Honolulu Ford settles
lawsuit over fees

Honolulu Ford Inc. could provide as much as $1.6 million in in-kind services to settle a class-action lawsuit involving license and documentation fees that the auto dealership charged thousands of customers.

The proposed settlement, which still must be approved by state Circuit Judge Sabrina McKenna, provides certificates redeemable for about $117 in maintenance services to as many as 14,100 customers who bought cars and trucks from the dealership between 1999 and 2005.

The settlement came after McKenna rejected several allegations made under plaintiff Candy Silva's overarching claim that the dealership's license and documentation fees were unfair and deceptive.

The judge also had eliminated class-action status for most of the allegations; other customers seeking to make those claims would have had to sue individually.

McKenna's earlier rulings left intact a specific claim that the two fees are unfair and deceptive because they are duplicative. The rulings also left standing allegations that Honolulu Ford never studied the paperwork-processing costs that the documentation fee supposedly covered and unfairly deceived customers into thinking the documentation fee was mandatory when it was not.

Under the proposed settlement, customers will receive certificates redeemable for a free oil change, tire rotation, brake inspection and safety inspection. The certificates are redeemable only for new vehicles bought from the dealership.

Gary Grimmer, an attorney for Honolulu Ford, said the dealership agreed to settle the suit because it would cost less than continuing to fight the lawsuit and because the dealership wanted to assure customers of its commitment to honesty and quality service.

McKenna has given preliminary approval to the settlement; a hearing for final approval is scheduled for next month. Customers who choose to opt out of the settlement have until early September to contact plaintiffs lawyers George Van Buren and Paul Alston.