Small claims victory against Honda overturned

Judge says slogans don’t promise anything

Heather Peters deviated from the norm in January when she opted out of a class action suit against Honda over the automobile maker’s hybrid cars failing to meet consumers’ expectations on gas mileage. Peters was unhappy with the mileage, but instead, she took the auto-giant on herself—dragging it into small claims court and asking the judge to award her the maximum $10,000 against the company to compensate her for spending more on gas than she originally anticipated when she purchased the car.

In February, a small claims court in Los Angeles found in favor of Peters. Judge Douglas Carnahan ruled that Honda misled Peters by claiming her vehicle could get 50 miles per gallon when in actuality it got much less. He awarded her $9,867.

But on Tuesday, that ruling was overturned. California Superior Court Judge Dudley Gray said in his ruling the Honda hybrid owners could not sue the company over its use of advertising slogans, which claimed the cars used “amazingly little fuel” and save “plenty of money on fuel,” because they don’t promise anything.

Peters, who is a lawyer, said California law prevents her from appealing the ruling. "Obviously, I'm disappointed," she told Thomson Reuters in a phone interview. "Honda used to be a brand that would go the extra mile on customer service."

Chris Martin, a spokesman for American Honda Motor Co., said the company is pleased with the decision, "which affirms that Honda was truthful in its advertising of the fuel economy potential of the 2006 Honda Civic Hybrid."

Comments

InsideScoop Daily eNewsletter

InsideScoop delivers the latest-breaking news affecting in-house counsel. Get the latest business trends, current corporate litigation, labor developments, technology initiatives and more — FREE. Sign up now!

You have been subscribed! You will receive a confirmation email soon.

See the entire list of InsideCounsel eNewsletters.

Resource Library


Reduce eDiscovery Costs and Risks through Email Disposition

Read this white paper to learn best practices on determining email retention periods with real...

Prepare for the Eventuality of eDiscovery Now and Reap the...

This report presents an overview of eDiscovery implementation challenges organizations may face as well as...

The Fastest and Most Cost-Effective Document Review Available!

Recommind's Predictive Coding is the market's only solution that allows clients the option of reviewing...

Bring the Benefits of Decision Tree Analysis to Your Everyday...

In this on-demand webinar, learn how to counter the challenges of litigation with predictive analytics...

13 Things to do Now to Reduce Risk and Avoid...

We have developed best practices for lowering your e-Discovery costs, shortening the length of your...

7 Simple Strategies for Improving Legal Fee Budgeting Certainty

Understanding the legal fee budgeting paradigm and following seven simple strategies will help you control...

Complimentary White Paper: Best Practices for Meeting Critical eDiscovery Challenges

Packed with practical advice, this white paper discusses best practices for meeting eDiscovery challenges across...

Complimentary White Paper "Key Considerations for Collection Methodologies and Resources"

This white paper addresses the need for companies to reevaluate their current collection policies in...

Moving Matters In-House: How Technology Enables Legal In-Sourcing

Strategically shifting more matters to in-house counsel has proven to be an effective strategy to...

5 Ways to Promote Responsible Content Sharing

Find out five ways that organizations can promote responsible sharing of content among employees by...

View All »

Advertisement. Closing in 15 seconds.