Honda taken to small-claims court over mpg ratings

TORRANCE, Calif. -- A woman took her claim that her 2006 Honda Civic hybrid doesn't achieve its advertised gas mileage before a judge Tuesday in a case that's attracting national attention.

The trial was held in small-claims court here — a couple of miles from Honda's U.S. headquarters.

The high profile of Heather Peters' case is a reflection of the fact that the case tests whether dissatisfied consumers can use small-claims court to short-circuit a class-action lawsuit. Peters, a former corporate attorney now employed as a housing policy analyst, is passing up a proposed class-action settlement that would give up to $200 to certain Civic hybrid owners over inflated gas mileage claims.

In small-claims court, Peters, 46, of Los Angeles is limited to damages of $10,000, even though she says she was defrauded for $122,112.

She alleged that Honda misrepresented the $25,400 car because it initially got 20% less than the 49 miles per gallon in the city and 51 mpg on the highway that were promoted on its window sticker and in promotional materials. She says the mileage worsened as the battery deteriorated — and a software update only exacerbated the problem. She sought compensation for her lost gas mileage, the premium she paid for a hybrid and diminished resale value.

Standing in front of her metallic gray Honda before a battery of cameras in the parking lot before the trial, Peters said Honda has refused to deal with her complaint. "They have not responded to me or the 200,000 people who have this car," she said.

A Honda representative, however, countered in court that Honda merely followed government rules regarding gas mileage and that the automaker clearly states that fuel economy will vary depending on how owners drive the car.

"We have no choice," said Neil Schmidt, a technical specialist for American Honda, who brought in a blown-up copy of the car's window sticker. "We have to put these numbers on the label." He noted the small type on the label, which gave a listing of 41 to 57 miles on average, saying, "This is more toward the real world." He said the software update was aimed at extending the life of the battery and should not have affected gas mileage.

The judge, Commissioner Douglas Carnahan, didn't immediately rule.