Product Liability - Written by Jere Beasley on Saturday, August 9, 2008 13:10 - 0 Comments
California Judge Approves Ford Explorer Settlement
A California judge has approved the settlement of a class-action lawsuit that will compensate about 800,000 Ford Explorer owners whose vehicles lost value because of a perceived rollover danger. The settlement brings to end lawsuits against Ford Motor Co. in California, Connecticut, Illinois and Texas. Those lawsuits claimed that Explorers lost about $1,000 in resale value because of publicity stemming from a series of rollover accidents involving the popular SUV. It should be noted that the class action over the loss in value is separate from the numerous death and personal-injury lawsuits involving earlier models of the Explorer that are pending across the country.
Under the settlement, those who bought Explorers in model years 1991 through 2001 are eligible for $500 vouchers to buy new Explorers or $300 vouchers to buy other Ford or Lincoln Mercury vehicles. Consumer groups and some plaintiffs objected to the settlement. They said few owners will be able to take advantage of the vouchers, in part because of the poor economy and high gas prices. They also were upset about the fee amounts lawyers in the case will receive.
The Washington, D.C.-based Center for Auto Safety formally objected to the settlement on behalf of about 450,000 owners of Explorers in California, 350,000 in Texas, 150,000 in Illinois and 50,000 in Connecticut. In ruling for the settlement, the trial judge said fewer than 70 plaintiffs had filed written objections to the settlement. The judge acknowledged the agreement’s shortcomings but said it was a reasonable end to seven years of litigation. Frankly, Ford came out the winner in this settlement and will sell lots of vehicles if the coupons are used by the plaintiffs.
Source: Forbes and Associated Press
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