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February 02, 2009 01:00 AM

Michelin, Honda settle Pax lawsuit

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    Michelin North America Inc. and American Honda Motor Co. Inc. have agreed to compensate owners and lessees of certain Honda Odyssey and Acura RL models originally equipped with Michelin's Pax run-flat tire/wheel system as part of a settlement of a class-action lawsuit.

    Honda and Michelin will offer customers who purchased affected vehicles $300 rebates toward the purchase of a new vehicle of the same type without Pax system tires or $110 rebates on a spare tire kit and partial reimbursement for past replacements of the tires.

    Michelin also agreed to offer a supplemental three-year/36,000-mile treadwear warranty on the tires.

    The two also agreed to pay $3 million to the plantiffs' attorneys to settle their fees, costs and expenses.

    Federal District Court Judge Roger Titus gave preliminary approval on Jan. 14 for the settlement. The court is giving potential class members a chance to object to terms of the settlement or opt out of it completely, and the deadline for requests is May 8. A final hearing for the settlement has been scheduled for June 1.

    Both Michelin and Honda have been involved in an ongoing court battle over the run-flat tires that were original equipment on 2005-07 Honda Odyssey Touring and 2006-07 Acura RL models.

    Lawsuits filed against the companies alleged they failed to notify consumers that ``neither they nor any third parties maintained sufficient repair or replacement facilities'' to meet consumers' needs for the tires, that the costs of repairing and replacing the tires is unreasonable and the tires are ``defective and susceptible to premature wear.''

    Cases initially filed in Arizona, Illinois, Florida and New York were consolidated Feb. 15 in the District of Maryland. Honda said it sold about 78,000 vehicles equipped with Pax during the time in question.

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