White v. General Motors Corp.

775 So. 2d 492, 99 La.App. 1 Cir. 2585, 2000 La. App. LEXIS 2938
Louisiana Court of Appeal·Decided November 3, 2000·No. No. 99 CA 2585·Published·Cited by 2 cases

Opinion

LGONZALES, J.

In this appeal, General Motors Corporation (GMC) challenges a trial court order [494]*494requiring implementation of a class action settlement in a manner not set forth in the settlement agreement. GMC contends the trial court order makes impermissible substantive changes to the settlement agreement. The class action plaintiffs contend the trial court order was a proper exercise of the trial court’s power to oversee the administration and implementation of the settlement agreement.

FACTUAL AND PROCEDURAL BACKGROUND

General Background

Beginning in 1992, class action lawsuits were filed nationwide against GMC by-owners of GMC pickup trucks that had been manufactured with side-mounted fuel tanks located outside of the vehicle frame rails. Although attempts to settle the approximate 5.8 million class claims have been made, thus far, none have been successful. See e.g., In re: General Motors Corporation Pick-up Truck Fuel Tank Products Liability Litigation, 55 F.3d 768 (3rd Cir.1995), cert. denied, 516 U.S. 824, 116 S.Ct. 88, 133 L.Ed.2d 45 (1995). In 1998, this court vacated a trial court judgment from the Eighteenth Judicial District Court certifying a nationwide settlement class and approving a settlement agreement. White v. General Motors Corporation, 97-1028 (La.App. 1 Cir. 6/29/98), 718 So.2d 480, unit denied, 98-2502, 98-2511, 98-2522 (La.12/11/98), 729 So.2d 587, 590, 591.2 The matter was remanded to the trial court for further proceedings. On January 15, 1999, the trial court held a hearing, and on January 20, 1999, signed an “Order and Supplemental Findings in Support of Final Order and Judgment,” reaffirming (1) its previous certification of the settlement class, (2) its final approval of the proposed settlement, and (3) its awards for attorney fees and costs.3

1 fiTerms of the Settlement Agreement

Generally, the settlement agreement provides for members of the settlement class4 to receive a $1,000.00 certificate for each GM pickup truck5 owned toward the [495]*495purchase of any new GM vehicle6 from an authorized GM dealer. The $1,000.00 certificate is valid for 15 months following the mailing of the final notice of the settlement. If the class member has sold his GM pickup truck, he may freely transfer his $1,000.00 certifícate to the purchaser,7 who may use the certificate in the same manner as it could have been used by the settlement class member, provided the purchaser is the current owner of the truck. Following the initial 15 month period, the certificates are usable for additional periods of | fi18 and 35 months, and for lesser value, depending on whether the settlement class member is a consumer, fleet, or governmental owner.8

In lieu of a $1,000.00 certificate, a settlement class member may sell or transfer his entire interest in his certificate, by exchanging the certificate for a $500.00 “third party certificate” that is usable for the unexpired portion of the initial 15 month period by a designated third party toward the purchase of a new GM vehicle, without proof of ownership of a GM pickup truck.9 To obtain a third party certificate, the $1,000.00 certificate must be sent with a written request that the third party certificate be issued in the name of the designated party, and stating the name and address of the designated third party.

Under the settlement agreement, holders of certificates need not trade in a GM pickup truck in order to use the eertifi-cates toward the purchase of a new GM vehicle; nor is a certificate holder required to disclose his intention to use a certificate toward the purchase of a new GM vehicle until he has made his best deal with the dealer. . Only one certificate of any kind provided for in the settlement agreement may be applied toward the purchase of each new GM vehicle. Certificates may not be used by authorized GM dealers or their affiliates.

The settlement agreement also provides for the establishment of a safety research project, funded by GMC’s payment of $4.1 million, to promote independent research to enhance motor vehicle fuel system safety. Upon the effective date of the settlement, and conditioned upon its continuing performance of all terms and conditions of the settlement agreement, the settlement agreement provides that GMC10 shall be released from any and [ 7all claims brought, or which could have been brought by the settlement class members, arising out of, or in any way relating to the fuel system of the GM pickup trucks containing the side-mounted fuel tanks. The settlement does not preclude the assertion of claims for damages arising out of any vehicle fires or crashes that result in personal injury, death, or physical damage to property.

“Implementation” of the Settlement

After its January 20, 1999 order approving the settlement, the trial court sched[496]*496uled a hearing to be held on March 22, 1999, “to facilitate implementation of the settlement” and “for the purpose of considering and approving the form of the notice to be disseminated to the class members and such other matters as may be pertinent to implementation of the settlement.” At the hearing, the parties entered the following pertinent stipulations: (1) subject to its meeting the lowest bid, Moore Corporation Limited (Moore) would process proofs of claims, issue original certificates, and process requests for and issue third party certificates; and (2) the notice to the settlement class members would include language informing them of their right to sell them certificates to persons of their choice at the best price they could negotiate, would advise the settlement class members that counsel for the plaintiffs (Class counsel) could provide further information and assistance in transferring or selling the certificates, and would provide a toll free number where Class counsel could be reached. The trial court approved the stipulations and adopted them as the order of the court.

On April 1, 1999, the trial court issued an order, amending the stipulation of counsel and its March 22, 1999 oral order. In the April 1, 1999 order, Moore’s responsibility was changed to handling the final notice and claim form functions, and the third party certificate functions, but GMC was ordered to select the entity to process requests for, print, and mail the original certificates to settlement class members. In the event Moore did not agree to meet the lowest bid, the order provided the lowest responsible bidder was selected to perform the final notice and claim form functions. Further, the April 1, 1999 order approved the form of the final notice and claim form (aj^copy of which was attached to the order) for mailing to the settlement class. The approved notice contained the stipulated reference to a toll free number where Class counsel could be reached for assistance in transferring or selling certificates.

On May 14, 1999, Class counsel filed a “Motion for Order Relating to Administration and/or Implementation of Settlement” requesting that the trial court set a hearing to address several issues.

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

White v. General Motors Corp., 775 So. 2d 492, 99 La.App. 1 Cir. 2585, 2000 La. App. LEXIS 2938 (La. Ct. App. 2000).

775 So. 2d 492 (White v. General Motors Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

White v. General Motors Corp.
775 So. 2d 492 (Louisiana Court of Appeal, 2000)
Hunter v. Tax Assessor
27 Fla. Supp. 148 (Duval County Circuit Court, 1966)