Opt-out plaintiff’s suit against Ford could mean more money for class

LOS ANGELES -- A bellwether trial involving a Ford vehicle owner who says the car maker knew about and failed to address transmission defects in Focus and Fiesta models began Tuesday in federal court and will likely have a major impact on related cases, including a class action settlement rejected by the appellate court.

The trial is one of four expected to be heard in the coming months brought by car owners who opted out of a class action against Ford to join a multi-district, multi-state litigation seeking damages from Ford Motor Co.

While class and litigation members are of two distinct groups, the result of the multi-district litigation trial now before U.S. District Judge Andre Birotte Jr. will greatly influence future negotiations in the class action settlement, said class attorney Michael T. Kirkpatrick of Public Citizen.

"The results of the MDL trial are going to provide important information about whether the class action settlement is fair or not," Kirkpatrick said in a phone interview.

A $35 million settlement in the class action was approved by Birotte in 2017. However, after Public Citizen challenged how much money would be awarded to consumers, arguing the vast majority of members would have received nothing, a 9th U.S. Circuit Court of Appeals panel rejected it 2-1. In September, the panel said the district court had not thoroughly investigated the settlement terms and sent it back.

The trial that opened Tuesday concerns complaints by litigation member Mark Pedante, represented by Russell W. Higgins of Knight Law Group LLP. Before jury selection, there was some quibbling about whether Ford, represented by Spencer P. Hugret of Gordan Rees Scully Mansukhani LLP, would be allowed to mention the settlement in its opening. Mark Pedante v. Ford Motor Co. 17-CV06656 (C.D. Cal., filed Sept. 8, 2017).

The trial will be closely watched by class members gearing up for settlement negotiations in December, said Kirkpatrick.

"If the jury comes back big for the plaintiff in any of these cases, we're going to know that the value of the potential recovery in the class action could be astronomical," Kirkpatrick said. "And even if you settle for a tiny fraction of the potential recovery in the class action, ... even a tiny percentage of potential recovery is still a heck of a lot of money and a lot more than Ford expected to pay under the original settlement."

On the other hand, "if Ford wins and the plaintiffs in these bellwether cases get zero, then all of a sudden the class action settlement doesn't look so bad," he added.

The class and multi-district litigation members are comprised of current and former car owners who claim their Focus and Fiesta models made between 2011 and 2016 have delayed acceleration and malfunctioning transmissions that caused accidents. Ford faces a potential $4 billion liability, according to reports in the Detroit Free Press.

Birotte said he expects the trial will end by next Wednesday.