VW “Clean” Diesel Fraud: A new approach

The many, many federal class action cases against Volkswagen have been consolidated in Northern California, and it looks like consumers are in for a slow slog. My co-counsel, Tim Quenelle, and I put our heads together and have developed a new strategy option.

We believe that we can efficiently handle individual cases for people who bought or leased the vehicles in Oregon. We are now accepting select individual cases for Oregon consumers.

Our goal is to move these cases quickly. The beauty is that if we win VW must pay our fees, so we are able to offer affordable representation to consumers who have been wronged here.

Let us know if you have more information. You can call me at 503.228.6474 or email me at david@davidsugerman.com or 503.228.6474.

VW Diesel Fraud–New filing: Bricker v. Volkswagen Group of America, Inc.

Catching up. Last week, we filed Bricker v. Volkswagen Group of America, Inc., U.S. District Court Case No. 3:15-cv-01785-PK (D. Or.) Along with my frequent collaborator, Oregon attorney Tim Quenelle, I joined forces with my friends at colleagues at Cohen & Malad from Indianapolis.

For those who like such things, here is a copy of the complaint: 1 – Complaint. The case is filed as a national class action. It protects the interests of anyone who purchased or leased one of the affected VW Group vehicles.

The case arises out of the well-publicized diesel engine fraud for Volkswagen “clean diesel” vehicles. In selling various VW and Audi diesel vehicles, the Volkswagen Group represented that these vehicles were high mileage and way low on emissions. As has been widely noted in the press, the high-dollar fraud rested upon sophisticated cheat code or defeat device that switched the vehicles’ operating modes when they were being operated in a parked condition for emissions testing.

The “clean” low-emissions mode did not and could not operate while actual consumers drove the vehicles. Instead of driving green, clean diesel cars, class members were driving dirty diesel vehicles that violated pollution standards.

People paid premium prices for these clean vehicles. In Oregon and Washington, especially, green consumers pay extra for earth-friendly products. VW hyped that clean, green technology in its sales and marketing efforts, and they made a mint. The clean diesel products pushed VW to the number one position in worldwide car sales.

No surprise that we’re hearing from a lot of people. We’ve developed an initial information email for those who have questions. Feel free to email me at david@davidsugerman.com if you need more information, and we’ll mail out the initial information. (I have not posted it here because doing so destroys confidentiality. And we really, really don’t want to do that.)

The case is almost certainly going to be treated as a multi-district litigation (“MDL”) case. When cases are assigned to the MDL, the rules and processes are different. Once it is assigned–probably not for a few months–I’ll update with more information.

In addition to our email packet, I would recommend connecting with us on Facebook if you are concerned about these issues. We tend to post there more frequently.  And of course, if our information and FB posts don’t answer your questions, feel free to call or email.


Bixby v. KBR–Oregon Congressional Delegation members push back on KBR and Department of Defense

The Oregon Qarmat Ali Vets’ case, Bixby v. KBR, continues. A group of 12 of these veterans won a stunning $85 million verdict against KBR for toxic harms suffered in Iraq at a KBR- contaminated site. After the verdict, and while the case was on KBR’s slow-track appeal, the U.S. Supreme Court issued, Walden v. Fiorean opinion in an unrelated case that changed the rules of jurisdiction. When the case came before the Ninth Circuit, it remanded the case because jurisdiction was improper.

And then KBR filed a claim for costs against these veterans, seeking approximately $850,000 from 12 sick vets who provided KBR with security. KBR got paid handsomely for its war-time work on a no-bid contract. KBR is seeking to have the United States indemnify it for all costs in these lawsuits. And even so–after winning on a technicality–KBR is now seeking to bankrupt these vets.

There are countless horror stories involving our vets. And this is one more. They served. They were sent. They did their jobs. They sacrificed. And now this.

It is perhaps too much to hope that anyone will care. And that is the point of this post. Thanks are due to members of the Oregon Congressional Delegation: Senator Wyden, Senator Merkley, Rep. Blumanauer, Rep. Schrader, Rep. Bonamici, and Rep. DeFazio did Oregon proud when they wrote this  Ltr Or Cong to DOD 15 July 2015 letter to the Department of Defense, blasting KBR and calling on the Department of Defense to take over these cases and resolve them equitably.

“These veterans deserve better***.”  I couldn’t agree more.


BP Class Action Update: Class Notice

Finally. Class notice has started in our class action against BP. The case involves illegal debit card charges levied on Oregon gas purchasers. We’re suing under the Unlawful Trade Practices Act because BP violates the Oregon rules governing gasoline price advertising.

Here is a link to the class action notice website.

Trial is set to begin January 14, 2014. If we win, members of the class may be eligible to claim up to $200 for these illegal transactions. More detail as it becomes available. For those in the class, please visit the website. You might want to register there so that the administrator can contact you if that becomes important.

Want more information about the case? Go here and here.

Feel free to call us or email if you think you might be part of the class or if you have stories to share. I am lead counsel for the class.


David Sugerman

Update: Class members’ brief filed in consumer fraud case against Career Ed Corp and Western Culinary Institute

On our long-running consumer fraud class action against Career Education Corp and Western Culinary Institute/Le Cordon Bleu Portland, I am pleased to report that we filed our answering brief in the Oregon Court of Appeals today. It’s a monster, and if the WordPress Gods are with me, it appears in PDF here: Brief – Answering FINAL

My dear friend and colleague, Maureen Leonard, joined our team to handle the briefing. The brief is her work, and it is a thing of beauty.

About the brief:

For consumers and class members-This is a technical brief on rules about procedure, appeals, and arbitration that might cause you to snooze. The gist is that Career Education Corp. was content to use the court system to enforce its rights and then when things were going bad, CEC sought to delay by filing another motion to compel arbitration.

For attorneys-The posture is such that this is something of a one-off brief and case. Still, if you want to see an appellate master at work, read Maureen’s work.

So next up is CEC/WCI/LCB-Portland reply brief. And then it is on to oral argument in front of a three-judge panel. We’ll keep you posted, of course.

David Sugerman

Case update: Consumer fraud case against BP headed to trial

Yesterday, Judge LaBarre ruled from the bench on the parties’ motions for summary judgment in our pending consumer fraud against BP. He denied all motions. The case is going to trial.

Background on the case is here, here, and here. It arises out of BP gas sales at ARCO and am-pm mini-markets.

BP charges debit card customers a $.35 debit card fee but does not disclose the charge on its street signs, on its price signs or on its pumps.

Consumers argue that BP’s undisclosed debit card charge violates Oregon rules on gasoline sales.  The consumer fraud claim arises under the Oregon Unlawful Trade Practices Act, ORS 646.608(1)(u).

The Court deferred hearing the class certification motion until August 30, but that motion is fully briefed and ready to go. The Court took up the summary judgment motions. BP argued that it was entitled to summary judgment for a number of reasons, including that it wasn’t required to tell consumers that debit card users would be charged a fee on gas purchases.

A three-hour oral argument put both parties’ positions to the test.

Judge LaBarre announced his decision from the bench, ordered BP to obtain electronic data, and set a schedule for the remainder of the case, including a trial that starts January 13, 2014.

Good progress, to be sure. But far to go.

David Sugerman

Update: Career Education Corp files its appeal brief

For those interested, Career Education Corp and Western Culinary Institute/Le Cordon Bleu Portland filed their appeal brief in our long-running consumer fraud class action, Surrett v. Western Culinary Institute. The brief is long and technical. It focuses on things like arbitration clauses and class action procedure. If you’re really interested, I’ve uploaded it here: Brief – CEC WCI Opening Brief.   (Note: if you’re interested enough to read it for fun, it occurs to me that you might need a hobby. But I digress.)

We are fortunate to have recruited Portland attorney Maureen Leonard to lead on the appeal. In addition to being a dear friend, Maureen is a talented and well-respected lawyer who limits her practice to appeals. We will file a responding brief, and then CEC/WCI files a reply. After their final brief, the appeal will be set for oral argument. There is no firm timeline for when we will be through the appeal process. That said, we are committed to the case and will see it through to the end.

I will post our completed brief once it is up and the occasional update when we have more news. Meantime, thanks for your interest and patience.


Economic Fairness Oregon weighs in on ending the consumer fraud exemption for insurance companies

Nice piece here at Blue Oregon from Economic Fairness of Oregon relating to the need to end the consumer fraud exemption for insurance companies. Disclosure: When it comes to EFO, I’ve long been an unabashed  fanboy–they do tremendous pro-consumer work.

HB 3160-A is pending in the Oregon Senate. To my way of thinking this isn’t a blue or red issue. Last I checked, insurance companies don’t discriminate based on political affiliation. They hose the D’s and the R’s, those who live in the city and those who live in the country, the rich and the poor. The things that divide us simply do not matter when it comes to insurance companies taking advantage.

Let’s hope our State senate is listening to EFO and constituents who are pushing on this issue. It’s time to end the special break for insurance companies. Like every other business, they should be covered by Oregon consumer fraud laws.

Let’s end Oregon insurance companies exemption from Oregon consumer protection laws

Great KOIN-6 News report here KOIN-6 Iteam Hold Oregon insurers accountable highlighting the loophole that gives Oregon insurance companies a pass on Oregon’s Unlawful Trade Practice Act, our signature consumer protection law.

A pending bill, HB 3160-A would close the loophole. The bill amends the Oregon Unlawful Trade Practices Act to cover insurance companies.  Like all other Oregon businesses, insurance companies should be held to basic levels of fairness when dealing with consumers. It is time that our legislators act to rein in those insurance companies that engage in fraud and abuse.

That’s why we support HB 3160-A. You should too.

Oregon Court Confirms Jury Verdict for Oregon Qarmat Ali Veterans

It’s a good day for the Oregon Qarmat Ali veterans.

Today,  the Court confirmed the jury verdict in favor of the first 12 Oregon Army National Guard veterans who suffered contamination injuries at the Qarmat Ali Water Treatment Plant in Iraq in 2003.  Here is a link to the PDF opinion:  724 – opinion & order re trial

Judge Papak denied virtually all of KBR’s motions for which it sought a new a trial. Judge Papak left intact each veteran’s $6,250,000  punitive damage assessment and reduced each veteran’s compensatory damage assessment from $850,000 to $500,000. Judge Papak reduced those damages based on a case that came down after argument, Howell v. Boyle, 353 Or. 359, 298 P.3d 1 (2013). Just so we’re clear, the veterans disagree with the reduction part of Judge Papak’s legal ruling.

In any event, this is a great day for the veterans and their families. They told their stories to the jury, and the jury did justice. After a detailed, independent review, Judge Papak confirmed the jury’s findings.

For my part, I could not be happier for these vets and their families. When our system of justice works, it is a thing of beauty.