Over alleged bad jeep brakes, a class action lawsuit was filed on behalf of all those who bought or leased Jeep Grand Cherokees from 1999 to 2004 – a total of 1.2 million vehicles.
The case centers on defective front brake discs or rotors and defective brake housings or calipers, resulting in uneven disc thickness that caused pulsation when the brakes were applied and sometimes led to brake failure. In addition, Cherokee maker DaimlerChrysler Corp allegedly stonewalled complaints about the brakes filed during the warranty period.
On January 2, Superior Court Judge Jonathan Harris of New Jersey has approved a $14.5 million settlement in the national class action.
The first case was filed in New Jersey. Similar suits were also filed in New York, Florida, Ohio, Kansas, Missouri and California. The cases were consolidated in New Jersey, where, upon settlement, resolves all litigation elsewhere.
Counsel fees amounting to $2,126,878 (representing a $563 hourly rate), plus costs, will be taken from the payout. However, the larger chunk will cover mostly reimbursements to those who bought or leased a 1999 to 2002 vehicle, specifically for the cost of repairing or replacing the brakes within the warranty period.
Judge Harris has described the case as "a complex amalgam of products liability claims, consumer fraud and breach of warranty theories," in reference to the risk entailed in trying the case, which, even from the start, was already weighed in favor of approval.
Practitioners agree: A successful outcome on all theories, which would require establishing that DaimlerChrysler engaged in unfair business practices, was "dubious at best."
Since Chrysler is not known for settling cases, counsels for the plaintiffs call the settlement "a very good one," The carmaker could have litigated it to the end -- with the passage of time allowing fewer class members to participate in the settlement benefits.