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A Jeep 4xe class action lawsuit will continue after a federal judge ruled against Fiat Chrysler in a motion to compel arbitration.
The lawsuit alleges Chrysler sold 2020-2024 Jeep Wrangler 4xe and 2022-2024 Jeep Grand Cherokee 4xe plug-in hybrid electric vehicles with 400-volt batteries that catch fire.
Several Jeep hybrid owners complain battery recalls have done nothing to prevent overheated batteries and fires. And the Jeep 4xe owners argue their Jeeps are dangerous not only to drive but even to park and charge.
The Jeep hybrid class action lawsuit says no matter what FCA does regarding Jeep 4xe recalls, all customers have been deprived of the benefit of the hybrid functionality and purchase values of their vehicles. Customers also complain the secondary market values have “plummeted.”
Motion to Compel Arbitration — Denied
Chrysler filed its motion by arguing the class action lawsuit should not even be in court because the owners who sued allegedly agreed to argue their allegations to a third-party arbitrator. But the plaintiffs contend they didn’t agree to any arbitration agreements and didn’t even know about them.
FCA says the arbitration details are in the warranty booklet found in every glovebox and titled, “Voluntary Binding Arbitration Provision.”
“[Y]ou agree that any dispute arising out of or relating to any aspect of the relationship between you and FCA US LLC will not be decided by a judge or jury but instead by a single arbitration administered by the American Arbitration Association (AAA) under its Consumer Arbitration Rules in effect at the time you signed the Agreement to Arbitrate.”
The agreement continues:
“You may opt out of arbitration within 30 days of taking delivery of the vehicle and signing the Arbitration Acknowledgment Form at the dealer. . . . If you do not opt out, then this provision to arbitrate is binding.”
But the plaintiffs contend they never received the Warranty Booklet “before or during the transaction where” they purchased or leased their Jeeps. And the owners assert they were “never informed of or presented the terms of the Arbitration Provision, including the right to opt-out, during their respective transactions.”
However, they all had access to the Warranty Booklets once they had access to their vehicles, and that occurred before the 30-day opt-out period expired. None of the plaintiffs opted out of the Arbitration Provision.
Judge Brandy R. McMillion ruled FCA has not met its burden of producing evidence “that would allow a reasonable jury to find that a contract exists.” The judge found the arbitration clause may have been in the Warranty Booklet, but Chrysler didn’t do enough to let a Jeep 4xe owner know the arbitration clause was there.
The Jeep 4xe battery class action lawsuit will continue in court.
The Jeep 4xe battery fire lawsuit was filed in the U.S. District Court for the Eastern District of Michigan (Southern Division): Frisch, et al., v. FCA US LLC.
The plaintiffs are represented by The Miller Law Firm PC, Lieff Cabraser Heimann & Bernstein, LLP, Slack Davis Sanger, LLP, and Lockridge Grindal Nauen PLLP.