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A Hyundai Palisade tow hitch recall lawsuit is on hold due to Hyundai’s appeal to the Ninth Circuit.
The class action lawsuit alleges 2020-2022 Hyundai Palisade SUVs are at risk of fires because the tow hitch wiring harness modules are defective.
A Hyundai Palisade tow hitch recall was announced in 2022 after the automaker determined the wiring harness modules could suffer from electrical short circuits.
Specifically, an electrical short could occur from moisture and debris on the printed circuit board for the Palisade tow hitch wiring harness module.
Hyundai said a fire could occur whether a Palisade was parked or in motion. This was enough for Hyundai to warn Palisade owners to park outside and away from anything that could catch fire.
Hyundai knew of eight melting events in the U.S. and three fires and eight melting incidents in Canada when the Palisade tow hitch recall was announced in 2022.
According to the class action lawsuit, a Hyundai Palisade owner may pay $475 to $750 for the optional tow hitch and tow wiring harness module accessories necessary to operate the trailer’s turn signals and brake lights.
Hyundai dealers removed the tow wiring harness module fuses as interim repairs while waiting for replacement parts, then as a final repair dealers installed new 15A fuses and new wire extension kits.
Even though the Hyundai Palisade tow hitch recall apparently repaired the problem, the class action lawsuit alleges Hyundai took too long to recall the Palisades. The lawsuit also says the Palisades have lost value simply because of the recall.
Hyundai Palisade Tow Hitch Lawsuit Ruling Appealed
Hyundai filed a motion to compel arbitration by alleging the class action lawsuit shouldn’t exist because the plaintiffs agreed to arbitrate their claims, not include them in a class action filed for more than $5 million.
Judge Hernan D. Vera denied Hyundai’s motion to compel arbitration and set a Palisade tow hitch lawsuit trial for August 2026.
However, Hyundai filed an appeal of Judge Vera’s arbitration denial, and the Ninth Circuit Court of Appeals has agreed to hear Hyundai’s arguments.
CarComplaints.com will update our website with the appeals court decision.
The Hyundai Palisade tow hitch recall lawsuit was filed in the U.S. District Court for the Central District of California: Dana Jaye Bal, et al., v. Hyundai Motor America.
The plaintiffs are represented by Lemberg Law, LLC.