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White v. General Motors Corporation

11/3/2000

In this appeal, General Motors Corporation (GMC) challenges a trial court order requiring implementation of a class action settlement in a manner not set forth in the settlement agreement. GMC contends the trial court order makes impermissible substantive changes to the settlement agreement. The class action plaintiffs contend the trial court order was a proper exercise of the trial court's power to oversee the administration and implementation of the settlement agreement.


FACTUAL AND PROCEDURAL BACKGROUND


General Background


Beginning in 1992, class action lawsuits were filed nationwide against GMC by owners of GMC pickup trucks that had been manufactured with side-mounted fuel tanks located outside of the vehicle frame rails. Although attempts to settle the approximate 5.8 million class claims have been made, thus far, none have been successful. See e.g., In re: General Motors Corporation Pick-up Truck Fuel Tank Products Liability Litigation, 55 F.3d 768 (3rd Cir. 1995), cert. denied, 516 U.S. 824, 116 S.Ct. 88, 133 L.Ed.2d 45 (1995). In 1998, this court vacated a trial court judgment from the Eighteenth Judicial District Court certifying a nationwide settlement class and approving a settlement agreement. White v. General Motors Corporation, 97-1028 (La. App. 1 Cir. 6/29/98), 718 So.2d 480, writ denied, 98-2502, 98-2511, 98-2522 (La. 12/11/98), 729 So.2d 587, 590, 591. The matter was remanded to the trial court for further proceedings. On January 15, 1999, the trial court held a hearing, and on January 20, 1999, signed an "Order and Supplemental Findings in Support of Final Order and Judgment," reaffirming (1) its previous certification of the settlement class, (2) its final approval of the proposed settlement, and (3) its awards for attorney fees and costs.


Terms of the Settlement Agreement


Generally, the settlement agreement provides for members of the settlement class to receive a $1,000.00 certificate for each GM pickup truck owned toward the purchase of any new GM vehicle from an authorized GM dealer. The $1,000.00 certificate is valid for 15 months following the mailing of the final notice of the settlement. If the class member has sold his GM pickup truck, he may freely transfer his $1,000.00 certificate to the purchaser, who may use the certificate in the same manner as it could have been used by the settlement class member, provided the purchaser is the current owner of the truck. Following the initial 15 month period, the certificates are usable for additional periods of 18 and 35 months, and for lesser value, depending on whether the settlement class member is a consumer, fleet, or governmental owner.


In lieu of a $1,000.00 certificate, a settlement class member may sell or transfer his entire interest in his certificate, by exchanging the certificate for a $500.00 "third party certificate" that is usable for the unexpired portion of the initial 15 month period by a designated third party toward the purchase of a new GM vehicle, without proof of ownership of a GM pickup truck. To obtain a third party certificate, the $1,000.00 certificate must be sent with a written request that the third party certificate be issued in the name of the designated party, and stating the name and address of the designated third party.


Under the settlement agreement, holders of certificates need not trade in a GM pickup truck in order to use the certificates toward the purchase of a new GM vehicle; nor is a certificate holder required to disclose his intention to use a certificate toward the purchase of a new GM vehicle until he has made his best deal with the dealer. Only one certificate of any kind provided for in the sett

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