Opting out of a class-action lawsuit, Heather Peters won almost $10,000 in small claims court against Honda, citing misleading gas mileage claims made by the car maker.
In what is being hailed as a David-v.-Goliath lawsuit, Honda owner Heather Peters won her case against the automaker in a California small claims court today, collecting $9,867.19.
Peters alleged in her suit that she had been misled by Honda about the gas mileage her 2006 Honda Civic Hybrid would get, and brought the car-making giant to small claims court with a $10,000 claim, which is the maximum allowed in California small claims courts. American Honda Motor Company’s West Coast headquarters is in Torrance, CA.
In order to bring the suit, Peters first had to opt out of a class-action suit filed regarding the Civic Hybrid’s 50-mile-per-gallon advertised fuel mileage. According to Peters, her car never exceeded 42 mpg, and averaged less than 30 after a software update.
Honda was represented by Neil Schmidt. He argued that the mileage estimates given at car lots and posted on the vehicles’ windows are products of the Environmental Protection Agency, not car dealers. However, Schmidt said, car dealers are required to display the estimate labels on the windows of the vehicles by law.
The initial hearing was on Jan. 3, and was followed by a second hearing on Jan. 25. The ruling in favor of Peters was rendered by Los Angeles Superior Court Commissioner Douglas Carnahan.
"At a bare minimum Honda was aware . . . that by the time Peters bought her car there were problems with its living up to its advertised mileage," Carnahan wrote in his judgment, the AP reported. While Carnahan said the result was not “intentional fraud,” the resulting award was given for additional fuel costs, decreased vehicle value and battery cost of the hybrid vehicle.
To the L.A. Times, Peters said, “It is a victory for Civic Hybrid owners and consumers everywhere.” Indeed, the win could set a precedent for other car owners, who may not have considered small claims court as an option. And, although Peters has previously commented that the $10,000 she sued the company for fell short of her damages, a win as part of the proposed class-action lawsuit settlement would not have given her superior results. In fact, according to MSN Money, the suit would give owners of 2003-2008 Civic Hybrid owners between $100 and $200 each, plus a rebate coupon if they would like to buy another car. However, MSN Money indicated, trial lawyers would pull down $8.5 million.
This morning, Peters tweeted, "It's official -- I won $9,867.19! Big justice comes in small packages!"
Peters has both a website, DontSettleWithHonda, and a Twitter account, dontsettlewithH, set up to help in her fight against Honda. She has also indicated that she wants to reactivate her California law license, so she can help others fight the powerful car company.
Honda does intend to file an appeal.
Image: Wikimedia Commons
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#1 Why a consumer should use lemon law instead of Small Claims
As was evidenced by the recent "win" in the Peters V. American Honda Small Claims court action in Torrance court, consumers should be aware of the "downside" of taking this the Small Claims Court route. As expected, American Honda has appealed the plaintiffs verdict (win) up to Superior Court. This is where the legions of corporate attorneys fight to the end, with costs running into the thousands of dollars. Time-consuming and expensive for consumers. Make no mistake - Honda will fight. There is too much money at stake.
Randy Sottile, noted lemon law auto expert who has worked on more than 11,000 lemon law cases says "states lemon laws allow the consumer to seek full restitution (return of their monies/buyback of their car), while Small Claims Court limits the award" "Most states are not like California that has a $10,000 Small Claims limit - many states are only $2,000-$3,000 limit" . Any consumer who believes they got a 'lemon' vehicle, and it has been subject to repeated repair attempts for the same issue under warranty should first contact a lemon law attorney in their state for an evaluation. Most lemon law attorneys provide free case assessments and phone consultations. Randy Sottile is also the Technical and Research Director for the Law Offices of William R. McGee, that provides free case evaluations and assessments to California consumes on lemon law issues.