Objection in the mail to the Court, Defense Counsel and Class Counsel:
July 1st, 2016
To whom it may concern,
As an “Eligible Owner” of an “Eligible Vehicle” we would like to offer our objection to the Class Action Settlement re: Volkswagen “Clean Diesel” Marketing, Sales Practices, and Product Liability Legislation, No. 3:15-md-2672 (N.D. Cal).
Our first and foremost objection pertains to the exclusion from the settlement class of Eligible Owners whose (1) Eligible Vehicle gets totaled and (2) consequently transfer his, her or its title to an insurance company after June 28, 2016, but before the opt-out date (September 16, 2016).
Document 1606-3 as filed on 06/28/16 states on page 13 of 28:
“If you owned an Eligible Vehicle that was functioning and operable as of September 18, 2015, but was subsequently totaled (and the title transferred to an insurance company), you will be eligible for the benefits under the Class Action Settlement as described in this notice at Question 19. There is one exception: if your car is totaled after June 28, 2016, but before the opt-out date (September 16, 2016), you are excluded from the settlement class and reserve your rights and claims against the Volkswagen entities.”
This means that most if not all Eligible Vehicles are currently insured for only a fraction of their “Buyback” value, and are essentially underinsured. Eligible Owners are forced to choose between risking a substantial loss (typically greater than the “Owner Restitution”) in case their Eligible Vehicle gets totaled, or stop using their Eligible Vehicles between June 28, 2016 and September 16, 2016.
It is our opinion that an Eligible Owner with an Eligible Vehicle that was (1) totaled and (2) title of which was consequently transferred to an insurance company after June 28, 2016, should not be excluded from the settlement class, but instead receive full Owner Restitution. This would at least cover part of the difference between current insurance value and Buyback value and relieve some of the newly assumed risk involved in driving their Eligible Vehicle.
Our second objection is the use of the “Clean Trade value of an Eligible Vehicle” for the “Base Value”. Eligible Owners purchased/leased their vehicles at retail value, and in case of a Buyback will likely purchase/lease a new vehicle at retail value. In essence, part of the Owner Restitution merely bridges the gap between clean trade value and retail value and is as such not recompense for loss due to Volkswagen's emissions fraud.
In our opinion the Base Value should therefore be the retail value of the vehicle on or about August 2015.
We do not wish to exclude ourselves from the Class Action Settlement.
Sincerely,