Warning about Class Action settlement
 

Those of us who received notice of the settlement of the class action entitled Eisen v Porsche Cars NA should be very careful to consider our options. I am a California civil litigation attorney and a 2003 Boxster owner, and as I read the proposed settlement terms, those who own 2001-2003 flat six Porsche cars (Boxsters and 911s) stand to lose all of our rights to sue Porsche if we experience an IMS failure and have NOT opted out of the settlement by the deadline specified.

Although the settlement applies to 2001-2005 models, no benefits are provided to owners of vehicles that have been in service over 10 years, i.e., 2001-2003 models (see page 4, item 7: "no Class member will be entitled to any payment or reimbursement for any IMS related damage occurring to a Class Vehicle more than ten (10) years after the vehicle was placed in service..."). The worst part is that not only will you not receive any benefits under the agreement, but you will lose the rights you would otherwise have (to seek compensation for engine failure or repair costs) if you do not opt out of the settlement.

What this settlement means is that the class attorneys and owners of 2004-2005 cars will benefit, at the expense of those who own 2001-2003 model cars. The really cynical (although logical from a legal standpoint) part of this is that you can either opt out or you can object - but you can't object if you opt out. Thus, the settlement is set up so that very few people, if anyone, will object, because by doing so they are waiving their chance to opt out. If someone objects and it makes no difference to the court (in terms of modifying the terms of settlement), the objector just gave up their rights to sue Porsche for IMS repairs. If that isn't a strong disincentive to potential objectors, I don't know what is.

I plan to file an objection next week, but I need to think about whether it is worth $10,000 (or whatever a new engine costs) in order to try to make the terms of settlement fair to owners of 2001-2003 model cars.