Facts

Bruce Eisen filed a class action against Porsche Cars North America Inc., concerning 2001-2005 Porsche Boxter vehicles and 2001-2005 Porsche 911 vehicles.

PLAINTIFF'S CONTENTIONS:
Plaintiff, who owned a subject Porsche vehicle, alleged that the subject vehicles had defects in the design, manufacture, and assembly of the engine. The defect caused mechanical failures in the class vehicles. Plaintiff alleged that the mechanical failure was due to an intermediate shaft condition that caused engine failure or engine damage.

Plaintiff asserted claims for violations of California Consumer Legal Remedies Act, violations of Unfair Business Practices Act, and fraud by omission.

DEFENDANT'S CONTENTIONS:
Porsche moved to dismiss the complaint for failure to plead with specificity. Porsche also argued that California law does not allow recovery for alleged product defects after the manufacturer's warranty had expired. Porsche alleged that plaintiff's UCL claim also failed because he failed to plead any conduct that qualified as a violation of the statute. Additionally, plaintiff's common law fraud by omission claim also failed because he failed to show that Porsche had concealed a material fact with respect to the class vehicles.

Result

The parties reached a settlement. Under which, Porsche agreed to reimburse or compensate class members for repair or replacement costs attributed to the intermediate shaft condition, subject to certain time and mileage limitations. Porsche also agreed to pay limited out-of-pocket costs for towing and/or a replacement rental vehicle. As of May 2014, benefits made available to class members were $4 million. Jill Weitzner initially objected to the settlement. However, Wietzner and her counsel later agreed to withdraw the objection in exchange for $25,000.

Other Information

FILING DATE: Nov. 10, 2011.