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Class v. Automobile Company

June 2010

Sedgwick won a class action case for an automobile company in federal court in California. In an abundance of caution, the company recalled vehicles in 19 cold weather states that could experience an increased braking distance if operated in extremely cold temperatures for an extended period of time, and issued a special service campaign notice to vehicle owners outside of those states in which the recall fix was offered free. The plaintiffs, vehicle owners who received the special service campaign notice, filed a class action suit on behalf of other similarly situated vehicle owners alleging that the special service campaign notice was misleading and inadequate, and that as a result their vehicles were potentially dangerous and devalued. The plaintiffs' lawsuit was dismissed on the basis that they did not have standing to pursue the claims because they had no injury-in-fact: they had not experienced the alleged braking issue, and did not allege that it was reasonably likely that they would drive their vehicles in conditions where the alleged braking issue could occur.