Judge Rejects Honda Fuel Economy Lawsuit Settlement as Too Stingy
By John O'Dell February 26, 2010
First, Honda is accused by Civic Hybrid owners of being too, shall we say "optimistic" in its fuel economy boasts for the gas-electric car.
Owners of 2003-2007 Honda Civic hybrids sued automaker over alleged misleading mileage claims and agreed to settle. Now a judge has rejected the settlement offer as too stingy.
----------
Honda's two-month-old attempt to settle a 2007 class-action lawsuit over what Civic Hybrid owners say were misleading and overstated gas mileage figures was rejected by a U.S. District Court Judge in California's Central District this week after she ruled that Honda's concession provided too little value for the plaintiffs, according to a report in The New York Times.
Judge Virginia Phillips said Honda's offer to give plaintiffs coupons good for $1,000 off the price of one of the company's less fuel-efficient new cars -- provided that the owners trade in their hybrids -- was insufficient.
She told the car maker, the attorneys and the attorneys general from 26 states involved in the case to go back to the drawing board, the newspaper said.
The judge also took issue with a proposed $2.95 million payout to the plaintiffs' attorneys.
Civic Hybrid owners sued the company for what they said was an overstatement of the car's gas mileage figures in its EPA ratings for the 2003-07 model years.
While the Civic Hybrid fuel economy ratings in those years were 49 miles per gallon in the city and 51 miles per gallon highway, some plaintiffs said they were getting as little as 31 miles per gallon and said the company should have made a better effort to inform owners that their mileage might be less than advertised.
Honda hasn't admitted to any wrongdoing.
American Honda Motor Co. spokesman Chris Naughton declined comment to Green Car Advisor, saying the company doesn't comment on pending litigation.
Honda's Civic Hybrids after the 2007 model year weren't included in the suit because the EPA changed the methodology for calculating average fuel economy for hybrids so that the ratings would be more realistic.
Civic Hybrids since the 2008 model year are rated at 40 mpg in the city and 45 mpg on the highway.
Danny King, Contributor
LEAVE A COMMENT
Click here to comment on this entry.This is the most asinine thing I have heard this month.
If that's the case what prevents numerous lawsuits against other models? Either way (US) consumer will pay for it...
"a proposed $2.95 million payout to the plaintiffs' attorneys"
This is the only reason the lawsuit exists.
People should be able to get legal council when they feel they've been wronged. The problem is that the system is set up so the only way you get affordable council is if there's a bonanza in it for the lawyers. There needs to be a better solution.
I must be mistaken in my understanding of where the EPA numbers come from. It is my understanding that the government tests the cars (not the manufactor) and the number on the window sticker is a result of that testing.
Thus the 49/51 mpg has nothing to do with Honda and they can't be held responsible. Sue the government.
thinking about it some more.....
So if all cars are tested to the same standards then anyone should be able to reproduce the numbers if they drive in a simular manner. If the driver chooses to drive differently then that it is their fault alone.
Hybrids are more sensitive to driving style then non hybrids but the owners should be able to figure that one out. They don't need Honda to clue them in that late braking reduces regenerative charging and a heavy foot will use up the charge faster and require the gas engine to work even harder to recharge the battery.
Honda just needs to demonstrate that you can get that mileage by driving in a manner that someone who would buy a hybrid would be expected to drive. (Meaning if you care enough about mileage to buy a hybrid then you would care enough to drive in a manner that you would get good mileage).
This is what we call frivolous.
1. Gas mileage is VERY dependent on driving style and conditions.
2. The EPA tests are conducted with as many variables controlled as possible, so that a consumer can draw a fair COMPARISON across all models in a given model year. That is, numbers are RELATIVE.
3. The EPA fuel economy tests are standardized and reproducible, in that they follow set speed curves. However, they still rely on a human "driver" to be present, so there is some "wiggle room" so to speak. Enough to account for 31 mpg versus 49 mpg? No.
3. Each manufacturer tests their own models, either in house or with third party labs. These numbers are submitted to the EPA, which then verifies about a tenth of them. Numbers are supposed to be representative of a typically-equipped model with a given powertrain. Is there an opportunity to overstate? Yes. Is it possible that a manufacturer will get 50% higher mpg than the EPA's recheck? No.
4. Even before 2008, EPA window stickers stated that mileage may vary and gave a range of mileage you could expect. The EPA numbers are not a guarantee.
5. For 2008+, after a multi-year study which found that EPA estimates were higher than what a majority of drivers could expect, the EPA added more tests and an additional fudge factor to lower the estimates.
6. All posted EPA estimates for pre-2008 models relied on "old" EPA test procedures. All automakers used these, not just Honda hybrids. That means all automakers were unwittingly overstating the estimated fuel economy numbers. The flaw was with the tests themselves, not with the automakers.
7. If this judge allows this lawsuit to proceed, then EVERYONE who bought a Honda (or ANY vehicle) prior to MY'07, can class-action any automaker for unintentionally "misinforming" their customers. The entire industry could then be held responsible for posting flawed numbers.
8. Honda should not offer a payout. Honda is not legally admitting culpability, however a payout demonstrates to the broader public that they are guilty, if not legally so.
9. If anything, the lawsuit should be brought against the EPA.
ADD A COMMENT