect that enables oil to enter into the engine’s combustion chamber,” causing the engine to excessively consume oil. This alleged defect led to engine malfunction and premature spark plug degradation. The plaintiffs claimed that Honda refused to honor warranties covering the defective Accords.

According to the class action lawsuit, Honda had received hundreds of online complaints about the Honda Accord oil defects and issued a technical service bulletin notifying Honda technicians to check for symptoms of the defect. Despite this knowledge, Honda refused to take action to fix the problem, the plaintiffs said.

Further, the plaintiffs alleged that even though the defective engines needed to be repaired within the warranty period, Honda refused to fix the parts for free. Instead, Honda told its customers to check their vehicles’ oil levels every time they get gas. Eagen claims that he had to add a quart of oil to his Accord each month, and had to replace his prematurely corroded spark plugs twice within 55,000 miles of driving.

Under the terms of the Honda Accord class action settlement, Honda agreed to extend the Powertrain Limited Warranty of each settlement class vehicle for engine misfiring for up to eight years after the original sale or lease of the vehicle, without imposing a mileage restriction. Honda also agreed not to contest the class counsel attorneys’ fees if they do not exceed $800,000 and will allow Class Members to submit a claim for reimbursement for their out-of-pocket expenses.

The class action lawsuit was also amended to limit Class Members to include only owners and lessees whose vehicles may have experienced engine misfire, to include only allegations related to engine misfire, and to voluntarily dismiss claims related to excessive oil consumption in 4-cylinder Accord vehicles.

This class action settlement was reached after a California judge declined to force arbitration on the case in October 2012. U.S. District Judge Susan Illston found that Honda was a third-party non-signatory to a contract and therefore was not able to compel arbitration under the contract’s terms.

Details on how to file a claim for the Honda Accord Oil Defect Class Action Lawsuit were not immediately available. Keep checking Top Class Actions or sign up for our free weekly e-newsletter below to receive settlement updates.

The settlement Class Members are represented by Steven Berk and Matthew Bonness of Berk Law PLLC; Beth Terrell and Kimberlee L. Gunning of Terrell Marshall Daudt & Willie PLLC; Michael Ram and Jeffrey B. Cereghino of Ram Olson Cereghino & Kopczynski LLP; and Lawrence Deutsch, Sharon Carson and Eugene Tompkins of Berger & Montague PC.

The Honda Accord Oil Defect Class Action Lawsuit is Alex Soto et al. v. American Honda Motor Co. Inc., Case No. 3:12-cv-01377, in the U.S. District Court for the Northern District of California.

UPDATE 1: Federal judge gives preliminary approval to the Honda Accord Oil Defect Class Action Settlement on October 9, 2013.

UPDATE 2: This class action settlement now includes other Honda vehicles, including the Honda Accord, Odyssey and Crosstour. Details on how to file a claim to receive reimbursement for repair costs can be found here.

UPDATE 3: A federal judge granted final approval to the Honda engine misfire class action settlement at a March 21, 2014, Final Fairness Hearing.

UPDATE 4: Reimbursements from the Honda Engine Misfire Class Action Settlement were mailed July 14, 2014. A second wave of checks will go out this Fall, according to the Settlement Administrator. If you get a check, let us know!