Cooper Tire Settles Lawsuit Over Damaged Tires
By Michelle Logsdon - October 31, 2001Cooper Tire & Rubber Co. is avoiding the serious problems experienced by Bridgestone/Firestone Inc. regarding inefficiencies in its tires that could result in accidents and deaths. Cooper agreed Oct. 29 to settle 32 class-action lawsuits by offering a five-year extended warranty for free replacement tires damaged by manufacturing-related tread separation.
You might remember last summer when Bridgestone/Firestone recalled 6.5 million tires because they were prone to peeling and separating. The tires were linked to dozens of fatal accidents involving Ford Explorer sport-utility vehicles (SUVs).
The Cooper lawsuits involved nearly 50 plaintiffs, none of who filed personal injury claims.
The AP reports that Cooper spokeswoman Patricia Brown said, "We are delighted to reach this agreement for an unprecedented warranty which we hope will serve as a benchmark for future settlement agreements in consumer product cases."
Allen Kanner, the lead attorney in the class-action lawsuit, supported the offer.
The warranty covers all steel-belted radial tires produced since 1985. Brown expects very few claims under the extended warranty. “All of our tires are now under warranty against separation,” said Brown. “It provides the consumer with a free replacement tire instead of a [pro-rated or] partial replacement. It enhances the value of the tires.”
The offer does not cover separations caused by punctures or other road hazards. Brown says dealers will be able to identify manufacturing-related separations. Cooper tires are sold at stores such as Sears and Pep Boys under their own name and private store brand names.
Unlike Bridgestone/Firestone, Cooper’s agreement will not hold the company liable for any wrongdoing.
The agreement also requires Cooper to upgrade its final tire inspections and provides for an educational program on tire safety. Cooper will take a $55 million pretax charge to cover the cost of the extended warranty and other programs.
Superior Court Judge Marina Corodemus in New Brunswick, New Jersey should decide whether to approve the settlement early next year.
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