[Quoted from the Toronto Star]
Honda Canada is proposing to settle three class-action lawsuits with the owners of about 900,000 vehicles over allegations of inaccurate odometers that overstate mileage.
In a recent notice to customers, Honda said it will seek court approvals soon to resolve the cases by extending mileage on leases and warranties by 5 per cent and paying for repairs that would have fallen under that extra distance.
The settlement could affect owners and leaseholders of 2000 Honda and Acura models after November 14, 2000; all vehicles in the 2001 to 2006 model years for both brands and 2007 Fit subcompacts.
The number of autos that would fall under the settlement's terms could reach 900,000, the company confirmed yesterday.
Honda said in the notice that although the odometers were within the design tolerance standard of the Society of Automotive Engineers, the company agreed to settle the class action claims in "the interest of customer satisfaction."
"It has agreed to do so without any admission of liability," the company noted.
Despite meeting the standard, Honda spokesperson Richard Jacobs said the company has also improved the accuracy of the odometers in its vehicles starting in the 2007 model year.
Michael Peerless, the lawyer for a London plaintiff in one lawsuit, said yesterday it is difficult to assess how much the settlement would cost Honda but it could involve costly repairs that would fall under warranties.
"Most people are just getting an extension on their warranties but we think there will certainly be some people with very significant, legitimate cash claims," said Peerless, a lawyer for the firm Siskinds LLP.
"They will receive compensation for those claims. I spoke to a client who indicated he had replaced his transmission in the period when his warranty had expired. It takes $3,500 to do that."
In the notice, Honda used a hypothetical example of a driver of a 2000 model who leased it for three years with permissible mileage of 60,000 kilometres a year with a 15 cent per kilometre charge for any distance exceeding it.
The driver paid $600 for 4,000 extra kilometres.
But the settlement would entitle the driver for a reimbursement of $450 because of the inaccurate odometer, according to Honda.
Pending court approval, Honda said it would automatically extend the mileage for warranty and lease purposes, but claims for reimbursement will require some proof.
Honda said the company and the plaintiffs in the three suits in Ontario, Quebec and B.C. "strongly disagree" on the liability and the amount of damages.
The company would not comment on estimates of possible damages.
Settlement hearings are set for London in March, Vancouver in April and Quebec in May.
Honda owners would be bound by the settlement terms unless they opt out and file a form by May 18.
Complaints about odometer readings started in the U.S. and triggered numerous lawsuits earlier this decade that eventually led to settlements south of the border.
Canadian plaintiffs filed three claims here in 2006 including one in London where Geoffrey Butler, the owner of a Honda Odyssey minivan, bought a six-year or 160,000 kilometre warranty in 2002 but later alleged the odometer inflated mileage by 3 per cent.
Butler said in his statement of claim that as a result he did not receive the full benefit of the warranties and possible resale value.