States to Review Fairness of Honda Hybrid Class Action Settlement

By Sarah Mirando | February 17, 2012

Category: Legal News

By Sarah Pierce

A San Diego Superior Court judge has given California and four other states more time to evaluate the fairness of a class action lawsuit settlement between Honda and consumers who say their Civic Hybrid did not achieve the amazing fuel economy they were promised.

The additional time was granted after Honda owner Heather Peters won $9,867 in small claims court last month. The verdict caught the attention of state investigators and raised questions about the fairness of the proposed class action settlement. Attorneys general in California, Iowa, Massachusetts, Texas and Washington will now have until February 29 to investigate whether the Civic Hybrid class action settlement is fair.

Under the terms of the current class action lawsuit settlement, Civic Hybrid owners will get up to $200 each and a $1,000 coupon toward their next Honda vehicle. If the Attorney General finds this is unfair and the judge agrees, Honda and the Plaintiffs would have to go back and reach a new class action settlement.

Peters, an attorney, opted-out of the Civic Hybrid class action lawsuit because she was dissatisfied with the proposed settlement. Instead, she decided to sue Honda in small claims court, claiming that the car’s battery failed and that Honda’s remedy left her Civic Hybrid getting barely 30 miles per gallon — much less than the advertised 50 mpg. (See “Woman Sues Honda in Small Claims Court Over Hybrid MPG.”)

Peters encouraged others to do the same and opt out of the Civic Hybrid settlement and take Honda to small claims court. However, this can be an extremely time-consuming and expensive undertaking for the average consumer.

Peters won, but Honda has 30 days to appeal the small claims decision. If they appeal, the case will be heard in Superior Court with attorneys present for both sides.

The deadline to opt out of the Honda Civic Hybrid settlement has passed, so consumers are now bound by the terms of the settlement agreement.

However, if they wish to receive compensation under the proposed settlement, they must submit a valid claim form before the estimated deadline of October 15, 2012.

More information on the Honda Civic Hybrid Class Action Lawsuit Settlement, including claim forms, can be found at www.HCHSettlement.com.