Several Ford truck owners are suggesting a proposed settlement between the Ford Motor Company and members of a class action lawsuit are inadequate to cover the actual costs incurred by owners seeking repairs on engines, RV Daily Report has learned.
A lawsuit was filed in 2011 alleging that the 6.0-liter PowerStroke diesel engine used primarily in 2003 to 2007 heavy-duty Ford trucks and vans contained defects that resulted in poor engine performance, difficulty in starting the engine, and engine stalling, according to court documents.
Thirty-nine legal actions were combined under one class action litigation in which plaintiffs asserted claims against Ford for breach of express warranty and breach of implied warranty of merchantability. They also sought an order declaring the durational limits of Ford’s warranty unconscionable and hence unenforceable, and violation of the consumer fraud and/or unfair competition statutes of 11 states.
Ford denies any liability and believes it has meritorious defenses to all of the claims raised in this litigation, court documents show. However, Ford recognizes and acknowledges the expense and length of continued proceedings that would be necessary to defend the litigation through trial and appeals. As a result, the company has entered into a settlement agreement.
The settlement applies to a model year 2003 to 2007 non-ambulance Ford vehicles sold or leased in the United States and equipped with a 6.0-liter PowerStroke diesel engine that received one or more warranty repairs to a fuel injector; the exhaust gas recirculation (“EGR”) valve; the EGR cooler; the oil cooler; and/or the turbocharger.
Under terms of the proposed settlement, which must still be approved by a judge, if a vehicle received a warranty repair to the oil cooler and/or the EGR cooler, and the owner incurred out-of-pocket expenses obtaining a repair during the extended warranty period repair, then Ford will reimburse the owner for the actual out-of-pocket expenses paid up to the following limits:
- $475 for a repair to the EGR cooler
- $525 for a repair to the oil cooler
- $825 for a repair to both the EGR cooler and the oil cooler
- $200 for a repair to the EGR valve
- $750 for a repair to the turbocharger
- $375 for repair to the first fuel injector and $125 for each additional injector
Those figures are too low to cover actual costs, several owners have told RV Daily Report.
Ford owners who wish to be excluded from the settlement agreement must send a letter or postcard before April 24.
According to a settlement notice sent by Ford, the letter must include the owner’s name, address, and telephone number; the year, model, and vehicle identification number of the vehicle. It must also include a clear statement that the owner wishes to be excluded from the settlement class; and it must be personally signed by the owner or his or her lawyer. The request must be sent to the Ford Settlement Exclusion Center at PO Box 2810, Southgate, MI 48195-4809.
If the exclusion request is properly submitted and received before the deadline, the Ford owner will not be bound by the terms of the settlement. The owner can then choose to pursue his own lawsuit against Ford based on the 6.0-liter engine. But, if the owner does not submit a clear and timely request for exclusion to the Ford Settlement Exclusion Center, then he will be bound by the settlement agreement and relinquish any claims against Ford based on the 6.0-liter engine.
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