Facts

Heather Gutierrez and Connie Kaupa filed a class action against American Honda Motor Co. Inc.

PLAINTIFFS' CONTENTIONS:
Plaintiffs sued defendants on behalf of others who currently owned or leased a Honda vehicle equipped with factory installed side air bag system or who previously owned or leased a vehicle that experienced an inadvertent deployment of the side airbag system.

Plaintiffs alleged that defendants had vehicles that were equipped with a side airbag system. Plaintiffs alleged that the side air bag system was defective that caused inadvertent or spontaneous deployment while the vehicle is being driven. Plaintiffs claimed that such spontaneous and inadvertent deployment created a dangerous condition. Plaintiffs alleged that defendants had been aware of the defects since 2009, but failed to warn consumers about it. Moreover, plaintiffs also accused defendants of issuing misleading statements about the dangerous defect, and refused to reimburse consumers whose vehicles experienced such deployment.

Plaintiffs asserted claims for unlawful, unfair and fraudulent business practices and unfair and deceptive business practices under the California Business and Professions Code.

DEFENDANTS' CONTENTIONS:
Defendants denied the allegations, and asserted various affirmative defenses.

Result

The parties reached a settlement, under which, Honda agreed to reimburse class members of out-of-pocket expenses incurred to repair a spontaneous or inadvertent deployment. Honda also agreed to repair or replace vehicles that experienced a "reimbursable deployment" within two years of the effective date of the settlement, free of charge.