Victorino v. FCA US LLC

District Court, S.D. California·Decided May 5, 2023·No. 3:16-cv-01617·Unknown

Opinion

CARLOS VICTORINO and ADAM Case No.: 16cv1617-GPC(JLB) TAVITIAN, individually, and on behalf of other members of the general public ORDER GRANTING similarly situated, PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT Plaintiffs,

v. [Dkt. No. 431.] FCA US LLC, a Delaware limited liability company, Defendant.

Before the Court is Plaintiff Carlos Victorino’s (“Plaintiff”) motion for preliminary approval of class action settlement. (Dkt. No. 431.) A hearing was held on April 21, 2023. (Dkt. No. 435.) At the hearing, the Court raised some deficiencies it noted in the Long Form Notice and a discrepancy in the Settlement Agreement. On May 5, 2023, the parties filed a revised Long Form Notice. (Dkt. No. 436.) Based on the reasoning below, the Court GRANTS Plaintiff’s motion for preliminary approval of class action settlement. Background Plaintiff Carlos Victorino (“Plaintiff”) brought a class action against Defendant FCA US LLC (“Defendant” or “FCA”), the designer, manufacturer and distributor of the 2013-2015 Dodge Dart vehicles equipped with a Fiat C635 manual transmission built on or before November 12, 2014, (“Class Vehicles”), alleging they have a defective clutch system that can cause the clutch to fail and stick to the floor, preventing drivers from shifting gears and controlling the vehicle’s speed. Plaintiff filed the operative FAC on June 19, 20171 alleging five causes of action against Defendant for violating California’s Consumer Legal Remedies Act (“CLRA”), violating California’s unfair competition law (“UCL”), breaching California’s implied warranty law under the Song Beverly Consumer Warranty Act (“Song Beverly Act”), breaching federal implied warranty law under the Magnuson-Moss Warranty Act (“MMWA”), and unjust enrichment. (Dkt. No. 104, FAC; Dkt. No. 431-2, Zohdy Decl. ¶ 3.) After the Court’s ruling on Defendant’s motion for summary judgment and motion for reconsideration, the remaining causes of action are the breach of implied warranty of merchantability under the Song Beverly Act and the MMWA, and the UCL claim premised on the breach of implied warranty claims. (See Dkt. Nos. 206, 240.) On October 17, 2019, the Court certified a Song Beverly Act class consisting of “[a]ll persons who purchased or leased in California, from an authorized dealership, a new Class Vehicle primarily for personal, family, or household purposes.”2 (Dkt. No. 318 at 24.3) Plaintiff was appointed as the Class Representative and his counsel, Capstone Law APC, was appointed Class Counsel.” (Id. at 25.) Co-counsel Kiesel Law LLP was appointed co-Class counsel on April 14, 2022. (Dkt. No. 399.)

1 The original complaint was filed on June 24, 2016 by Plaintiff and Adam Tavitian. (Dkt. No. 1.) Mr. Tavitian was dismissed after the Court granted the parties’ joint motion to dismiss on June 22, 2018. (Dkt. No. 267.) 2 The Court noted that Plaintiff only moved to certify a class based on the Song-Beverly claim and not the MMWA or the UCL claims. (Dkt. No. 318 at 6.) 3 Page numbers are based on the CM/ECF pagination. The case involved hard-fought litigation with written discovery, depositions, countless numbers of contested motion practice, expert discovery, rulings on motions in limine with trial date set on October 11, 2022. After extensive settlement negotiations with the Magistrate Judge, (Dkt. Nos. 425, 426), Plaintiff and Defendant reached a proposed settlement on September 27, 2022, on the eve of trial. (Dkt. No. 427.) The Settlement Agreement will bring immediate and valuable relief for the clutch defect. Therefore, the motion seeks the entry of an order (1) granting preliminary approval of the Settlement; (2) confirming certification of the Class for settlement purposes: (3) confirming Plaintiff as Class Representative; (4) confirming Plaintiff’s counsel, Capstone Law APC and Kiesel Law LLP, as Class Counsel; (5) approving the parties’ proposed form and method of giving Class Members notice of the action and proposed Settlement; (6) directing that notice be given to Class Members in the proposed form and manner; and (7) setting a hearing on whether the Court should grant Final Approval of the Settlement, enter judgment, award attorneys’ fees and expenses to Plaintiff’s counsel, and grant an incentive award to Plaintiff. Discussion A. Settlement Terms 1. Warranty Coverage Extension FCA has agreed to a 12-month extended warranty, to begin the first day after the Effective Date, expanding coverage for the repair or replacement of the clutch slave cylinder under FCA’s Powertrain Limited Warranty. (Dkt. No. 431-3, Zohdy Decl., Ex. 1, Settlement Agreement ¶ II.B at 10.) This warranty extension shall be automatically provided to every class member without a claim submission process and without regard to the age or mileage of the class member’s vehicle. 2. Reimbursement for Prior Repairs In connection with the warranty coverage extension, FCA has also agreed to reimburse Class Members, who previously paid out-of-pocket to have a failed slave cylinder replaced and who has not otherwise already received full reimbursement. Class Members must submit Proof of Ownership to FCA and request reimbursement at www.fcarecallreimbursement.com within 180 days of the Effective Date of Settlement for repairs or replacements. (Id., Settlement Agreement ¶ II.C at 11.) B. Class Notice Procedures Before approving a class settlement, “[t]he court must direct notice in a reasonable manner to all class members who would be bound by the proposal.” Fed. R. Civ. P. 23(e)(1). Where the settlement class is certified under Rule 23(b)(3), the notice must also be the “best notice that is practicable under the circumstances, including individual notice to all members who can be identified through reasonable effort.” Fed. R. Civ. P. 23(c)(2)(B). Here, the parties agreed to provide individual notice of the Short Form Class Notice by U.S. mail. (Dkt. No. 431-3, Zohdy Decl., Ex. 1, Settlement Agreement ¶ III.C at 17; Dkt. No. 431-4, Zohdy Decl., Ex. 1, Settlement Agreement, Ex. A.) In addition, the parties have agreed to publish a settlement website, on which will be posted a Long- Form Class Notice. (Dkt. No. 431-5 Zohdy Decl., Ex. 1, Settlement Agreement, Ex. B.) The parties have agreed on Kroll Administration (“Kroll”) to be the Notice Administrator. (Dkt. No. 431-3, Zohdy Decl., Ex. 1, Settlement Agreement ¶ I.D at 5; Dkt. No. 431-2, Zohdy Decl. ¶ 38.) After soliciting bids from CPT Group and Kroll for settlement administration services, Defendant selected Kroll and its proposal of $24,476 as the lesser of the two. (Dkt. No. 431-2, Zohdy Decl. ¶ 39.) With offices around the world, Kroll has decades of experience administering class actions of all types and sizes. (Id.) Counsel for FCA has worked with Kroll on one prior occasion, at which time Kroll proved itself competent, efficient, and reliable. (Id. ¶ 40.) Class Counsel Capstone Law APC has not worked with Kroll previously and Class Counsel Kiesel Law LLP has worked with Kroll one time in the past two (2) years, as settlement administrator in Ryan- Blaufuss v. Toyota Motor Corp., Case No. 8:18-cv-00201-JLS-KES (C.D. Cal.), which was finally approved on February 3, 2023. (Id.) Defendant has agreed to pay the costs of the settlement administration. (Id. ¶ 41.) The Notice Administrator will mail by first-class the Short Form Class Notice. (Dkt. No. 431-3, Zohdy Decl., Ex. 1, Settlement Agreement ¶ III.C at 17.) As soon as is practicable after the preliminary approval of the Settlement, the Notice Administrator will obtain the name and last known address of each potential member of the Class from Defendant. (Id.) Prior to mailing the Short Form Class Notice, the last known address of potential Class Members will be checked and updated goin

Free access — add to your briefcase to read the full text and ask questions with AI

Victorino v. FCA US LLC, (S.D. Cal. 2023).

Victorino v. FCA US LLC (Victorino v. FCA US LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

In Re Bluetooth Headset Products Liability
654 F.3d 935 (Ninth Circuit, 2011)
William Weinberger v. Great Northern Nekoosa Corp.
925 F.2d 518 (First Circuit, 1991)
Ginger McCall v. Facebook, Inc.
696 F.3d 811 (Ninth Circuit, 2012)
Rodriguez v. West Publishing Corp.
563 F.3d 948 (Ninth Circuit, 2009)
Smith v. Ford Motor Co.
749 F. Supp. 2d 980 (N.D. California, 2010)
Margie Bedolla v. Labor Ready Southwest, Inc.
787 F.3d 1218 (Ninth Circuit, 2015)
Jason Hill v. Volkswagen, Ag
895 F.3d 597 (Ninth Circuit, 2018)
Kuhlke Mach. Co. v. Miller Rubber Co.
8 F.2d 614 (N.D. Ohio, 1925)
Hanlon v. Chrysler Corp.
150 F.3d 1011 (Ninth Circuit, 1998)
Farnsworth v. Louisiana Highway Commission
8 F. Supp. 11 (W.D. Louisiana, 1934)
Alberto v. GMRI, Inc.
252 F.R.D. 652 (E.D. California, 2008)
In re Toys "R" US-Delaware, Inc.
295 F.R.D. 438 (C.D. California, 2014)
Spann v. J.C. Penney Corp.
314 F.R.D. 312 (C.D. California, 2016)
Class v. City of Seattle
955 F.2d 1268 (Ninth Circuit, 1992)