VW Customer Care Diesel Fraud: Hello South Dakota

Posted on | by David Sugerman | 6 Comments on VW Customer Care Diesel Fraud: Hello South Dakota

Volkswagen announced its customer care program for consumers cheated by the clean diesel fraud. The program gives consumers who register a $500 Visa gift card, a $500 dealer coupon, and three years of free roadside assistance.

The last two benefits are nothing more than slick marketing, designed to drive sales. The first–that Visa card–comes with some wicked fine print.

You have to root around in the shiny website to find the cardholder agreement, and then you have to page through that to get to this gem:

“10. WAIVER OF RIGHT TO TRIAL BY JURY
YOU AND WE ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY
JURY IS A CONSTITUTIONAL RIGHT BUT MAY BE WAIVED IN CERTAIN CIRCUMSTANCES. TO THE EXTENT PERMITTED BY LAW, YOU AND WE KNOWINGLY AND VOLUNTARILY WAIVE ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION ARISING OUT OF OR RELATED TO THIS AGREEMENT. THIS JURY TRIAL WAIVER SHALL NOT AFFECT OR BE INTERPRETED AS MODIFYING IN ANY FASHION THE DISPUTE CLAUSE SET FORTH IN THE FOLLOWING SECTION, IF APPLICABLE, WHICH CONTAINS ITS OWN SEPARATE JURY TRIAL WAIVER.

IN THE EVENT OF ANY DISPUTE OR CLAIM RELATING IN ANY WAY TO THIS AGREEMENT, CUSTOMER AGREES THAT SUCH DISPUTE SHALL BE RESOLVED BY BINDING ARBITRATION WITH THE AMERICAN ARBITRATION ASSOCIATION, UTILIZING THE RULES OF PROCEDURE OF SUCH ARBITRATION SERVICE, FURTHER, ANY SUCH ARBITRATION SHALL TAKE PLACE IN SIOUX FALLS, SOUTH DAKOTA AND THE LAWS OF THE STATE OF SOUTH DAKOTA SHALL APPLY. THE DECISION OF AN ARBITRATOR WILL BE FINAL….”

Show of hands: So who wants to go to Sioux Falls to have their case decided by a professional, corporate arbitrator?

It is unclear whether VW is trying to capture the Diesel Fraud claims in this arbitration clause, but the language is broad enough to raise serious questions.

And of course, VW is trying to buy consumers’ loyalty for $1,000. Seems kind of cheap, given the scope of this multi-billion dollar fraud.

At bottom, this is risky business.

-David

VW Diesel Fraud–New filing: Bricker v. Volkswagen Group of America, Inc.

Posted on | by David Sugerman | 38 Comments on VW Diesel Fraud–New filing: Bricker v. Volkswagen Group of America, Inc.

Catching up. Last week, we filed Bricker v. Volkswagen Group of America, Inc., U.S. District Court Case No. 3:15-cv-01785-PK (D. Or.) Along with my frequent collaborator, Oregon attorney Tim Quenelle, I joined forces with my friends at colleagues at Cohen & Malad from Indianapolis.

For those who like such things, here is a copy of the complaint: 1 – Complaint. The case is filed as a national class action. It protects the interests of anyone who purchased or leased one of the affected VW Group vehicles.

The case arises out of the well-publicized diesel engine fraud for Volkswagen “clean diesel” vehicles. In selling various VW and Audi diesel vehicles, the Volkswagen Group represented that these vehicles were high mileage and way low on emissions. As has been widely noted in the press, the high-dollar fraud rested upon sophisticated cheat code or defeat device that switched the vehicles’ operating modes when they were being operated in a parked condition for emissions testing.

The “clean” low-emissions mode did not and could not operate while actual consumers drove the vehicles. Instead of driving green, clean diesel cars, class members were driving dirty diesel vehicles that violated pollution standards.

People paid premium prices for these clean vehicles. In Oregon and Washington, especially, green consumers pay extra for earth-friendly products. VW hyped that clean, green technology in its sales and marketing efforts, and they made a mint. The clean diesel products pushed VW to the number one position in worldwide car sales.

No surprise that we’re hearing from a lot of people. We’ve developed an initial information email for those who have questions. Feel free to email me at david@davidsugerman.com if you need more information, and we’ll mail out the initial information. (I have not posted it here because doing so destroys confidentiality. And we really, really don’t want to do that.)

The case is almost certainly going to be treated as a multi-district litigation (“MDL”) case. When cases are assigned to the MDL, the rules and processes are different. Once it is assigned–probably not for a few months–I’ll update with more information.

In addition to our email packet, I would recommend connecting with us on Facebook if you are concerned about these issues. We tend to post there more frequently.  And of course, if our information and FB posts don’t answer your questions, feel free to call or email.

-David

Bixby v. KBR–Oregon Congressional Delegation members push back on KBR and Department of Defense

Posted on | by David Sugerman | 4 Comments on Bixby v. KBR–Oregon Congressional Delegation members push back on KBR and Department of Defense

The Oregon Qarmat Ali Vets’ case, Bixby v. KBR, continues. A group of 12 of these veterans won a stunning $85 million verdict against KBR for toxic harms suffered in Iraq at a KBR- contaminated site. After the verdict, and while the case was on KBR’s slow-track appeal, the U.S. Supreme Court issued, Walden v. Fiore, an opinion in an unrelated case that changed the rules of jurisdiction. When the case came before the Ninth Circuit, it remanded the case because jurisdiction was improper.

And then KBR filed a claim for costs against these veterans, seeking approximately $850,000 from 12 sick vets who provided KBR with security. KBR got paid handsomely for its war-time work on a no-bid contract. KBR is seeking to have the United States indemnify it for all costs in these lawsuits. And even so–after winning on a technicality–KBR is now seeking to bankrupt these vets.

There are countless horror stories involving our vets. And this is one more. They served. They were sent. They did their jobs. They sacrificed. And now this.

It is perhaps too much to hope that anyone will care. And that is the point of this post. Thanks are due to members of the Oregon Congressional Delegation: Senator Wyden, Senator Merkley, Rep. Blumanauer, Rep. Schrader, Rep. Bonamici, and Rep. DeFazio did Oregon proud when they wrote this  Ltr Or Cong to DOD 15 July 2015 letter to the Department of Defense, blasting KBR and calling on the Department of Defense to take over these cases and resolve them equitably.

“These veterans deserve better***.”  I couldn’t agree more.

-David

Update: Scharfstein v. BP West Coast Products (Oregon ARCO gas debit card fees)

Posted on | by David Sugerman | 55 Comments on Update: Scharfstein v. BP West Coast Products (Oregon ARCO gas debit card fees)

There have been two important developments in our win over BP. The case involves illegal debit card charges for gas purchases at Oregon ARCO stations. Details on the history are here with a few additional posts here.

A bit of a summary first. Our claim process was a smashing success. Over 1.7 million people, roughly 83 percent of the class, made claims. That’s an awesome result in any class action.

So two things happened this month. First, the Oregon Legislature passed and Gov. Kate Brown signed HB 2700, a bill that changes how unclaimed money is handled in class actions. BP opposed the bill. Here is an awesome insider’s view of some of the many gyrations and personalities that BP hired to kill the bill. (Love the comments, especially!)

Anyway, the bill appears to apply to this case. BP disputes that, of course. So what does it mean? Well, it means that Judge LaBarre must sort out whether it applies and–if it does–how to go forward to finish what needs to be done before entry of judgment. As a lawyer who practices in these areas, I am fairly certain that the bill applies to our case. So that’s the easy part. Then comes the “Now what?” portion, and my guess is that that will slow entry of judgment.

The good news is that BP must pay 100 percent of the value of the verdict. They don’t get to keep the money. Better yet, the money goes to legal aid and other worthy related purposes to benefit consumers. Best of all, we are talking about roughly $60 million dollars.

The only downside is that it slows down our case somewhat, and it gives BP a big issue to argue on appeal. We don’t really get to choose here, so we’ll take the bitter with the sweet and move on toward wrapping everything up in the trial court. Not sure when that will be by the way. But after we get it wrapped up, BP has indicated that it will appeal. As we’ve said many times over, the appeal could take years. And of course, there is always a risk that BP will overturn the verdict on appeal.

But let’s be very clear about something: They want more fight? We got more fight. David is not intimidated by Goliath.

I mentioned two things happened. The second happened earlier this week. Judge LaBarre ruled on the fee petition. As we explained in the class notice, we were going to ask the court for no more than 20 percent, or $40 per class member.  Judge LaBarre granted part but not all of our requested fees.

Each class member’s share of fees is $35.15 or 17.57 percent. (If you want a comparison to an individual case, we usually charge individual consumers 33-40 percent, depending on whether the case settles before trial.) So when and if final payday comes around, each class member should receive $164.85, plus interest, if the case goes all way to the bitter end.

So that’s the news from the trenches. Thanks for your continuing patience. Keep in mind that we do updates on our Facebook page, so if you’re a user, you can find news there about this case and other pending major cases against KBR and Career Education Corp. If you’re a Twitter user, I am @DavidSug, though that’s not really a work account. Note that I do not offer legal advice in response to comments on our blog or on Facebook or Twitter. It’s not that I’m unwilling to answer questions. It’s more that we are required ot protect your confidentiality. And we take that seriously. So feel free to call (503.228.6474) or email me davidATdavidsugerman.com if you have questions.

-David

BP class action update: Claim time!

Posted on | by David Sugerman | 2 Comments on BP class action update: Claim time!

The claim process has started in our consumer fraud class action against BP for illegal debit card fees at Oregon ARCO stations. We’re getting a lot of calls, emails, and questions on our Facebook page.

And on top of it all, ice and snow have moved into Portland. So it looks like I may not be able to get to my office to answer calls today.

A few details and updates.

1) One common question is “How do I make a claim?”

There are two ways. If we recover your name and address, you’ll get a notice that says you’re in. If you get a letter, you don’t have to do anything more to make your claim.

The notices are starting to go out this week and will continue as we get more names and addresses. We have about 500,000 letters going out this week. I’m hoping that we’ll get another million names and addresses.

To keep your data secure, I do not have direct access to it, so I can’t look up whether we’ve recovered your data.

For those people whose records we do not recover, you will need to file a claim form. Very important: We can’t file for you because you need to fill out the form.

Here is the link to the claim form

2) More information

The official court-approved website is here

FAQ’s on the official website are here.

If you want more of a flavor of the history of this fight, you can read blog posts collected here.

3) What will consumers who make claims get?

The jury verdict means a maximum of $200 for each consumer who paid the illegal debit card fee between January 1, 2011 and August 30, 2013. The court may deduct up to $40 from each claim to contribute to fees and expenses. We’re asking the court to order BP to pay all the fees–we don’t know how the court will rule. Bottom line: Depending on the court’s ruling, each person who makes a valid claim will get $160-200.

4) When do I get my money?

Great question. Don’t go spending it yet. BP tells us they will appeal. That may well take years. If BP wins on appeal, we may not collect a dime. (And by “we,” I mean you and me!) But if we keep winning, you also get interest at 9 percent on your claim.

5) What’s next?

We hope to finish the claim process by December 31. There is an attorney fee hearing in February. (Sorry, I don’t have the date at fingertips but will make sure it gets posted on the official site.)

We’re pleased with our progress, but there is far to go. My promise to you: Our legal team will keep fighting until we see this thing through.  We’ll also do our best to answer questions and get back to you, but we’re buried in this, so please be patient.

Best contact for me is david@davidsugerman.com or by phone 503.228.6474. Thanks for you patience and your support.

David Sugerman

BP ARCO class action: A straight-up win for consumers

Posted on | by David Sugerman | 24 Comments on BP ARCO class action: A straight-up win for consumers

On Friday, January 31, 2014, the jury returned its verdict in favor of BP Oregon ARCO and am-pm minimarket gas purchasers. The jury found that BP recklessly violated the Oregon Unlawful Trade Practices Act. The 2.9 million class members are each entitled to make claims for $200. Media reports are here (OregonLive), here (KOIN-6), and here (KATU-2 pretrial)

Yes, that is a $580 million result. It is fair to say we are pleased. And proud.

We’re getting a lot of questions. I’ll try to answer some here.

So what’s next?

We are due back in court on March 7 to discuss the next round of proceedings. In the near future, we’ll start a claim form process. It’s really important that you file a claim form once the claim process opens. We do not know yet when that will happen, but we’ll note a number of resources for you here.

How do I stay informed?

We’ll continue to post updates here on this blog. We also add updates on our Facebook page. If you’re a user, like us there, and you’ll get updates and links back to the longer updates here.

You should also register with the official information page to receive official update information.

Do I need to take any action to protect my rights?

If you meet the class definition, you do not. We don’t know what requirements the court will set to prove claims. If you have access to receipts or bank records showing a gas debit card purchase with a transaction fee at Oregon ARCO or am-pm stations, it would be wise to save those documents. It may help you prove your claim.

When will consumers see their money?

Good question. BP has announced its intention to appeal. While the claim process could start as early as March (or maybe later), an appeal could string this out for years. That is why registration is important.


A few parting thoughts

We are deeply appreciative of the service provided by the jurors who served for three weeks in the trial in front of Hon. Jerome LaBarre. The entire case shows that a small group of determined consumers can take on a corporate giant like BP and have a fair trial in Oregon.

Further updates?

Well sure. When we know more, we’ll post it.

David Sugerman

Robert Neuberger and the hard farewell

Posted on | by David Sugerman | 8 Comments on Robert Neuberger and the hard farewell

Yesterday, Portland started cold and rainy. The rain lifted by mid morning, and we were graced with sun breaks and a crisp December day. And on that day, we said farewell to our friend, my office mate and colleague,  Robert Neuberger.

Robert and I started sharing office space a couple of years ago. I’ve known him and looked up to him since I was a young lawyer. He cut a large swath through the Oregon legal community. We’ve handled a number of cases together over the years. We’ve laughed and fought, but always we had each other’s back. And that is a rare, precious thing.

Robert lost his fight with cancer on Saturday. We all knew it was coming–he’s been sick for four years. Even as his time drew near, Robert maintained a positive, loving attitude and enjoyed finding humor in the tough circumstances.

When Robert first received the cancer diagnosis, he shrugged his shoulders and chose to dwell on the upside. “You know,” he said, “It could have been a piano falling out of a fourth floor window. Or a TriMet bus. In a crosswalk.”

It’s been a sad time for the family and many friends Robert left behind. We smiled and laughed through the tears yesterday and resolved to keep his memory alive. But I would be lying if I did not admit to a case of the blues. It’s a big rip out of the fabric of many lives.

Robert’s family plans a public memorial service. If you knew Robert and want details on the public memorial, feel free to contact me privately.

I don’t much believe in the idea of an afterlife, but I’m always quick to hedge my bets. So, Robert, if you’re somehow seeing this, you can chide me later or bust my chops for failing to find more laughs. I know how you hate my excuses, but see, a dear friend just died, and I’m damned short on humor. I suppose I should apologize. Or not.

David

BP Class Action Update: Class Notice

Posted on | by David Sugerman | 22 Comments on BP Class Action Update: Class Notice

Finally. Class notice has started in our class action against BP. The case involves illegal debit card charges levied on Oregon gas purchasers. We’re suing under the Unlawful Trade Practices Act because BP violates the Oregon rules governing gasoline price advertising.

Here is a link to the class action notice website.

Trial is set to begin January 14, 2014. If we win, members of the class may be eligible to claim up to $200 for these illegal transactions. More detail as it becomes available. For those in the class, please visit the website. You might want to register there so that the administrator can contact you if that becomes important.

Want more information about the case? Go here and here.

Feel free to call us or email if you think you might be part of the class or if you have stories to share. I am lead counsel for the class.

 

David Sugerman

Timbers vs. Sounders; Sugerman vs. Sitcov: A win

Posted on | by David Sugerman

My dear friend and Seattle-based colleague, Steve Sitcov, is a great guy. But as with all great and heroic types, he suffers a fatal flaw. And his fatal flaw is that he is a diehard fan of the Seattle Sounders Football Club. (I am putting a link only to show that I can be fair and evenhanded. The Sounders deserve no link love.)

I, on the other hand, am a totally committed fan of the greatest soccer team in the Northwest, if not all of North America, the Portland Timbers.  As the whole world knows–and by “whole world,” I mean fan-boys and -girls who live and breathe MLS soccer–our teams meet in the playoffs in the first round.

I’m not sure who exactly started the trash talking, but bets were laid this morning. Bets for the good, I might add.

Here is the deal. If (when, really) the Timbers win, Steve must donate $100 to the charity of my choosing. I chose Street Roots here in Portland because I am a total fan of how they go about publishing news and working on the issues of homelessness and poverty. Should the Sounders somehow manage to vanquish the much-loved Timbers, Steve has designated National Multiple Sclerosis Society to take my $100.

No doubt Steve and I will razz each other mercilessly over the course of the next 10 days, as our teams square off in their home-and-home, two-game series.  Regardless of the outcome, I will always love Steve even with his whole misguided Sounders thing.

David Sugerman