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A former Grass Valley car dealership must pay several hundred dollars each to about 100 customers who — under a recent settlement — were charged improper tire fees after they bought used vehicles.
But the big winner is a San Diego “lemon law” firm, which was awarded nearly $124,000 in legal fees.
Nevada County Superior Court Judge Thomas Anderson signed the motion for final approval Tuesday to settle a class action lawsuit against Grass Valley Ford Lincoln Mercury Nissan.
The suit covered customers who purchased a used vehicle from the dealer between 2005 and 2009 and were charged a tire fee that should only have been applied to new tires. The dealership relocated from Grass Valley to Auburn in December 2008.
“I was not involved in any of the proceedings,” said dealership owner Don Neronde Sr. “It was (handled) between the insurance company and the ambulance chaser (Auto Fraud Legal Center) ... I don't know what else to say.”
The class action suit was sparked by Penn Valley residents Karl and Erica Kugler, who bought a used 2001 Chevrolet Cavalier from the dealership in November 2007, according to court documents.
Karl Kugler was charged a tire fee of $8.75 that only applies to purchasers of new tires, according to a complaint filed in April 2008. He also was told he had to purchase gap insurance to receive financing, the complaint alleged.
The couple discovered numerous problems with the Chevy within a month of the purchase, Erica Kugler said.
“They kept telling me to bring it in and they would fix things,” she said.
But they kept finding more damage, leading them to believe the vehicle was in worse shape than had been represented at the time of purchase, she said.
“We wanted to get out of the contract,” Erica Kugler said. “They offered us $3,000 when we had paid $9,000 not even a month before.”
The Kuglers looked for a “lemon law” attorney online and filed a personal lawsuit, settling for $22,500, she said.
But the big winner is a San Diego “lemon law” firm, which was awarded nearly $124,000 in legal fees.
Nevada County Superior Court Judge Thomas Anderson signed the motion for final approval Tuesday to settle a class action lawsuit against Grass Valley Ford Lincoln Mercury Nissan.
The suit covered customers who purchased a used vehicle from the dealer between 2005 and 2009 and were charged a tire fee that should only have been applied to new tires. The dealership relocated from Grass Valley to Auburn in December 2008.
“I was not involved in any of the proceedings,” said dealership owner Don Neronde Sr. “It was (handled) between the insurance company and the ambulance chaser (Auto Fraud Legal Center) ... I don't know what else to say.”
The class action suit was sparked by Penn Valley residents Karl and Erica Kugler, who bought a used 2001 Chevrolet Cavalier from the dealership in November 2007, according to court documents.
Karl Kugler was charged a tire fee of $8.75 that only applies to purchasers of new tires, according to a complaint filed in April 2008. He also was told he had to purchase gap insurance to receive financing, the complaint alleged.
The couple discovered numerous problems with the Chevy within a month of the purchase, Erica Kugler said.
“They kept telling me to bring it in and they would fix things,” she said.
But they kept finding more damage, leading them to believe the vehicle was in worse shape than had been represented at the time of purchase, she said.
“We wanted to get out of the contract,” Erica Kugler said. “They offered us $3,000 when we had paid $9,000 not even a month before.”
The Kuglers looked for a “lemon law” attorney online and filed a personal lawsuit, settling for $22,500, she said.
Computer ‘glitch'
The class action suit was filed after the parties had gone to mediation twice, Erica Kugler said. "They would not work with us at all,” she said. “They said (the tire fee) was a glitch in the computer system.”
The car dealership agreed to settle in July. Class notices and claim forms were mailed to all customers who had purchased used vehicles between April 22, 2005 and May 8, 2009, and had been charged a tire fee.
Erica Kugler estimated about 100 claimants were identified, and each will receive $350 per vehicle purchased. The Kuglers, as the representative victims in the class action suit, were awarded $5,000. The attorney firm of Rosner, Barry & Babbitt was awarded $123,350.
“I'm glad it's finally happening,” Erica Kugler said of the approved settlement. “But it's still happening (to other people). People really need to do their homework ... It's deterred me from buying from a dealer.”
To contact Staff Writer Liz Kellar, e-mail lkellar@theunion.com or call (530) 477-4229.
