September 20, 2007 8:40 AM |
Posted by D. Matthew Allen |
Print this page
In one of a string of class actions filed against Florida automobile dealers related to the sale of an "etch" aftermarket product, a Middle District of Florida judge approved a classwide settlement of a class action against Crown Auto. See Veal v. Crown Auto Dealerships, Inc., 2007 WL 2700969 (M.D. Fla. Sept. 13, 2007). The class members received a sum between $125 and $500 in cash payments and some members also received a $100 coupon.
The author of this post, one of Crown's counsel, attended the fairness hearing. In approving the settlement, the judge emphasized that the coupons were redeemable for any service offered at a Crown dealership and that there was no expiration date on them.
Although this case pre-dated the Class Action Fairness Act, under CAFA, settlements containing a coupon component will receive heightened scrutiny. This case provides anecdotal evidence that it will become more difficult to obtain approval of settlements with coupons that (a) are conditioned on purchase of another product from the defendant and (b) expire within a short time period.