Honda Can't Seek Arbitration In Defect Suit, Judge Rules

Law360, New York (October 4, 2012, 3:02 PM EDT) -- A California federal judge on Wednesday refused to force arbitration in a dispute between a Honda Motor Co. Inc. unit and a car owner, keeping alive a putative class action over allegedly defective Accord models that quickly burn oil.

Honda had argued that the contract signed by plaintiff Vince Eagen and American Honda Finance Corp. allowed the car company to enforce the agreement's clause allowing either party to choose arbitration over jury trial to settle a dispute, but U.S. District Judge Susan Illston said that Honda...
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