Mendoza v. Hyundai Motor Company, LTD et al

Filing 42

ORDER APPROVING 41 STIPULATION TO EXTEND TIME TO FILE CONSOLIDATED COMPLAINT AND CONTINUE INITIAL CASE MANAGEMENT CONFERENCE. Amended Pleadings due by 11/12/2015. Initial Case Management Conference set for 11/19/2015 11:00 AM in Courtroom 3, 5th Floor, San Jose. Signed by Judge Beth Labson Freeman on 10/2/2015. (blflc1, COURT STAFF) (Filed on 10/2/2015)

1
2
3
4
5
6
7
8
9
10
11
12
13
14

Eric H. Gibbs (SBN 178658)
Dylan Hughes (SBN 209113)
Steve Lopez (SBN 300540)
GIBBS LAW GROUP LLP
One Kaiser Plaza, Suite 1125
Oakland, California 94612
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Joseph G. Sauder (pro hac vice)
Matthew D. Schelkopf (pro hac vice)
CHIMICLES & TIKELLIS LLP
One Haverford Centre
361 West Lancaster Avenue
Haverford, Pennsylvania 19041
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]

15

Co-Lead Interim Class Counsel

16

[List of Counsel Continued on Signature Page]

17
18

UNITED STATES DISTRICT COURT FOR THE
NORTHERN DISTRICT OF CALIFORNIA
SAN JOSE DIVISION

19
20

IN RE: HYUNDAI SONATA ENGINE
LITIGATION

Case No. 5:15-cv-1685-BLF

21

Hon. Beth Labson Freeman

22
24

STIPULATION TO EXTEND TIME TO
FILE CONSOLIDATED COMPLAINT
AND CONTINUE INITIAL CASE
MANAGEMENT CONFERENCE

25

L.R. 7-12

23

26
27
28

STIP. TO EXTEND TIME TO FILE CONSOL. COMPLAINT AND CONTINUE INITIAL CMC
CASE NO. 5:15-cv-1685-BLF

Plaintiffs Beth Graham and Elizabeth Mendoza, and Defendant Hyundai Motor America, who

1
2

are the parties in the consolidated case pending before this Court, In re: Hyundai Sonata Engine

3

Litigation, 5:15-cv-01685-BLF, hereby stipulate as follows:

4

WHEREAS, this litigation arises out of allegations (denied by Defendant) that Hyundai

5

manufactured, sold, and leased Sonata vehicles that have an engine defect that can cause sudden engine

6

seizure;
WHEREAS, counsel for Plaintiff Mendoza filed Mendoza v. Hyundai Motor Company, Ltd.,

7
8

No. 5:15-cv-1685-BLF on April 14, 2015, and counsel for Plaintiff Graham filed Graham v. Hyundai

9

Motor America, Inc., No. 5:15-cv-2071-BLF, on May 7, 2015;
WHEREAS, on June 24, 2015, the Court issued Orders consolidating the two cases under the

10
11

present master docket and master file in Case No. 5:15-cv-1685-BLF, ordering Plaintiffs to file a

12

consolidated complaint, and continuing the Initial Case Management Conference until October 15,

13

2015;

14
15
16

WHEREAS, on August 20, 2015, the Court issued an Order extending Plaintiffs’ time to file a
consolidated complaint, currently due on October 8, 2015.
WHEREAS, on September 8, 2015, the Court issued an Order appointing Eric H. Gibbs and

17

David Stein of Gibbs Law Group LLP and Matthew D. Schelkopf and Joseph G. Sauder of Chimicles

18

& Tikellis LLP as Co-Lead Interim Class Counsel;

19

WHEREAS, since consolidation, counsel for the parties have met and conferred several times

20

by telephone and in person, and have had several productive discussions regarding the allegations in the

21

complaint, defenses to those allegations, scheduling, and potential resolution of this matter;

22

WHEREAS, on September 2, 2015, the parties conferred with legal and engineering

23

representatives from Hyundai and discussed a recall announced by the National Highway

24

Transportation Safety Agency and Hyundai on September 24, 2015, whose details are described in the

25

Safety Recall Report attached as Exhibit 1;

26
27
28

WHEREAS, the parties are currently scheduled to enter mediation on October 29, 2015, with
the assistance of Hon. James P. Kleinberg (Ret.) of JAMS;
WHEREAS, the parties believe that they will make substantial progress in their discussions
1
STIP. TO EXTEND TIME TO FILE CONSOL. COMPLAINT AND CONTINUE INITIAL CMC
CASE NO. 5:15-cv-1685-BLF

1

regarding resolution of this action in mediation and believe it will be the most efficient and expeditious

2

manner of advancing this litigation;
WHEREAS, as a result, the parties seek to extend Plaintiffs’ time to file a consolidated

3
4

complaint and continue the Case Management Conference currently set for October 15, 2015.

5

THE PARTIES HEREBY STIPULATE AND AGREE, subject to the Court’s approval, that:

6

1.

Plaintiffs’ time to file a consolidated complaint is extended until November 12, 2015;

2.

The Case Management Conference set for October 15, 2015 shall be continued until

7
8
9
10

and

November 19, 2015.
IT IS SO STIPULATED.

11
12

Dated: October 1, 2015

GIBBS LAW GROUP LLP

13
14

By:

15

Eric H. Gibbs
Dylan Hughes
Steve Lopez
One Kaiser Plaza, Suite 1125
Oakland, California 94612
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]

16
17
18
19
20

/s/ Eric H. Gibbs

21

27

Matthew D. Schelkopf
Joseph G. Sauder
CHIMICLES & TIKELLIS LLP
One Haverford Centre
361 West Lancaster Avenue
Haverford, Pennsylvania 19041
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]

28

Co-Lead Interim Class Counsel

22
23
24
25
26

2
STIP. TO EXTEND TIME TO FILE CONSOL. COMPLAINT AND CONTINUE INITIAL CMC
CASE NO. 5:15-cv-1685-BLF

1
2

Dated: October 1, 2015

By:

/s/ Shon Morgan

Shon Morgan
Joseph R. Ashby
QUINN EMANUEL URQUHART
& SULLIVAN, LLP
865 S. Figueroa St. 10th Floor
Los Angeles, California 90017
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]

3
4
5
6
7
8
9

Counsel for Defendant Hyundai Motor America, Inc.

10
11

*

*

*

12
13

ORDER

14
15

PURSUANT TO STIPULATION IT IS SO ORDERED.

16
17
18

Dated:
HONORABLE BETH L. FREEMAN
UNITED STATES DISTRICT COURT JUDGE

19
20
21
22
23
24
25
26
27
28
3
STIP. TO EXTEND TIME TO FILE CONSOL. COMPLAINT AND CONTINUE INITIAL CMC
CASE NO. 5:15-cv-1685-BLF

ATTESTATION OF E-FILED SIGNATURE

1

I, Eric H. Gibbs, am the ECF User whose ID and password are being used to file the foregoing

2
3

Stipulation to Extend Time to File Consolidated Complaint and Continue Initial Case Management

4

Conference. In compliance with Civil L.R. 5-1(i)(3), I hereby attest that the other signatories listed

5

have concurred in this filing.

6
7

Dated: October 1, 2015

8

By:

/s/ Eric H. Gibbs

9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
4
STIP. TO EXTEND TIME TO FILE CONSOL. COMPLAINT AND CONTINUE INITIAL CMC
CASE NO. 5:15-cv-1685-BLF

EXHIBIT 1

OMB Control No.: 2127-0004

Part 573 Safety Recall Report

15V-568

Manufacturer Name : Hyundai Motor America
Submission Date : SEP 10,2015
NHTSA Recall No. : 15V-568
Manufacturer Recall No. : 132
Manufacturer Information :
Manufacturer Name : Hyundai Motor America
Address : 10550 Talbert Avenue
Fountain Valley CA 92708
Company phone : [phone]

Population :
Number of potentially involved : 470,000
Estimated percentage with defect : 2

Vehicle : 2011-2012 Hyundai Sonata
Vehicle Type : LIGHT VEHICLES
Body Style :
Power Train : GAS
Descriptive Information : Model Year 2011 and 2012 Hyundai Sonata vehicles manufactured at Hyundai
Motor Manufacturing Alabama equipped with 2.0 liter and 2.4 liter Gasoline Direct
injection engines.
Production Dates : DEC 11, 2009 - APR 12, 2012

Vehicle Information :

Begin : NR

VIN (Vehicle Identification Number) Range

End : NR

Not sequential VINs

Description of Defect :
Description of the Defect : Hyundai has determined that metal debris may have been generated from factory
machining operations as part of the manufacturing of the engine crankshaft during
the subject production period. As part of the machining processes, the engine
crankshaft is cleaned to remove metallic debris. If the debris is not completely
removed from the crankshaft’s oil passages, it can be forced into the connecting rod
oiling passages restricting oil flow to the bearings. Since bearings are cooled by oil
flow between the bearing and journal, a reduction in the flow of oil may raise
bearing temperatures increasing the potential of premature bearing wear. A worn
connecting rod bearing will produce a metallic, cyclic knocking noise from the
engine which increases in frequency as the engine rpm increases. A worn
connecting rod bearing may also result in illumination of the oil pressure lamp in
the instrument cluster. If the vehicle continues to be driven with a worn connecting
rod bearing, the bearing can fail, and the vehicle could stall while in motion.
FMVSS 1 :NR
FMVSS 2 :NR
The information contained in this report was submitted pursuant to 49 CFR §573

Part 573 Safety Recall Report

15V-568

Page

Description of the Safety Risk : An engine stall at higher speeds can increase the risk of a crash.
Description of the Cause : NR
Identification of Any Warning that can Occur : 1)
Knocking noise from engine
2)
Illumination of engine warning lamp
Supplier Identification :
Component Manufacturer
Name : NR
Address : NR
NR
Country : NR
Chronology :
The 2011 Hyundai Sonata was the first Hyundai vehicle to use an engine manufactured in Hyundai’s Alabama
engine factory. As is the case with any production process, revisions were made to the manufacturing
processes. Of note, Hyundai initially used a mechanical deburring process to remove machining debris from
the crankshaft. In April of 2012, Hyundai incorporated a high pressure “wet blast” process to remove metallic
debris from the component.
As the subject vehicles gained field experience, Hyundai became aware of engine-related warranty claims in
the field. The vast majority of those claims evidenced that customers were responding to substantial noise, or
the vehicle’s check engine light, and bringing their vehicles to service as a result of those warnings. Many
customers also complained after the warranty was no longer available. In a relatively smaller number of
instances, customers reported stalling events. However, the majority of those customers did not mention the
speed at which the vehicle was moving at the time of the reported stalling event. These customers were also
able to restart their vehicles and/or move the vehicles to the side of the road.
In June, 2015, NHTSA raised the issue with Hyundai. Hyundai explained that, as of that time, it did not
consider the issue to be safety-related due to the substantial warnings and the evidence that customers were
responding to the warnings, among other reasons. Upon reviewing Hyundai’s information, the Office of
Defects Investigation informed Hyundai of its concern over the potential for higher speed stalling events.
These discussions occurred throughout August, 2015. On September 2, 2015, this issue was discussed at
HMA’s Technical Committee meeting. At that time, Hyundai decided conduct the field action as a safety recall
and to file this Defect Information Report.
To date, there have been no reports of accidents or injuries attributed to this condition.

Description of Remedy Program : 1)
Hyundai Motor America will notify owners of affected vehicles to
return their vehicles to their Hyundai dealers to inspect, and if necessary,
replace the engine assembly.

Description of Remedy :

2)

Hyundai Motor America will increase the warranty for the engine

The information contained in this report was submitted pursuant to 49 CFR §573

2

Part 573 Safety Recall Report

15V-568

Page

sub-assembly (short block) to 10 years/120,000 miles for both original and
subsequent owners of 2011 and 2012 Sonatas manufactured at Hyundai
Motor Manufacturing Alabama equipped with 2.0 liter and 2.4 liter Gasoline
Direct injection engines.
3)
Hyundai will provide reimbursement to owners for repairs
according to the plan submitted on November 2, 2014.

How Remedy Component Differs from Recalled Component : NR
Identify How/When Recall Condition was Corrected in Production : The cleaning process was revised in April
2012 to utilize a hydraulic pressure “wet
blast” process to clean the crankshaft oil
passages.

Recall Schedule :
Description of Recall Schedule : NR

Planned Dealer Notification Date : NOV 09, 2015 - NOV 09, 2015

Planned Owner Notification Date : NOV 09, 2015 - NOV 09, 2015

* NR - Not Reported

The information contained in this report was submitted pursuant to 49 CFR §573

3