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Honda Hybrid Lawsuit: Heather Peters Wins $9,867 From Honda In Small Claims Court (PHOTOS, VIDEO)

LINDA DEUTSCH   02/ 2/12 11:38 PM ET  AP

LOS ANGELES — Heather Peter's computer crashed under the onslaught of messages following her unique victory over Honda in small claims court – a win the California woman is hoping will lead other consumers to reject a class action settlement over defective hybrid cars.

Peters, who was at the center of a whirlwind as she welcomed camera crews to her home, said she has received more than 500 Facebook messages and had 6,000 hits on her website following a court decision awarding her $9,867 and finding Honda misled her into thinking her Hybrid could get 50 miles per gallon. She said the 2006 model, which she still owns, gets about 30 mpg.

Peters' win in small claims court was a unique end run around the class action process and set the stage for others to follow suit. She sees her victory as benefiting not just Honda owners but all consumers.

"To me this is really about the decline in customer service in America and how we have rolled over and accepted it for too long," she said. "People are mad as hell and they're not going to take it."

Class action lawsuits typically give small settlements to all members of the class. In the Honda suit, the company has offered $100 to $200 to each owner of an under -performing hybrid along with a $1,000 coupon to some toward purchase of a new car.

Peters, a former lawyer, said she is renewing her legal license after a 10-year lapse so she can consult with other Honda owners She said she is also posting all the paperwork from her small claims suit online as a guide for others contemplating such suits.

There appear to be many of them across the country, with Peters sharing dozens of e-mails sent to her by Honda owners who are opting out of the class action and filing their own suits.

But Professor Laurie Levenson of Loyola University Law School said Honda may have suffered something much worse than a possible flood of small claims actions.

"The worst part for Honda is they've been branded as committing fraud," she said. "That's not good for sales. It's a P.R. disaster and sometimes that costs more than the judgment."

One Honda owner in Texas was among those taking action.

"I have already sent in my letter opting out of the class action," said Darrell Stevens of Houston, Tex. who said in a phone interview that he has already filed his small claims action against Honda.

"The reason I'm doing this is it's just not fair what they're offering." he said. "I'm going to do what Ms. Peters did and present figures in court. I have no value left in the car. As soon as Ms. Peters won, there's no resale value for the car."

He said his hybrid gets 30 to 32 miles per gallon.

Honda said it will appeal Peters' judgment. She said she's confident she will win. She said more witnesses have been volunteering to help her, including a whistle blower from within Honda.

A legal expert sees Peters as in the vanguard of a consumer revolution on line

"What's new about this case is social networking," said Professor Howard Erickson of Fordham University Law School in New York.

"This is an example of how a revolutionary movement gets started," he said. "This is one individual fighting the powers that be and spreading the. Her website Don'tSettleWithHonda.com became a rallying point for dissatisfied Honda hybrid owners.

She has now decided to renew her legal license after a 10-year lapse in order to consult with other Honda owners on their legal actions.

Los Angeles Superior Court Commissioner Douglas Carnahan ruled Wednesday that the automaker misled Peters about the potential fuel economy of her hybrid car and awarded her $9,867, close to the maximum allowed by law.

"At a bare minimum Honda was aware that by the time Peters bought her car there were problems with its living up to its advertised mileage," Carnahan wrote in the judgment. He harshly criticized the company for making false promises it could not deliver.

Aaron Jacoby, a class action lawyer in Los Angeles, said Peters definitely put a new twist on small claims court. But he felt few people would have her dedication and the time to pursue a similar case.

"I just don't think it's going to take off," he said. "There are a lot of class action cases out there. It would be hard to make a dent."

Richard Cupp, a Pepperdine University professor who had predicted Peters' victory, said others will likely be inspired to follow her example.

"I remember her saying at the beginning that she wanted to start a small claims flash mob," he said. "And I think that's what she did."

A judge in San Diego County is due to rule in March on whether to approve Honda's class-action settlement. Members of the class have until Feb. 11 to accept or decline the deal.

Late Thursday evening, Honda issued a lengthy statement insisting that the Honda Civic Hybrid has the capability to achieve 50 miles per gallon or more "in real world driving conditions."

The statement by Honda spokesman Chris Martin also attached numerous letters of commendation from satisfied Honda customers.

"American Honda believes that the judgment in this case is a radical and unprecedented departure from California and federal law... we intend to vigorously appeal this decision."

Honda defended the claims made in their advertising, which they say was accurate when the vehicles were sold and remains accurate today.

Earlier on HuffPost:

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Heather Peters reviews documents while sitting inside the 2006 Honda Civic Hybrid she says never achieved the 50 mpg Honda claimed in its advertising, outside small claims court in Torrrance, Calif., Tuesday, Jan. 3, 2012. Peters has opted out of a class action settlement agreed to by Honda because it does not provide enough remuneration. (AP Photo/Reed Saxon)
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LOS ANGELES — Heather Peter's computer crashed under the onslaught of messages following her unique victory over Honda in small claims court – a win the California woman is hoping will lea...
LOS ANGELES — Heather Peter's computer crashed under the onslaught of messages following her unique victory over Honda in small claims court – a win the California woman is hoping will lea...
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09:59 AM on 02/22/2012
OPINION, by Randy Sottile, Lemon Law Auto Expert.
The recent media frenzy centering around an attorney who brought a Small Claims Court action over fuel economy claims on her hybrid vehicle has sparked an interest in consumers thinking that they can do the same thing for themselves – an ‘easy win’ in Small Claims Court. You think you can take a car case to Small Claims Court in California, win and collect your money? Think again. Here’s why…
Small Claim Court is no less than an incredible amount of time and work. You have to have the automobile manufacturer served in the city they do business (which may be nowhere remotely close to where you live).OK, so let’s assume a lightning bolt strikes and you ‘win’. Win WHAT? Do you really think the automobile manufacturers are going to pay out on a Small Claims Court judgement and open the possibility of a floodgate of these types of cases? - of course not. They will appeal the decision. Why wouldn’t they? Honda's planning on it. They have an army of staff attorneys that are allowed into the appeal, as appeals are done in Superior Court. They can bring in all the experts, engineers, attorneys they want! So, what happened to your ‘win’? A short lived rush of excitement, followed by reality. A consumer should always consult with an attorney prior to “opting-out” of a class action matter. www.californialemonlawattorneys.com
10:03 PM on 02/12/2012
I have a Honda Civic Si from 1994, and it's a great car. It gets at least 34 mpg. Always. 1994. Not a typo. Something is very very wrong when almost twenty years later, the mpg has not changed or has just gotten worse. I watched "Who Killed the Electric Car" and it was very compelling. It would not surprise me if it were true that even Honda, who I love, were in bed with the Oil Companies to make sure these things turn people off, setting back human progress by decades. Just sad.
09:43 AM on 02/10/2012
Perhaps a class action against the EPA would be more appropriate. They generate the numbers for all car models and makes. Honda uses a number that the EPA generates and they get sued. This is a prime example of how our government gets things screwed up. Let companies generate their own numbers and then hold them accountable. That's like criticizing an individual for paying too little tax
When they are paying to the letter of the law. These are problems created by politicians and bureaucrats. Our country will follow Greece Portugal Ireland Spain and Italy down the crapper if this crap doesn't end.
03:11 PM on 02/07/2012
shame on you, honda!
02:50 PM on 02/04/2012
Corporations can lie without being jailed. People lie and they can be jailed for fraud. If corporations are people, as Mitt Romney and the Supreme Court say, then why can't corporations (or their officers and Boards of Directors) be jailed?

Something is rotten in Denmark.
09:53 AM on 02/10/2012
It's our govt and it's bureaucracy the EPA that lied. The inadequacy of their methods led to changes that more accurately estimated MPG. I don't believe I have ever seen a print ad that didn't have a disclaimer that mpg are estimates and individuals results will vary. She is another lawyer looking to gain notoriety.
02:47 PM on 02/04/2012
It's great to see a whistle blower win. I have driven Honda Civics for many years because they performed. Not so much any more. I'm looking for a new brand. The Toyota hybrids are kind of shams also - you have to drive a very particular and somewhat dangerous way to get the advertised mileage.

I am waiting for a real breakthrough to buy a new car. I hope it can be made in America because the only way I know to get jobs back in the US is to vote whenever I make a purchase. I never shop at Walmark and am willing to pay more (maybe eat and drink less as a result) to buy food and goods make with environmentally sound practices.

What's our air, soil, water, and health worth? The answer is they are priceless. And if we have to pay a bit more to get a lot higher environmental health, we have to do it. Quit buying trash. But real stuff, real food, and put your money where your mouth (and lungs, and stomach) are.
09:47 AM on 02/10/2012
To get what you want you need a 1000 lb 30 HP car. You cannot defy the laws of physics.
To get that kind of mileage you need to reduce displacement and reduce the workload to accelerate the car. Want to save the environment ride a bike
02:45 PM on 02/04/2012
This is another frivolous lawsuit by greedy attorneys. I had two Honda Civic Hybrids. They both averaged 40mpg, just like Heather Peters claimed. I tested the mpg not by the digital readout, but by filling up the car, driving and then calculating the true mpg... Anyone getting 30mpg in the Honda Civic Hybrid must have an extremely heavy foot. Because I surely don't drive like a grandma.

But let me tell you what did make me angry with these hybrid cars... I'm a business owner in San Diego who drives to Los Angeles a lot. Not only was the gas mileage important to me, and an eco-friendly delivery vehicle for my environmentally friendly printing company, but the carpool lane that was promised was going to save me hours upon hours of being stuck in the L.A. traffic.

Six months after purchasing my first Honda Civic Hybrid, and two months of enjoying the carpool lane, that hybrid was totaled. The insurance provided enough for a brand new Honda Hybrid without any out of pocket expenses. My Honda retained great value! But guess what... California would not issue another carpool sticker and we could never drive in the carpool lane alone again. This is only 6 months after the first car was purchased, and only two months after I received the first sticker! How about the lawmakers that promised us the carpool lane, and didn't come through on their promises? I don't see anyone suing the State!
09:48 AM on 02/10/2012
+1
HUFFPOST SUPER USER
grkow
02:30 AM on 02/04/2012
Her quest is far from over. She will have to contend with (fellow) lawyers during the appeal process.

Anyone famliar with the small claims process realizes it has about as much integrity as a Magic 8 Ball, with the black robed gods frequently basing their decision on elements other than the facts. I observed one of these clowns tell my brother-in-law, "you should have known the basement windows would leak" when he sued a home seller for failing to disclose water accumlation in window wells. Huh? Failing to disclose all known home defects is blatant violation of state law, and she resided in the home for 5 years prior to putting it on the market. The windows leaked within 4 weeks of his taking possession.

As mentioned by other posters; the Honda hybrids were on the road for many years prior to her 2006 model, which appears ample time to exercise diligence by confirming mileage claims reported by previous owners before making a purchase decision.

I have never regretted a car purchase decision during the past 40 years due to the fact I knew more about the vehicle than most service managers (yes, I realize they are just salesmen) but the fact remains there can be no excuse for making a poor purchase decision. I never purchase a new car and have always found pampered vehicles with 15 to 25,000 miles, after they have taken that big/initial depreciation hit.
08:13 PM on 02/03/2012
Back in the 90's I sued ford Mo Co for a common Taurus Transmission problem during a time when I was raising a family and money was tight. Ford did everything to NOT HELP ME until I became so determined to have my day in court. Once I filed in small claims ($40 back then) and received a court date, thats when my phone started to ring. This after a year and a half trying to get them to HONOR their warrenty. They tried to buy me off with three offers $$ until they realized I wanted my story to be heard and I was not going away. That's when they paid me the maximum $2000 + $40 court cost. I made a promise to myself never to buy another ford for myself, my wife, my children, and my childrens children. I will never recomend their product and will continue to share my story even after their representitive tried to tell me I could never speak of this to anyone. ford KMA ! My parents told me that as long as you are right when someone has done you wrong, believe in yourself and never give up.
06:37 PM on 02/03/2012
We have one of the original 2003 Civic Hybrids shipped over from Japan that we bought in 2002. It's currently at 190,000 miles, and it's averaged roughly 48mpg.
03:41 PM on 02/03/2012
What exactly are "real world driving conditions"?
09:56 AM on 02/10/2012
Actually driving on the road not on a dyno in the lab where the EPA generates the numbers.
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HUFFPOST SUPER USER
Michael Steaphens
It's all about liberty.
02:25 PM on 02/03/2012
I don't get this.I've owned four Honda Civic models.My current one is a 1995 Civic Del Sol.I have constantly averaged at least 37-38 MPG with mine.My del Sol has hit 43 MPG.None of mine were hybrids.My Miata gets about 37-38.
09:58 AM on 02/10/2012
The problem is people like Ms Peters want a large car great performance and mileage. They don't understand give and take, action reaction. They ate their cake and want it back.
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HUFFPOST SUPER USER
Michael Steaphens
It's all about liberty.
01:53 PM on 02/10/2012
"They ate their cake and want it back." LOL,I love that quote!But you're right.An automobile is about conpromise.Just as I can'y haul lumber in my Miata,the SUV driver shouldn't expect to keep up with me in the curves(some have tried,almost with disastrous results for them).
10:10 AM on 02/03/2012
Can't wait till some one sues GM for the Chevy Volt and its 25 mile electric charge, before it switches to ethanol power. what a pain in the rear. Plug it up everyday and watch everbody else pass you on the Free-way !!!~~~
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earto44
Defender of planet Erf.
06:49 AM on 02/03/2012
However you slice this, it's B.S. when you go car shopping, and part of your list includes gas mileage, and you find out that the HUGE STICKER on the window that clearly points out what the estimated city/highway MPG is, wrong, or a LIE it should be corrected. The Car companies sure do benefit from the incorrect stats, and that is why they aren't fighting to have them corrected to match what the cars actually do get under normal driving conditions. This might not be a manufactures fault, due to who issues the MPG ratings, but if the manufactures were held financially accountable for the false stats, they will insist on fixing it. Until then, why should they? These false stats help sell their cars, and they get to act like it's not their fault, and there isn't anything they can do about it. So, good for her. She might have just changed how the auto industry sells cars.
outnow
Ban the bomb
11:51 AM on 02/03/2012
How about the unemployment statistics. Read John Williams "Shadow Statistics." Read Micheal Hudson.

Why does our government encourage lying? Is business itself based on lying? Very much is, unfortunately. Smoking Virgina Slims will not really liberate women, for example. Smoking Virginia Slims might give them cancer.

The free market is elevated to godlike status then filled with half-truths and outright lies to "sell" it to consumers. Then you find out that the market isn't even "free." What's up with that?
10:00 AM on 02/10/2012
At least all the lies are generated in the same way.
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earto44
Defender of planet Erf.
06:42 AM on 02/03/2012
We get close to 90 MPG in our Prius. It's amazing. Of course that is when we are going down a hill.