Honda Civic Hybrid Settlement

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The Notice informs members of the Settlement Class and Subclass of the Lawsuits and the proposed settlement and describes their rights, options and choices.

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On March 9, 2007, John True filed a lawsuit against American Honda Motor Co., Inc. (“AHM”), alleging generally that the fuel economy estimates AHM advertised for the Honda Civic Hybrid (“HCH”) could not be achieved under normal driving conditions. The court in the True Lawsuit preliminarily approved a settlement and authorized notice of that settlement to be sent to the proposed settlement class. On February 26, 2010, however, the court in True declined to grant final approval of the True settlement.

On March 15, 2010, Named Plaintiffs Logan and Anita Lockabey filed a lawsuit against AHM alleging similar claims to those asserted in the True Lawsuit. On July 13, 2010, Plaintiff Kevin Thieben filed a lawsuit in Los Angeles County Superior Court against AHM also alleging similar claims to those alleged in the True and Lockabey Lawsuits.

In or around July 2010, AHM notified owners of model year 2006-2008 HCHs of a software update to the Integrated Motor Assist (“IMA”) battery system (the “Software Update”). On August 18, 2010 and August 20, 2010, Plaintiffs Gary Stouch, Branka Krsul, Roy Sherrid, and Ronda Gibble filed lawsuits against AHM alleging claims similar to those asserted in the True and Lockabey Lawsuits, and further alleging that the Software Update negatively impacted the fuel economy and performance of their HCHs. In the Lockabey Lawsuit, an Amended Complaint was later filed adding Named Plaintiff Tomas Castrejon and claims on behalf of a subclass of model year 2006-2008 HCH owners and lessees pertaining to the Software Update. The Thieben Lawsuit was also later amended to add claims pertaining to the Software Update.

AHM expressly denies the allegations in the Lawsuits, denies that it has engaged in any wrongdoing, and specifically denies the claims asserted in the Lawsuits.

On September 30, 2011, San Diego County Superior Court Judge Timothy B. Taylor preliminarily approved a proposed settlement of all of the claims in all of the Lawsuits, preliminarily certified a Settlement Class and Subclass and directed the Notice to be sent to all Settlement Class and Subclass members.
 

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A class action is a type of lawsuit in which one or a few named plaintiffs bring suit on behalf of all of the members of a similarly situated group to recover damages for all members of the group, without the necessity of each member filing an individual lawsuit or appearing as an individual plaintiff. Use of the class action eliminates the necessity of filing multiple lawsuits. When a class action is resolved through a settlement that is approved by a court, all class members are bound by the result.

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The Settlement Class and Subclass are defined as:

• Settlement Class: All persons in the United States and/or the District of Columbia who purchased or leased other than for purposes of resale or distribution a Honda Civic Hybrid model years 2003 through 2009.

• Settlement Subclass: All persons in the United States and/or the District of Columbia who purchased or leased other than for purposes of resale or distribution a Honda Civic Hybrid model year 2006, 2007 or 2008.

The Settlement Class and Subclass shall include all original purchasers and lessees as well as any subsequent purchasers or lessees who purchased or leased a Class Vehicle on or before the Preliminary Approval Date.

Specifically excluded from the Settlement Class are the following persons:

• AHM and its subsidiaries and affiliates, employees, officers, directors, agents, and representatives and their family members;
• Class Counsel;
• The judges who have presided over the Lawsuits; and
• All persons who have timely elected to become Opt-Outs from the Settlement Class in accordance with the Court’s Orders.
 

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• You may remain in the Settlement Class and claim benefits: Settlement Class Members must complete and submit a Claim Form to receive the monetary benefits under the settlement. Other settlement benefits, such as warranty extensions for those who are eligible, do not require you to do anything.
• You may Opt-Out of the Settlement Class: If you validly and timely request exclusion from the Settlement Class, you will not be bound by the Final Order and Judgment entered in this Lawsuit. Excluding yourself means you cannot receive any of the settlement benefits or comment upon the settlement, but you will be able to file a lawsuit on your own behalf. To Opt-Out of the Settlement Class, you must follow the procedures outlined in the Notice.
• You may object to or comment upon the settlement: If you wish to object to or comment on any part of this settlement, you must file your objection with the Court and serve it on counsel by February 11, 2012. To object to the settlement, you must follow the procedures outlined in the Notice.
• You may attend the Final Approval Hearing: At the Final Approval Hearing, the Court will consider whether to grant final approval to the settlement, and will consider Class Counsel’s motion for attorneys’ fees. Attendance at the Final Approval Hearing is not mandatory or necessary. Any member of the Settlement Class, however, may attend the hearing. Settlement Class Members who wish to be heard at the Final Approval Hearing must follow the procedures outlined in the Notice.
 

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If the Court approves the proposed settlement at the Final Approval Hearing and the settlement becomes Final, AHM will provide cash payments and other benefits to the Settlement Class. Depending on your eligibility, benefits may include, vehicle purchase rebates, IMA battery reimbursements, Warranty Extensions, Fuel Economy DVDs, and/or Alternative Dispute Resolution services. Settlement Class Members must timely complete and submit Claim Forms to receive certain of these benefits (including cash payments). Please see the Notice for additional details.

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All members of the Settlement Class who are dissatisfied with the fuel economy they have achieved in their HCHs will be entitled to receive a cash payment of $100. Settlement Class Members who are satisfied with the fuel economy they have achieved in their vehicles are not entitled to the $100 cash payment. Subclass members who are dissatisfied with the performance of the IMA battery in their HCH or the July, 2010 Software Update will be eligible to receive an additional $100. Subclass members who are satisfied with the IMA battery performance and the Software Update are not eligible to receive the additional $100.

To obtain one or both of the cash payments, eligible Settlement Class Members must timely submit a completed Claim Form to the Settlement Administrator on or before the Claim Form deadline which will be six months from the Effective Date. The Effective Date is the date when the settlement has received final approval AND all appeals (if any) are resolved or the time to file an appeal has expired. April 16, 2012 is the earliest date that the above condition could be met. The Claim Form deadline will be no sooner than October 15, 2012, but may be later. The Effective Date, once known, will be posted on this website. Please note that Claim Forms will not be processed until after the Effective Date, and monetary compensation and rebate certificates will not be issued until after the Effective Date.
 

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All Settlement Class Members will be entitled to request a rebate certificate entitling them to Option A or Option B. In addition, Subclass members will be entitled to request an additional rebate certificate under Option B, for a total of two (2) rebate certificates.

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Eligible Settlement Class Members are entitled to a $1,000 rebate on the purchase or lease of a new Honda or Acura vehicle from an authorized Honda dealer after the Effective Date and before the date of expiration on the Option A Rebate Certificate. The Option A Rebate Certificate will be redeemable by mail through the Settlement Administrator within 12 months of the date of issuance. To be eligible for the $1,000 rebate identified in the Option A Rebate Certificate, the Settlement Class Member must sell or trade his or her HCH in a bona fide arm’s length transaction and purchase or lease a new Honda or Acura vehicle from an authorized Honda dealer during the Redemption Period. The Option A Rebate Certificate is nontransferable and may only be redeemed by the Settlement Class Member on or before the expiration date on the face of the certificate.

To obtain an Option A Rebate Certificate, the Settlement Class Member must submit a completed Claim Form to the Settlement Administrator within six months following the Effective Date. The Settlement Administrator will retain prematurely-filed claims for Option A Rebate Certificates, but Claim Forms will not be processed until after the Effective Date. To redeem an Option A Rebate Certificate, the Settlement Class Member must submit to the Settlement Administrator on or before the certificate’s expiration date the Option A Rebate Certificate and proof of sale or trade of the Settlement Class Member’s HCH as well as proof of purchase or lease of a new Honda or Acura Vehicle from an authorized Honda dealer during the Redemption Period.

Only one Option A Rebate Certificate may be redeemed by a Settlement Class Member.
 

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In the alternative to the Option A Rebate Certificate, Settlement Class Members are entitled to claim a $500 rebate on the purchase or lease of a new Honda or Acura vehicle from an authorized Honda dealership after the Effective Date and before the date of expiration on the Option B Rebate Certificate. The Option B Rebate Certificate will be redeemable by mail through the Settlement Administrator within 12 months of the date of issuance. Option B Rebate Certificates are fully transferable and saleable by Settlement Class Members only and can be redeemed by any transferee subject to the same terms as the Settlement Class Member, provided that transferees may redeem only one certificate. An Option B Rebate Certificate can only be transferred once. The Settlement Class Member need not sell or trade his or her HCH to claim or redeem his or her $500 Option B Rebate Certificate. Option B Rebate Certificates must be redeemed on or before the expiration date on the face of the Option B Rebate Certificate.

To obtain an Option B Rebate Certificate, the Settlement Class Member must submit a completed Claim Form to the Settlement Administrator on or before the Claim Form deadline which will be six months from the Effective Date. The Claim Form deadline will be no sooner than October 15, 2012, but may be later. The Effective Date, once known, will be posted on this website. To redeem the Option B Rebate Certificate, the Settlement Class Member (or his or her transferee) must submit to the Settlement Administrator the Option B Rebate Certificate and proof of purchase or lease of a new Honda or Acura Vehicle from an authorized Honda dealer during the Redemption Period on or before the expiration date on the face of the Option B Rebate Certificate.

Only one Option B Rebate Certificate may be redeemed by a Settlement Class Member or transferee unless the Settlement Class Member is also a Subclass member.
 

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Subclass members can also receive an additional fully-transferable $500 Option B Rebate Certificate pursuant to the same terms and conditions as the other Option B Rebate Certificates, which can be combined with either an Option A Rebate Certificate or one other Option B Rebate Certificate pursuant to the same terms. Subclass members claiming more than one Option B Certificate may not transfer both certificates to the same transferee.

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As of the Effective Date, Settlement Class Members with model year 2003-2008 HCHs will automatically receive an extension of the written warranty for the IMA battery system in their vehicles identical to the terms of the original written warranty that came with the vehicle. The length of the warranty extension will be for 12,000 additional miles or 12 additional months, whichever occurs first. If a Settlement Class Member’s IMA battery was replaced at the Settlement Class Member’s expense within the first of 12 months or 12,000 miles after the expiration of the original written warranty that would otherwise have covered the replacement but for the warranty’s expiration, the Settlement Class Member will be entitled to reimbursement for the full cost of parts and labor as if the Extended Warranty Period had been in effect when the replacement took place. To obtain reimbursement for an IMA battery replacement that would have been covered during the extended warranty period, the Settlement Class Member must submit a Claim Form along with appropriate documentation including proof of prior payment.

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AHM will produce a video on how Settlement Class Members can drive and maintain their HCHs in order to maximize and optimize their fuel economy. This video will be available online for viewing on this website at the Fuel Economy Video tab. Settlement Class Members may request a DVD copy of the Fuel Economy Video on the Claim Form.

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In lieu of obtaining the additional $100 cash payment and the additional $500 Option B Rebate Certificate, Subclass members who received the Software Update and are dissatisfied with the post-Software Update performance of their HCHs are eligible to participate in a binding dispute resolution program (“ADR”) administered by Judicial Arbitration and Mediation Services (“JAMS”). Subclass members selecting ADR may still claim one $100 cash payment and one rebate certificate (either an Option A Rebate Certificate or an Option B Rebate Certificate) if they are dissatisfied with the fuel economy they attained in their HCHs, but will not receive the additional $100 cash payment and the additional $500 Option B Rebate Certificate. Subclass members choosing this option will be required to pay $250 towards JAMS’ mediation fees, but all other fees due to JAMS will be paid by AHM.

In order to become eligible for ADR, the Subclass member shall submit a properly-completed Claim Form to the Settlement Administrator on or before the Claim Form deadline. After the Effective Date, Subclass members electing ADR will be contacted by AHM to initiate informal discussions that may lead to resolution of the Subclass member’s complaints. If the Subclass member remains dissatisfied after 75 days, he or she may contact JAMS to begin the formal ADR process. Subclass members may choose to retain counsel during the ADR process at their own expense, the fees of whom are not reimbursable through the ADR process.
 

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If the Court approves the settlement, you will automatically become eligible to receive some or all of the benefits of the settlement. If you wish to claim a cash payment, vehicle purchase rebate, IMA battery reimbursement, request a Fuel Economy DVD, or elect ADR, you must timely complete and submit a Claim Form to the Settlement Administrator. Settlement Class Members eligible for the Extended Warranty need not do anything to receive the Extended Warranty.

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If you wish to be excluded from the Settlement Class, you must mail an Opt-Out request to the Settlement Administrator, postage prepaid, postmarked no later than February 11, 2012. A request to exclude yourself from the settlement must include your name, address, and telephone number; the model year and VIN of your HCH; and a signed statement indicating your wish to be excluded from the HCH Settlement Class. If you do not timely submit an Opt-Out request including all of this information, you will be bound by the settlement and all of your claims for any of the Released Claims will be released. If you requested exclusion from the True class action settlement, please note that that request is no longer effective. If you wish to Opt-Out of this new settlement, you must opt-out again by following the procedures outlined in the Notice.

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If you are a member of the Settlement Class and you do not wish to be excluded, you may object to the terms of the settlement, the Attorneys’ Fee Award, or to Plaintiffs’ Incentive Awards. If you object and the settlement is approved, you will be barred from bringing your own lawsuit and you will be bound by the Final Order and Judgment entered in this Lawsuit.

You may, but need not, enter an appearance through counsel of your choice. If you do retain counsel, however, you will be responsible for your own counsel’s fees and costs.

If you object to the settlement you or your counsel must, on or before February 11, 2012 file with the Court and serve on Class Counsel a written objection including:

• your full name, address and telephone number;
• the model year and VIN of your HCH;
• a written statement of all grounds for the objection accompanied by any legal support for your objection;
• copies of any papers, briefs, or other documents upon which the objection is based;
• a list of any persons who will be called by either you or your counsel to testify in support of the objection;
• a statement of whether either you or your counsel intend to appear at the Final Approval Hearing; and
• your signature, even if you are also represented by counsel.

The addresses for the Court and Counsel are as follows:

Class Counsel

Nicholas E. Chimicles, Esq.
Alison G. Gushue, Esq.
CHIMICLES & TIKELLIS LLP
361 West Lancaster Avenue
Haverford, Pennsylvania 19041

Alan M. Mansfield, Esq.
CONSUMER LAW GROUP OF CALIFORNIA
10200 Willow Creek Road, Suite 160
San Diego, California 92131

Michael E. Lindsey, Esq.
LAW OFFICES OF MICHAEL E. LINDSEY
4455 Morena Boulevard, Suite 207
San Diego, California 92117

Jonathan W. Cuneo, Esq.
William H. Anderson, Esq.
CUNEO GILBERT & LaDUCA LLP
507 C Street, N.E.
Washington, D.C. 20002

James R. Hail, Esq.
DOYLE LOWTHER LLP
10200 Willow Creek Road, Suite 150
San Diego, California 92131

Clerk of Court

Hall of Justice
330 West Broadway
Department 72
San Diego, California 92101

Settlement Class Members who do not timely make their objections waive all objections and may not be heard at the Final Approval Hearing or have the right to appeal approval of the settlement.
 

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If you do not sign and return a Claim Form, you will not be able to claim a cash payment, a vehicle purchase rebate, or certain other benefits. Subclass members entitled to a warranty extension will automatically receive it once the settlement becomes Final.

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No. Retaliation against class members for exercising their rights under a class action settlement is strictly prohibited by state and federal law.

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The Court has appointed the following as counsel for the Settlement Class and Subclass: Nicholas E. Chimicles and Alison G. Gushue of Chimicles & Tikellis LLP; Jonathan W. Cuneo and William H. Anderson of CUNEO GILBERT & LaDuca LLP; Alan M. Mansfield of Consumer Law Group Of California; James R. Hail of Doyle Lowther LLP; and Michael E. Lindsey of the Law Offices Of Michael E. Lindsey.

You may hire your own attorney at your own expense if you choose to do so, but you are already represented by Class Counsel as set forth in the Notice.
 

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Class Counsel will collectively request, as part of the final approval of this settlement, Court approval of a payment of up to $8.474 million total in attorneys’ fees and reimbursement of expenses. Class Counsel will also ask the Court to approve a $12,500 incentive award to Named Plaintiff John True, a $10,000 incentive award to Named Plaintiff Gonzalo Delgado, and $5,000 incentive awards for the Named Plaintiffs in the Lockabey, Thieben, Stouch and Gibble Lawsuits. Any attorneys’ fees awarded to Class Counsel will be paid directly by AHM and will not reduce the benefits available to Settlement Class Members.

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If the Court approves the proposed settlement, the Lawsuits will be dismissed, and AHM will provide benefits to the Settlement Class Members who have not excluded themselves from the Settlement Class. After the Lawsuits are dismissed, any Settlement Class Member who did not request exclusion will not be able to file his or her own lawsuit for recovery for any of the Released Claims. If you want to bring your own lawsuit, you must exclude yourself from this settlement.

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The hearing will be held before the San Diego County Superior Court, Hall of Justice, 330 West Broadway, Department 72, San Diego, California 92101 on March 16, 2012, at 10:00 a.m., Judge Timothy B. Taylor presiding. The time, date and location of this Final Approval Hearing may be changed by the Court without further notice to you. If you plan to attend the hearing, you should confirm its time, date and location. Any updates or changes on the time, date or location of this hearing will be posted on this website.

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It is not necessary for you to appear at the hearing, but you may attend if you want to, at your own expense. Settlement Class Members who wish to be heard at the Final Approval Hearing must follow the procedures outlined in the Notice.

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For additional information, you may contact the Settlement Administrator by calling the toll-free number 1-877-465-4797. The Settlement Administrator is not an affiliate of any party to the Lawsuits. Alternatively, you can write to:

Settlement Administrator
P.O. Box 2566
Faribault, MN 55021-9566