GM Pickup Truck Settlement Terms

By Richard Alexander, Editor

BENEFITS TO SETTLEMENT CLASS MEMBERS

In consideration for dismissal of the Litigation with prejudice by the Settlement Class under the terms of this Agreement, General Motors agrees as follows:

Upon receipt of a Proof of Claim form postmarked within 15 months following the mailing of the final notice pursuant to paragraph VII.7., an entity or entities selected by CLASS COUNSEL and General Motors and paid by General Motors, subject to Court approval, shall issue to each SETTLEMENT CLASS member for each GM PICKUP TRUCK owned a Certificate toward the purchase of any NEW GM VEHICLE purchased from an authorized GM dealer of that line and make subject to the following terms and conditions:

A. For CONSUMERS, the CONSUMER Certificates shall be usable for a total of thirty-three months following the mailing of the final notice pursuant to paragraph VII.7. for the following amounts as specified below, and shall only be transferable as set forth below:

1. For the first 15 months, $1,000 toward the purchase of a NEW GM VEHICLE when used by the CONSUMER (as defined in paragraph II.(c)) named on the CONSUMER Certificate. The CONSUMER Certificate shall be freely transferable to any purchaser, except an authorized General Motors dealer or its affiliated entities, of the GM PICKUP TRUCK identified on the CONSUMER Certificate, and may be used by the transferee toward the purchase of any NEW GM VEHICLE in the same manner as it could have been used by the CONSUMER, provided the transferee is the current owner of the GM PICKUP TRUCK at the time of purchase of the NEW GM VEHICLE and provides proof of current ownership (registration or title).

2. For the final 18 months, $500 toward the purchase of a NEW GM VEHICLE when used by the CONSUMER (as defined in paragraph II.(c)) named on the CONSUMER Certificate.

3. During the final 18 month period, the Certificates shall be freely transferable following endorsement by the CONSUMER, provided that upon transfer a Certificate may only be used by a transferee for $250 toward the purchase of any NEW GM VEHICLE by the transferee.

B. For FLEETS, the FLEET Certificates shall be usable for a total of fifty months following the mailing of the final notice pursuant to paragraph VII.7. for the following amounts and shall only be transferable as set forth below:

1. For the first 15 months, $1000 toward the purchase of a NEW GM VEHICLE when used by the FLEET named on the FLEET Certificate. The FLEET Certificate shall be freely transferable to any purchaser of the GM PICKUP TRUCK identified on the FLEET Certificate, except an authorized General Motors dealer or its affiliated entities, and may be used by the transferee toward the purchase of any NEW GM VEHICLE in the same manner as it could have been used by the FLEET, provided the transferee is the current owner of the GM PICKUP TRUCK at the time of the purchase of the NEW GM VEHICLE and provides proof of current ownership (registration or title).

2. For the final 35 months, $250 toward the purchase of a NEW GM VEHICLE when used by the FLEET named on the FLEET Certificate.

C. For GOVERNMENTAL ENTITIES, the Certificates shall be usable for a total of fifty months following the mailing of the final notice pursuant to paragraph VII.7. for the following amounts and shall only be transferable to other departments or divisions of that GOVERNMENTAL ENTITY, except as provided below:

1. For the first 15 months, $1,000 toward the purchase of a NEW GM VEHICLE when used by the GOVERNMENTAL ENTITY named on the GOVERNMENTAL ENTITY Certificate or other departments or divisions of that GOVERNMENTAL ENTITY. The GOVERNMENTAL ENTITY Certificate shall be freely transferable to any purchaser of the GM PICKUP TRUCK identified on the GOVERNMENTAL ENTITY Certificate, except an authorized General Motors dealer or its affiliated entities, and may be used by the transferee toward the purchase of any NEW GM VEHICLE in the same manner as it could have been used by the GOVERNMENTAL ENTITY, provided the transferee is the current owner of the GM PICKUP TRUCK at the time of purchase of the NEW GM VEHICLE and provides proof of current ownership (registration or title).

2. For the next 35 months, $250 toward the purchase of a NEW GM VEHICLE when used by the GOVERNMENTAL ENTITY named on the GOVERNMENTAL ENTITY Certificate.

D. Alternatively, CONSUMERS, FLEETS and GOVERNMENTAL ENTITIES with CONSUMER Certificates, FLEET Certificates or GOVERNMENTAL ENTITY Certificates (collectively referred to as "Certificate" or "Certificates") may sell or transfer their entire interest in any or all of their Certificates. In the event of such a sale or transfer, each Certificate may be exchanged for a Third Party Certificate which shall be issued in the name of the person or entity designated on the written request referred to below. The Third Party Certificate may only be used for the unexpired portion of the first 15 months and is not transferable further. Any time that elapses between submission of a request for Third Party Certificate and the issuance shall be excluded from the unexpired portion of the first 15 months. To obtain a Third Party Certificate, the Certificate must be sent to an entity or entities, selected by CLASS COUNSEL and General Motors and approved by the Court, with a written request that the Third Party Certificate be issued in the name of the designated person or entity. The written request shall state the name and address of the designated person or entity. The charge for issuance of the Third Party Certificate will not exceed $5.00 and will be paid by the party seeking Third Party Certificate. The third party named on the Third Party Certificate may use it toward the purchase of a NEW GM VEHICLE without proof of ownership of a GM PICKUP TRUCK. The Third Party Certificate may be used for $500 toward the purchase of any NEW GM VEHICLE, except that when used, at the user's election, with any GM rebate and/or discount, it may be used for $250 toward the purchase of any NEW GM VEHICLE.

E. The following conditions are applicable to all Certificates:

1. No trade-in of a GM PICKUP TRUCK is required to purchase a NEW GM VEHICLE with the use a Certificate.

2. Certificates may only be used toward the purchase of a NEW GM VEHICLE from an authorized General Motors dealer of that line and make. Any Certificate may be used toward the down payment on the purchase from an authorized General Motors dealer of that line and make. Any Certificate may be used toward the down payment on the purchase from an authorized General Motors dealer of that line and make of a NEW GM VEHICLE. Certificates may not be used toward the rental or lease of NEW GM VEHICLES.

3. Holders of Certificates are not required to disclose their intention to use a Certificates toward the purchase of a NEW GM VEHICLE until they have made their best deal with the dealer.

4. If a NEW GM VEHICLE is ordered by the holder of a Certificate from an authorized GM dealer during the Redemption Period, but General Motors is unable to deliver the vehicle within that period, the Certificate will be honored when the NEW GM VEHICLE is purchased at the value of the Certificate at the time of the order.

5. One (1) Certificate will be issued for each GM PICKUP TRUCK owned by the requesting SETTLEMENT CLASS member. Only one (1) Certificate of any kind provided by this Agreement may be applied toward the purchase of each NEW GM VEHICLE.

6. No certificates of any kind provided by this Agreement may be used by any authorized General Motors dealer or its affiliated entities toward the purchase of any vehicle from General Motors.

7. Certificates may be used toward the purchase of any NEW GM VEHICLE from an authorized General Motors dealer of that line and make in addition to any rebate and/or discount otherwise available to the purchaser at the time of the purchase of a NEW GM VEHICLE, except as specifically provided in paragraph III.D. of this Agreement. General Motors and CLASS COUNSEL will use their best reasonable efforts to resolve any disputes or problems which may arise with a dealer regarding the redemption of any Certificate.

8. Certificates may not be transferred to authorized General Motors dealers or their affiliated entities during the first 15 months, except that Certificates may be redeemed at authorized General Motors dealers as provided in this Agreement.

Definition of terms:

(a) "CHEVROLET" shall mean the Chevrolet Motor Division of General Motors.

(b) "CLASS COUNSEL" shall mean counsel appointed by the Court to represent the Settlement Class.

(c) "CONSUMER" shall mean any SETTLEMENT CLASS member owning one or two GM PICKUP TRUCKS and shall include any parent, child, sibling or spouse of a CONSUMER, who is residing within the same household as the CONSUMER at the time the CERTIFICATE is used.

(d) "EFFECTIVE DATE OF SETTLEMENT" shall be the day on which the Final Order and Judgment described in Paragraph VII.4. below becomes final. For purposes of the Agreement, the Final Order and Judgment shall be deemed to become final on the later of (I) the 71st day after it is entered (the day following the date on which it is no longer subject to review by appeal or otherwise) if no motion for new trial or notice of appeal is filed or (ii) if any such documents are filed, on the day following the date on which the Final Order and Judgment is not subject to further judicial review or appeal, either by reason of affirmance by a court of last resort or by reason of lapse of time or otherwise, provided that the final Order and Judgment are not reversed or substantially modified by the Court or an appellate court.

(e) "FLEET" shall mean any SETTLEMENT CLASS member which is either a person or entity owning three or more GM PICKUP TRUCKS, except a GOVERNMENTAL ENTITY or the United States government.

(f) "FUEL SYSTEM" shall mean the design, manufacture and placement of the fuel tanks outside the frame rails and all related fuel system designs and components, including fuel lines, fuel pumps, fuel filler neck, fill cap, fuel tank shields, attachment devices, and surrounding structure and components of GM PICKUP TRUCKS.

(g) "GM PICKUP TRUCK(S)" means (i) 1973 through 1986 model year General Motors full-size pickup truck or chassis cab models of the "C" or "K" series which include the following models: Chevrolet C10, C20, C30, K10, K20, K30 and GMC Truck C1500, C2500, C3500, K1500, K2500, K3500 and (ii) 1987 through 1991 model year General Motors full-size pickup truck or chassis cab models of the "R" or "V" series, which include the following models: Chevrolet R10, R20, R30, R2500, R3500, V10, V20, V30, V2500, V3500 and GMC Truck R1500, R2500, R3500, V1500, V2500 and V3500. GM Pickup Trucks that have been scrapped are not included.

(h) "GMC TRUCK" shall mean the GMC Truck Division of General Motors, now known as the Pontiac GMC Division.

(i) "GOVERNMENTAL ENTITY" shall mean any governmental unit, including, but not limited to cities, states, counties, parishes, municipalities, townships or any subdivisions or agencies thereof, and shall also include any governmental unit known by any other name, regardless of the number of GM PICKUP TRUCKS owned, except for the United States government;

(j) "NEW GM VEHICLE" shall mean any new and unused General Motors light truck or automobile, which include Chevrolet, Geo, GMC Truck, Buick, Oldsmobile, Pontiac and Cadillac models. NEW GM VEHICLE shall not include Saturn models or electric powered vehicles.

(k) "SETTLEMENT CLASS" shall separately include a CONSUMER sub-class, a FLEET sub-class, and a GOVERNMENTAL ENTITY sub-class and shall be defined as: ALL CONSUMERS, FLEETS and GOVERNMENTAL ENTITIES who purchased in the United States and are owners of 12:01 AM, July 4, 1996 , of one or more GM PICKUP TRUCKS. "Settlement Class Members" shall mean all persons or entities within one or more of the sub-classes who do not submit a request for exclusion from the SETTLEMENT CLASS within the time and in the manner provided in this Agreement and the Court's Order and Notice.

QUESTIONS & ANSWERS

1. WHY SETTLEMENT IN LOUISIANA?

That is where our plaintiffs live and by law we are required to bring the case in Louisiana. Also, representatives of three groups of lawyers, involving more than 30 law firms, signed the agreement and are proceeding in Louisiana.

2. WHO IS ELIGIBLE FOR CERTIFICATES?

Any registered owner as of July 4, 1996 of a GM (Chevrolet or GMC) 1973-87 "C" or "K" series full-size pickup truck, including general "CONSUMERS", "FLEET" owners (three or more trucks), and 8CGOVERNMENT" entities.

3. HOW MUCH ARE THE CERTIFICATES WORTH?

Value of certificates change with time and if transferred. Certificates are worth $1,000 towards a new GM vehicle in the first 15 months for Consumer, Fleets, or Government entities. If the certificate is sold, the purchaser receives a new certificate worth $500. For consumers, there is an extended 18 month period when the certificate is worth $500. If sold during these 18 months, the purchaser's certificate is worth $250. Fleets and Government entities have an extended 35 month period during which the certificate is worth $250. Fleets and Government entities cannot transfer their certificates after the first 15 months.

4. CAN THE CERTIFICATES BE USED WITH OTHER REBATES?

Yes. In the hands of the original owners, the certificates can be stacked upon any GM rebate at full value.

5. MUST OWNERS TRADE IN THEIR OLD TRUCKS TO USE THE CERTIFICATES?

No.

6. HOW LONG ARE THE CERTIFICATES GOOD FOR?

For Consumers, the certificates must be used within 33 months of the mailing of the final notice. For Fleet owners or Governments, the certificates may be used for 50 months.

7. WHAT EFFECT DOES THIS SETTLEMENT HAVE ON EFFORTS TO RECALL THE TRUCKS?

None. In 1993, the National Highway Traffic Safety Administration (NHTSA) requested GM recall the trucks. GM refused claiming its trucks were as safe as its competitors' models.

8. WHY IS THIS SETTLEMENT BETTER THAN THE PREVIOUS ONE?

This settlement is better because everyone can now get a minimum of $100 if they decide to sell their certificate. More importantly, the $100 is more than what the class members could have gained through litigation.

This is a "truly transferable" certificate. During the first 15 months, Consumers, Fleets and Government entities just sign the certificate and give it to the purchaser who can have a new certificate for $500 issued. During the final 18 months, the Consumer simply endorses the back of the certificate and it is good for $250 without the issuance of any new certificate.

The previous certificate was good toward the purchase of any GM trucks -- this one is good toward the purchase of all GM vehicles (except Saturn).

The previous certificate was good for only 15 months -- this one is good for 33 months for Consumers and 50 months for Fleets and Governments.

COMPARISON: FORMER v. NEW SETTLEMENT

FORMER SETTLEMENT

1.Truck owners receive $1,000 certificates good towards the purchase of any GM pickup trucks.

2.No distinction between ownership entities.

3.Certificates valid for 15 months by any ownership entity.

4.Certificates had very limited, if any, transferability. Sale of certificate requires notary.

5.No requirement for GM to provide funding for safety research.

6.Because of difficulties with transferability, if truck owners, with the assistance of the $1,000 certificate, could not afford or did not choose to purchase a truck, there was no additional compensation.

NEW SETTLEMENT

1.Truck owners receive $1,000 certificates good towards the purchase of any GM vehicles (except Saturn).

2.Three distinctions among ownership entities: 1) "Consumer", 2) "Fleet" - someone owning three or more GM trucks, 3) "Government" - city, county, parish, state, etc.

3.Consumer certificates are valid for 15 months at $1,000, and an additional 18 months at $500. Fleet and Government certificates are valid for 15 months at $1,000, and an additional 35 months at $250.

4.Certificate is "Truly Transferable". No notary is required. During first 15 months, Consumers, Fleets & Governments can sign over certificate to a purchaser, who then receives a new certificate worth $500. During final 18 months, the Consumer can endorse certificate which is now worth $250 to a purchaser without issuance of a new certificate.

5.Requires GM to provide $4.1 million in funding for a research project to promote enhanced fuel system safety for motor vehicles. 6.If the truck owners, with the assistance of the $1,000 certificate, could not afford or did not choose to purchase a car or truck, they can easily sell their certificate for $100, more than what would have been won through litigation.

This settlement is the culmination of the efforts of many consumer lawyers across the United States.

Richard Alexander, The Alexander Law Firm, San Jose, serves as one of five members of the Plaintiffs' Executive Committee appointed by Judge William H.Yohn, Jr., United States District Court, to jointly prosecute federal court cases against GM which were transferred to the Eastern District of Pennsylvania under federal multi-district litigation rules. In Re: General Motors Corporation Pickup Truck Fuel Tank Products Liability Litigation, MDL Docket NO. 961.

Elizabeth Cabraser, Lieff, Cabraser, Heimann & Bernstein, San Francisco and Dianne Nast, Roda & Nast, Lancaster, PA serve as co-lead counsel for the combined federal court cases. Alan Mansfield, Milberg, Weiss, Bershad, Hybes & Lerach, San Diego, Richard Schriffrin, Schriffin & Craig, Bala Cynwyd, PA complete the membership of the Executive Committee. Clarence Ditlow and Robert Graham of the Center for Auto Safety, Washington, DC also contributed as counsel in the federal court action.

Don Barrett, Barrett Law Offices, Lexington, MS, Michael Crow, Adams & Reese, New Orleans, LA, Patrick Pendley, Plaquemine, LA, and Tim Crowley, Crowley, Marks & Douglas, Houston, TX, among others, served as counsel for plaintiffs in state court actions and were instrumental in bringing about the settlement of this case.  

[0699]

© Richard Alexander, 1999-2007.

Richard Alexander is a specialist in personal injury litigation with 30 years in-depth experience. Emphasizing working relationships with clients has led to an exceptional record of success. He has served as a member of the Board of Governors of The State Bar of California, President of the Santa Clara County Bar Association and the Board of Governors of Consumer Attorneys of California. He is a founding member of the National Association of Consumer Advocates, and heads Alexander Hawes, LLP.

Alexander Hawes, LLP is a California law firm that specializes in personal injury, wrongful death, and financial losses caused by negligence, defective products, toxic chemicals, corporate misconduct or insurance fraud on behalf of consumers, small investors, injured workers and small businesses. In addition to individual cases the firm prosecutes class actions for large groups of individuals who have suffered financial loss as a result of corporate fraud, defective consumer products, and environmental pollution. The firm holds Martindale-Hubbell's highest rating and is recognized in the List of Preeminent Law Firms in the U. S.

Press here for a free consultation.

Press here to return to The Articles Page.

Press here to return to The Consumer Law Page.

Press here to return to Alexander Hawes, LLP Homepage.