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<class action lawsuits> M3 Overrev



Let's all be clear on the real purpose of class action lawsuits, and the likely
outcome if this class were to prevail against BMW, whether by way of a
settlement or adjudication. From a social and legal "policy" standpoint, class
action lawsuits have a number of purposes, the legal being somewhat more
obscure to the public than the social. The officially stated social policy is
that, where the plaintiff class prevails, the prospective behavior of the
defendant (often a large corporate entity) will be modified such that it will
change its errant ways (and, perhaps, other bad actors will see the outcome of
the case and be similarly influenced). However, the principals of "legal
efficiency" and convenience to corporate defendants are just as important to
the system.

If there is no earlier settlement, the net damages recovered at the end of the
day (after years of appeals) are often applied prospectively, and/or doled out
thinly across the class members. The greatest likelihood in the event of an
outcome favorable to the class is that the class members will receive only
pennies on the dollar against their original repair expenses.

Let's face it: BMW is running a business. The light of history has shown that
the automotive industry will deal with all such issues, including those that
would present significant moral dilemmas to most of us (e.g., Lee Iaccoca's
decision at Ford re.- Pinto gas tank design), as economic problems. The company
has to evaluate these situations from a business perspective. Fortunately,
doing the right thing for the customer is now generally considered good
business.

Odds are, if there is a significant mechanical problem with the M3 shift
mechanism, whether or not admitted, BMW has already addressed it. IMHO, we
should save the class actions for behavior so egregious that the remedy must be
punitive. Those with the overrev problem who believe that they deserve redress
from BMW should take their cases to BMW, and be very persistent. We have seen
postings from members of this digest who attest that they have been compensated
by BMW for this problem.

Chris Blumenthal
'96 328is
'95 M3