Canadian GM Canada car owner(s) launch faulty gaskets class suit

[Peter Solarik]

'Toronto Star' article in today's Business section.

GM sued in potential class action
$1.2 billion claim in gasket failure
Auto maker vows to fight in court
Apr. 26, 2006. 06:43 AM
TONY VAN ALPHEN
BUSINESS REPORTER


An Oshawa-area driver is suing General Motors for more than $1.2 billion on behalf of Canadian motorists, alleging the auto giant knew about a defective gasket and possible engine damage for years but didn't change the part until 2004.

Ken Stewart of Courtice, east of Oshawa, has filed a claim that seeks class-action status and charges GM was negligent in using defective intake-manifold gaskets on 23 models and hundreds of thousands of vehicles between 1995 and 2003.

The gaskets degraded prematurely and did not seal properly, causing coolant to leak into the engines of GM vehicles, according to the claim.

"Among other consequences, the coolant mixes with engine oil, making the oil ineffective and damaging the engine," the claim said.

"In some cases the engines overheat and seize completely, creating a danger to the operator and occupants," the claim said, adding that stricken vehicles have required "complete engine replacements."

GM spokesperson Stew Low said he was unaware that the auto maker had received a copy of the claim, but the company believes strongly in the quality of GM products.

"We will defend the court action vigorously," Low added.

"Beyond that, we believe the action is a result of a spillover of an overly litigious U.S. system, resulting in a copycat style of action in Canada."

Stewart's lawyers filed the claim in the Ontario Superior Court of Justice earlier this week.

The claim names General Motors of Canada Ltd. and its U.S.-based parent, General Motors Corp., as defendants.

The lawyers will now seek certification of the claim as a class-action lawsuit.

The allegations have not been proved in court.

In the United States, a claim was made in 2004 by a driver on behalf of GM customers over alleged "incompatible" coolant and "failing" gaskets. The action gained certification as a class-action lawsuit in Jackson County, Mo., earlier this year.

Toronto lawyer Colin Stevenson, who is representing Stewart, said it's too early to quantify the size of the claim and damages.

He estimated the problem could have affected about 400,000 vehicles.

He added that an average claim of $3,000 would make the total amount $1.2 billion. The lawsuit specifies the same figure.

As an alternative, the claim seeks damages equivalent to what motorists paid out of their pockets to fix the defects and related problems.


Low, who is GM Canada's director of communications, said recently that engine failures because of the coolant leaks have been rare. He would not disclose numbers.

Low added repair costs have ranged between $750 and $1,100, and not up to $3,000.

Furthermore, Low said, GM would continue to consider requests for repairs on a "case by case" basis.

His comments came after auto-consumer advocate Phil Edmonston, author of the annual Lemon-Aid car guide, publicly criticized GM, saying the company made it difficult for customers to get refunds on gasket repairs.

Stewart said in his claim he suffered damages as a result of the defect in his 1997 Pontiac Trans Sport and 2002 Montana minivans.

"The damages include out-of-pocket expenses, repair and replacement costs and diminution of vehicle value," said the claim, without providing dollar amounts.

The claim alleged the company was negligent in designing, testing and manufacturing the gasket and did not change it promptly after discovering a problem.

The claim also alleges GM "concealed the nature and scope" of the defect since 1995 from customers and regulators and did not take remedial steps until 2004.

[BNaylor]

Originally Posted by Peter Solarik

'Toronto Star' article in today's Business section.

GM sued in potential class action
$1.2 billion claim in gasket failure
Auto maker vows to fight in court
Apr. 26, 2006. 06:43 AM
TONY VAN ALPHEN
BUSINESS REPORTER

Good read Peter. Typical GM arrogance. Hopefully the Plaintiffs prevail and the damages award is enough to put GM out of its misery.

[Peter Solarik]

Originally Posted by bnaylor3400

Good read Peter. Typical GM arrogance. Hopefully the Plaintiffs prevail and the damages award is enough to put GM out of its misery.

Hi Bnaylor:
You know, what gets me in this case is the fact that the Canadian GM Representative Low states that the company will deal with this on 'case to case' basis. Who will qualify for the 'case to case' consideration ?!
That perhaps indicates that those GM car owners that own the cars which are listed as affected, only those brave who will raise a publicity hell may be maybe considered for compensation or gaskets replacement?
He also indirectly admits by questioning the amount which it costs to get the gaskets fixed/changed that the complain is is a legitimate claim.
Think about it.

[maxwedge]

Gaskets? what about the plastic upper intake? Is this the 3800 or the 3100/3400?

[Peter Solarik]

Originally Posted by maxwedge

Gaskets? what about the plastic upper intake? Is this the 3800 or the 3100/3400?

Hi Maxwedge:
Go back to main page, scroll down on other refferals to this problem and you will find a comp-lete list of cars, trucks, minivans affected.

[BNaylor]

Originally Posted by Peter Solarik

Hi Bnaylor:
You know, what gets me in this case is the fact that the Canadian GM Representative Low states that the company will deal with this on 'case to case' basis. Who will qualify for the 'case to case' consideration ?!
That perhaps indicates that those GM car owners that own the cars which are listed as affected, only those brave who will raise a publicity hell may be maybe considered for compensation or gaskets replacement?
He also indirectly admits by questioning the amount which it costs to get the gaskets fixed/changed that the complain is is a legitimate claim.
Think about it.

Hi Peter,

GM is trying to get out cheap as usual. I recently received a notice that I was a Plaintiff in a class action lawsuit against Epson Printers. I had purchased an inkjet printer and registered it with them. The settlement was to accept $45. $25 cash and $20 on-line store credit. Epson had problems and/or may have misrepresented the way certain inkjet printers handle ink cartridges. The class action lawsuit involved any and all persons who bought these printers in the US even though the suit was filed in California and did not differentiate who would qualify. It did not make any difference whether you had the problem or not. The point is Epson acted in good faith. GM is going to run up legal fees and create all of this problem vigorously defending. I don't believe GM will be able to empanel a jury that will rule in their favor.

I guess settling the suit(s) is not in their best interests. No wonder they are in such deep financial problems. Makes you wonder.