KANSAS CITY, Kansas – The plaintiffs in a class-action lawsuit over “hot fuel” have filed a motion requesting final approval of the proposed $24.5 million settlement.
U.S. District Court Judge Kathryn H. Vratil began reviewing the proposed settlements this week. More than two dozen fuel retailers denied any wrongdoing but had settled on the case, which alleged that they were shortchanging customers who got less fuel than they paid for because of temperature changes. Plaintiffs alleged that because the volume of gasoline rises along with its temperature, consumers were paying a full gallon price for less than a gallon of fuel.
These retailers’ pumps did not have automatic-temperature-compensation (ATC) devices that would adjust the price based on the fuel volume.
In the settlement, six of the defendants—including major oils—agreed to establish a $22.925 million fund to reimburse retailers for installing ATC equipment.
Four of the defendants, including Casey’s General Stores and Valero, agreed to install ATC devices on their fuel dispensers at their branded sites over time. The other 18 defendants—including CITGO and Thorntons—agreed to pay into a $1.577 million fund that would help state weights and measures agencies ensure ATC upgrades were done lawfully.
Plaintiffs filed a motion this week arguing that the settlement is effective and ready for approval, according to class-action news source Top Class Actions. In the motion, they noted the retailers that have chosen to install ATC devices, which also include Sam’s Club and Dansk Investment Group.
“That relief is substantive, tangible and designed to benefit retail consumers by providing a fairer method of distribution of motor fuel,” the motion states. “Temperature compensation is already systemic in the petroleum industry but ends at the station level; retail consumers are neither sold a gallon that accounts for the effects of temperature, nor told they are not receiving a uniform gallon.”
“Through this litigation, plaintiffs are making headway on changing the status quo,” it concludes.
The plaintiffs also note in the motion that out of 28 class-action settlements, four of the defendants are installing ATC equipment and 24 are paying into the two funds. More than 100 companies opted out of the settlement and there were three objections.
In March, a group of large chains including 7-Eleven, QuikTrip, Circle K, Kum & Go, Sheetz and Wawa filed an objection to the proposed settlement, arguing that it created a “de facto slush fund” that would financially reward state governments for changing their laws to meet the plaintiffs’ wishes. Another objection was filed by Theodore Frank, founder of the Center for Class Action Fairness, representing consumers.
Despite this, plaintiffs argue that the settlements are fair.
“Not a single federal or state official, which have been specifically informed about the details of the settlements, has voiced concerns or objections,” the motion states. “That response speaks volumes about the fairness of the settlements.”
The Hot Oil Class Action Lawsuit MDL is In re: Motor Fuel Temperature Sales Practices Litigation, Case No. 2:07-md-01840, in the U.S. District Court for the District of Kansas.
Click here to view the full Top Class Actions report. And click here to view the settlement website.
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