United States v. American Honda Motor Co.

143 F.R.D. 1, 1992 U.S. Dist. LEXIS 9149, 1992 WL 143721
CourtDistrict Court, District of Columbia
DecidedMay 28, 1992
DocketCiv. A. No. 87-3525
StatusPublished
Cited by4 cases

This text of 143 F.R.D. 1 (United States v. American Honda Motor Co.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. American Honda Motor Co., 143 F.R.D. 1, 1992 U.S. Dist. LEXIS 9149, 1992 WL 143721 (D.D.C. 1992).

Opinion

MEMORANDUM ON MOTION TO INTERVENE

GESELL, District Judge.

The Court has before it for final resolution a Motion to Intervene for Limited Purpose Requesting Court to Enforce and Modify Consent Decree. The motion was filed on September 17, 1991, and is directed to the Consent Decree approved by the Court on April 28, 1988. Movants represent consumer, pediatric and public interest groups. They contend, in sweeping terms, that the Consent Decree is ineffective, and request that the Court add new provisions and rewrite and strengthen enforcement of existing provisions in a manner that would drastically change the structure of the judgment itself. For example, in their Motion to Enforce and Modify Consent Decree, movants seek to have the Court declare All-Terrain Vehicle (“ATV”) use, particularly by children under 16 years old, an imminent and unreasonable hazard, and to have the Court enjoin sales of certain models for use by children and force recall of ATVs sold for such purposes in prior years.

After briefs and supporting documents had been submitted and argument initially heard, the Court, by Memorandum and Order filed December 12, 1991, decided to hold the motion unresolved for three months to allow movants to attempt to perfect their claims by a factual showing. At the time, the Court was satisfied that the Decree was not as effective in all respects as contemplated, but noted its lack of authority to bar the sale of ATVs or to perform the rule-making functions of the Consumer Product Safety Commission (“CPSC”) along the lines suggested by movants. In short, the Court gave notice [2]*2that its authority was confined to a review of steps taken to implement the Consent Decree within the structure and framework originally agreed upon by the parties. The Court specifically found that movants had failed to make a sufficient showing to justify reopening the judgment in order to bar use of ATVs by children under age 16. Thus, the Court allowed movants three months to present a more complete factual basis justifying their intervention, and indicated that proposed supplementary papers should focus on compliance with and implementation of existing provisions.

During the three-month period, the Court received from the parties extensive briefs and numerous submissions, and now has heard further oral argument. Intervenors seek refinement of certain provisions of the Consent Decree to require, for example, further warnings directed at under-age use, and they continue to allege that the parties have refused to supply information movants claim they need to monitor and test the effectiveness of the Decree, which movants insist is not being implemented to the best of the parties’ abilities.

The 57-page Consent Decree sets out a detailed series of initiatives and procedures intended to improve public knowledge of operating hazards related to ATVs, to provide both warnings and training, and to prevent outright solicitation of orders for certain ATVs when under-age use is contemplated. The intended meaning, effect and limitations of the decree are further elaborated in the detailed Memorandum that the Court issued contemporaneously, approving the text.1 No party to the judgment has sought modification of the decree or alleged any violation of its provisions since the Decree was approved more than four years ago.

Having carefully reviewed the current record, the Court is satisfied that the provisions of the Decree have been implemented in a manner consistent with the judgment. Many ATVs were already in use when the Decree, which was necessarily prospective, was signed. Prior sales and transactions in the second-hand market were affected only indirectly. Because ATV dealers were not parties to the Decree, its effectiveness depended largely on the future good-faith efforts of the CPSC and the American-based distributors of imported ATVs. Any leverage over the dealers under the Decree could only be exercised circuitously, through the distributors’ contracts with them.

There is no adequate statistical measurement of the decree’s actual success in achieving its goals. Serious injuries and deaths of ATV drivers, including under-age drivers, continue to occur in large numbers, although there does appear to be a decrease in the total number of injuries and deaths suffered as the result of ATV use. See 56 Fed.Reg. 47166, 47170 (Sept. 18, 1991). These figures are problematic as gauges of the Decree’s success, however, because there is no statistic showing what has occurred solely with regard to those vehicles sold through the distributors by their franchise dealers since the Consent Decree was entered.

On March 31, 1992, the United States filed a Memorandum Re Supplementation of the Record by the United States. Exhibit A to that memorandum is highly relevant and material to the issues before the Court. The exhibit reveals that without the prior knowledge or participation of the Court, CPSC negotiated with each distributor a two-year monitoring program designed to identify, by independent undercover investigation, dealers who had recommended an improperly sized ATV for an under-age rider. Based on random sampling methodology developed by the Commission, 25% of each distributor’s dealers were to be inspected each of the two years through on-site visits and telephone inquiry. The program required follow-up of violators and called for disciplinary action by distributors whenever the follow-up produced evidence of a second violation. During the first [3]*3year of this two-year program, compliance by dealers ranged from 77% to 87% — percentages that reveal dramatic improvement over the 44% compliance figure reflected in a random sample conducted in 1989. A number of disciplinary actions against noncomplying dealers have been instituted by distributors, and franchise agreements have been strengthened to assure ongoing compliance.

When the Court approved the Consent Decree, it expressed certain reservations and therefore retained jurisdiction.2 Much of this uncertainty centered on an inability to define with precision the “best efforts” language found on page 4, ¶! B(3), of the Decree. However, the monitoring system outlined above provides the Court with ample evidence that the parties are proceeding with an earnest best-efforts plan to comply at least with the explicit requirements of the judgment concerning warnings, training, and the like. The terms of the settlement appear not to have been breached in any material respect.

In the Consent Decree and in the accompanying Memorandum, the Court left no doubt that it expected to be informed from time to time of any problems or developments relating to compliance with the Decree, because of the Court’s continuing obligation under the Retention of Jurisdiction provision to safeguard the public interest within the structure of the settlement. The recent decision of the Supreme Court in Rufo v. Inmates of Suffolk County Jail, — U.S. -, 112 S.Ct. 748, 116 L.Ed.2d 867 (1992), further demonstrates that in matters of this kind, the court, as well as the parties, has an obligation to assure the effectiveness of consent settlements. Moreover, under the Decree itself, CPSC was obligated to make public certain materials submitted to it relating to the Decree, so that persons and groups like the current movants could also monitor the effectiveness of the settlement.3

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Cite This Page — Counsel Stack

Bluebook (online)
143 F.R.D. 1, 1992 U.S. Dist. LEXIS 9149, 1992 WL 143721, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-american-honda-motor-co-dcd-1992.