Class Counsel Announce Federal Court Grants Preliminary Approval to Proposed Nationwide Consumer Class Action Settlement With Carrier Corporation Over Alleged Defects in High-Efficiency Furnaces: Settlement Applies to High-Efficiency Carrier, Brya

SEATTLE (Business Wire EON) November 27, 2007 -- Class counsel announced that United States District Court Judge Ronald B. Leighton has granted preliminary approval to a nationwide settlement in a class action lawsuit filed by current and past owners of high-efficiency furnaces manufactured by Carrier Corporation equipped with polypropylene (plastic) laminated secondary heat exchangers. Approximately three million U.S. consumers purchased the furnaces covered under the settlement since January 1989. Carrier sold the furnaces under the Carrier, Bryant, Day & Night, and Payne brand-names. The settlement also resolves companion cases in Canada and will be presented to courts there for approval as well.

“After several years of hard-fought litigation in four different U.S. courts, the parties engaged in extensive negotiations that have resulted in an outstanding resolution of the case,” stated Kim D. Stephens, counsel for plaintiffs with the Seattle law firm of Tousley Brain Stephens PLLC. “The settlement offers a cash payment for the tens of thousands of consumers and others who paid to repair or replace their furnaces as a direct result of the alleged defect. Perhaps most importantly, the settlement also provides an enhanced 20-year warranty for consumers whose furnaces have not yet failed that will cover parts and labor for failures caused by the alleged defect.”

"We believe this is a terrific result for consumers," stated Jonathan D. Selbin, of Lieff, Cabraser, Heimann & Bernstein, LLP in New York, also counsel for plaintiffs, adding "We are proud of what we have accomplished with this settlement, and Carrier has really stepped up to the plate to take care of its customers."

The complaint, originally filed in June 2005, charges that starting in 1989, Carrier began manufacturing and selling high efficiency condensing furnaces manufactured with a secondary condensing heat exchanger (“CHX”) made of inferior materials. Plaintiffs allege that as a result, the CHXs, which Carrier warranted and consumers expected to last for 20 years, fail prematurely. Carrier has denied these allegations and has vigorously contested the litigation. The Court has not made any ruling on the merits of plaintiffs’ allegations.

For the purpose of effectuating the proposed settlement, the Court has granted conditional certification of the following settlement class:

All individuals and entities in the United States who currently own a Carrier 90% high efficiency condensing furnace manufactured between January 1, 1989 and the date of final approval of the Settlement and equipped with a polypropylene-laminated secondary heat exchanger, and former owners of such furnaces whose furnaces experienced CHX failure.

The Court will set a hearing to determine whether to grant final certification of the settlement class and final approval of the settlement agreement for April 22, 2008. Prior to the hearing notice will be provided to class members by first class U.S. mail and other means as to their rights under the settlement, including how to submit a claim or opt out or object to the settlement.

Reporters that wish to obtain a copy of the Court’s order and the settlement agreement may contact Brandan de Coteau of Lieff Cabraser at bdecoteau@lchb.com.

Source: PRWeb: Legal / Law

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