Fiat Chrysler Seeks Pause in EV Fire Suit as Arbitration Battle Takes Center Stage
America ı By Rihem Akkouche
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Fiat Chrysler is urging a Michigan federal court to hit the brakes on a proposed class action accusing its plug-in hybrid Jeep Wrangler 4xe and Grand Cherokee 4xe models of harboring batteries prone to spontaneous fires, arguing the case should not move forward until the judge decides whether most drivers must pursue their claims in arbitration.
In a Monday filing, FCA US LLC told the court that 25 of the 28 named plaintiffs either signed contracts or accepted terms that prevent them from suing in federal court. With that many plaintiffs potentially bound by arbitration clauses, FCA said, plunging ahead with motions and discovery “makes no sense” before the threshold issue is resolved.
The company asked the court to impose a stay until its renewed motion to compel arbitration is decided.
Drivers Warn of Delays as Vehicles ‘Continue to Catch Fire’
Last month, drivers pushed back, warning that a stay could stall the case for “months or even years,” giving FCA room to dodge liability while affected vehicles age — and allegedly continue catching fire. FCA countered that it seeks only a “brief” pause to settle the arbitration question.
The March 2024 lawsuit accuses the automaker of knowingly selling defectively designed plug-in hybrid EVs equipped with a dangerous battery system. A sweeping 413-page amended complaint, filed in November, cites multiple incidents in which the vehicles ignited while charging and with the ignition either on or off. The affected models span 2020 through 2024.
According to the plaintiffs, Jeep marketed the vehicles as safe while failing to disclose a fire risk they say the company already knew existed.
Arbitration Fight Intensifies After Initial Court Rejection
In June, U.S. District Judge Brandy McMillion rejected FCA’s first attempt to send the case into arbitration, finding the company had not sufficiently shown that enforceable contracts existed.
But in November, FCA returned with a renewed motion, arguing that 20 lead plaintiffs signed lease or purchase agreements containing not only arbitration clauses but delegation clauses — provisions handing arbitrators the authority to decide whether a dispute is arbitrable.
FCA further contends that additional plaintiffs accepted arbitration terms through a written warranty booklet included with the vehicles. At least 16 drivers, the company says, requested free repairs under that warranty, creating a “bilateral contract” that included an arbitration requirement.
Both FCA and counsel for the drivers declined to comment Tuesday.
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