BY BRIAN LEWIS
ANCHOR CHRISTIAN BRYANT
(Image Source: http://commons.wikimedia.org/wiki/File:Honda-Civic-hybrid.jpg)
It was a big day in small claims court this week when a California Honda owner won her case against the automaker. CNN has the story.
“Heather Peters was awarded just under $10,000 yesterday. She claims she was misled by Honda’s claim that its Civic hybrid could get 50 miles per gallon.”
To go it alone in small claims court, the Honda owner, who’s a former attorney, had to opt out of a large class action suit against the automaker. Time’s Moneyland blog breaks down the settlement she rejected.
“In a proposed class-action settlement against Honda, Civic Hybrid owners would receive $100 to $200, plus a $1,000 credit toward the purchase of a new car. Trial lawyers, on the other hand, stand to pull in $8.5 million.”
Jalopnik offers one reason why this court victory is unique – no lawyers were involved.
“Unlike a class-action lawsuit, small claims court usually allows an individual to file a complaint without having to hire an attorney. In the case of L.A. County, for instance, even Honda wasn't allowed to use a lawyer in court.”
Law blog Above the Law covered the story when the suit was filed, and offered kudos to Peters for taking the fight away from the lawyers.
“Sounds like a typical class action to me. Fat stacks for counsel, peanuts for the plaintiffs. … It will be interesting to see if Peters’s case is at all effective. Will it blow the lid off a new method of suing large companies?”
If this is the start of a trend, a former prosecutor tells CBS it could become a huge bleed on the auto industry.
“It starts with this one ten thousand dollar judgment. But when others file and hundreds of thousands of people file, it could end up in the billions of dollars.”
Honda plans to appeal in a court where they are allowed to use lawyers. They argue the Environmental Protection Agency comes up with the mileage estimates, not the auto company.
