Case Results

Oquendo v. Chrysler Group LLC (Settlement Valued at Over $10 Million)

May 2016

Summary: Mr. Gutman filed a class action involving problems with the 2014 Jeep Cherokee in a nationally publicized case.  While Chrysler initially contested the matter, it was resolved for a settlement believed to be valued at over $10 million dollars.       

Chrysler Hit With Jeep Cherokee Class Action Over Transmission Problems - Top Class Actions

Compensation Ordered in National Case Involving 2014 Chrysler Transmission Problem

The Chrysler Group LLC, which is now known as FCA US LLC, was hit with an amended class action lawsuit in a New Jersey federal court, alleging that the 2014 Jeep Cherokees have defective transmissions that are wrought with problems.

Plaintiff Stacy Oquendo, who lives in New Jersey, says in her Jeep Cherokee class action lawsuit filed on Aug. 6 that she purchased her Jeep Cherokee in April 2014, which she has since had “repeated problems” with.

“The repair history reflects complaints of the transmission not shifting properly, and other transmission problems,” the class action lawsuit says.

Because of the transmission problems she claims her Jeep Cherokee has faced, Oquendo says that “she has lost the use of her vehicle for repair, the value of the vehicle is diminished because of its frequent and persistent problems, and the vehicle poses safety concerns to the driver and occupants.”

The New Jersey woman claims that her Jeep Cherokee has faced an “abnormal” amount of “transmission, problems, malfunction, and failure.”

And she claims that she's not the only 2014 Jeep Cherokee owner that has had these types of problems. Oquendo cites various publications that have reported on the transmission problems occurring in other 2014 Jeep Cherokees as well.

The Jeep Cherokee class action lawsuit cited Car and Driver as one such publication that has cited similar transmission problems: “At least 12 out of 30 complaints submitted thus far to the National Highway Traffic Safety Administration cite poor shift quality, including transmissions that held gears for too long or suddenly shifted into neutral.”

The industry magazine says that “Chrysler delayed the Cherokee's launch last fall by several weeks to make last-minute fixes to the new transmission and then released two technical service bulletins,” which included “an entire step-by-step process to recalibrate the adaptive software to better match the owner's driving style.”

These fixes, Car and Driver explains, are “supposed to smooth out shifts from first to second and second to third.”

The publication added that in its “reviews of a four-cylinder and various V-6 Cherokees, we noticed erratic behavior from the nine-speed. It would deliver crisp, well-timed shifts on some occasions, yet on others would respond with slurred and delayed changes.”

Oquendo says that the problems described by Car and Driver are the problems that both she and other potential Class Members have experienced.

However, the Jeep Cherokee class action says that instead of acknowledging “the problem Chrysler has proceeded to deny and/or conceal the problem and directed its dealers to provide deceptive, false, or misleading explanations for the failure to provide warranty coverage and reimbursement.”

The New Jersey woman is charging Chrysler with breach of express warranty, breach of implied warranty of merchantability, fraud, violating the Consumer Fraud Act, and violating the Magnuson-Moss Act.

Oquendo is looking to represent a class of 2014 Jeep Cherokee owners who purchased their vehicles in New Jersey, New York, Delaware and Connecticut, have experienced transmission problems with their vehicles, have had to pay for rental vehicles during repairs, and have also been hurt because of the loss of use and diminished value of their vehicles.

The Jeep Cherokee class action lawsuit was first filed in in a New Jersey state court in May, but Chrysler had the Jeep Cherokee class action lawsuit transferred to the federal court because there were cross-state issues.

Oquendo is represented by Howard A. Gutman of the Law Office of Howard A. Gutman.

Chrysler is represented by Thomas R. Curtin of Graham Curtin PA.

The Jeep Cherokee Class Action Lawsuit is Oquendo v. Chrysler Group LLC, Case No. 3:15-cv-05056 in the U.S. District Court for the District of New Jersey.

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The Jeep Cherokee Transmission Class Action Lawsuit was dismissed on May 2, 2016, because it was resolved for a settlement believed to be valued at over $10 million dollars. 

Practice area(s): Lemon Law

Court: U.S. District Court for the District of New Jersey

Howard Gutman

Howard Gutman has been fighting for consumer rights and representing commercial interests for over 20 years. Нe has a deep knowledge of fraud, consumer, warranty, and lemon law, and will handle your case with honesty and experience.

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