Suzuki’s Libel Suit Against Consumer Reports Rejected

American Suzuki Motor Corp.’s libel suit against Consumer Reports has been tossed out by a federal judge in Orange County, but the car importer says it still plans to pursue a suit against the magazine over a devastating review that killed sales of the Samurai sports utility vehicle.

Suzuki has the option of filing an amended suit against Yonkers, N.Y.-based Consumers Union and its Consumer Reports magazine on grounds of product disparagement, or unfair criticism. It is a common claim in business cases in which a company believes a product has been unfairly maligned.

In the 1988 review, the magazine said the Samurai sports utility vehicle had a tendency to roll over when cornering or veering sharply to avoid crashes and suggested that it was an unsafe and improperly designed vehicle. Sales of the Samurai fell dramatically in ensuing years, but Suzuki did not sue Consumers Union until last year, after the magazine republished the 1988 review.

George Ball, corporate counsel for the car’s Brea-based importer, said Suzuki plans to file its amended suit by the beginning of March.

The company still must persuade District Judge Alicemarie Stotler that it sustained actual damages because of the Consumer Reports review. Under the statute of limitations, Suzuki can only claim damages from April of 1994 through 1996--years after review was published.