Judge OKs GM Settlement of Suit on Truck Gas Tanks

A Louisiana state judge has approved a settlement that will give $1,000 certificates to 5.8 million owners of General Motors Corp. trucks with allegedly dangerous side-mounted gas tanks.

But the auto maker may appeal the $28 million in fees and expenses, the maximum possible amount the judge could order, GM spokesman Ed Lechtzin said Friday.

“What we’ve got is an issue over fees that will be paid to the attorneys . . . and those attorneys who feel they should have been part of the group that negotiated the settlement,” Lechtzin said.

In addition, a small percentage of plaintiffs who challenged the settlement may also appeal the ruling.

Judge Jack T. Marionneaux on Dec. 20 approved the settlement of the class-action lawsuit, awarding anywhere from $580 million to $5 billion to the plaintiffs, depending on how the certificates are used.

The settlement covers 1973-86 C or K series trucks and 1987-91 R and V series trucks. About 10 million were made, and at least 5.5 million are still on the road, Lechtzin said.

The settlement applies to people who owned the trucks as of July 4 of this year, whether they bought the trucks new or used.

The certificates will be worth $1,000 toward any new GM car or light truck except for those made by Saturn and electric cars.

The value of the certificates drops to $500 if not used within 15 months or if sold or given to someone else within that time. The certificates can be sold, and the judge accepted experts’ testimony that the resale value would be at least $100.

If nobody appeals the ruling, the order will go into effect in 70 days. GM could begin sending out claim forms a month later, Lechtzin said.

GM shares fell 25 cents to close at $55.75 on the New York Stock Exchange.

The owners went to court because of reports that, because the gas tanks are outside the trucks’ frames, they could burst into flames in a side-impact crash.

The Transportation Department said in 1994 that there was a safety defect in the trucks, but it later voided that in a settlement with GM.

GM has consistently maintained that the trucks are safe.

“The class-action lawsuits have never really involved a safety issue,” Lechtzin said. “When they were filed back in ’93 originally, all they really alleged was loss of value to owners . . . because of adverse publicity over safety issues.”

The proposal would not settle lawsuits involving injuries alleged to have occurred as a result of the fuel tanks.