Topic: 1970's American Honda class-action lawsuit notification/settlement???

[puppytrax]

Is there anyone else here who was part of the class-action lawsuit against American Honda in the early 70's??? I have moved/married twice since then and my paperwork has gotten...misplaced...   

BryanJ was kind enough to email me the technical bulletin sent to the dealers outlining the transmission problems in the CB500 and explaining the "fix kit" (which still seems to be available), but I'd like to get copies of the court notification sent to affected VINs and the settlement papers.

Thanks for your time! 

Edit: I know this isn't strictly a "Tech" question, but we have included Honda part numbers and I know we are going to get into the actual shifter problem, the fix, and all the parts and part numbers included in the "Modification Kit", so please bear with me...   

[hymodyne]

as a 500/4 owner, I'd like to look at that material and find out about the "fix kits"

hym

[puppytrax]

as a 500/4 owner, I'd like to look at that material and find out about the "fix kits"

Part of it is Honda Service Bulletin 500 # 4 "Modified Clutch and Shifting Mechanism" dated 7/26/71, for Honda CB500 prior to engine number CB500E-1018728

The repair kit is part # 06241-323-000 CLUTCH KIT $155.18

(BTW, the lawsuit was *not* about the shift mechanism. It was about the Manufacturers Statement of Origin certificates supplied to the dealers).

[cb350twin]

Back in 73 When my Dad bought his 350 twin there was some lawsuit for dealers selling earlier year models as later year model he and a bunch of other people got a check for like 80 bucks i believe

[puppytrax]

Back in 73 When my Dad bought his 350 twin there was some lawsuit for dealers selling earlier year models as later year model he and a bunch of other people got a check for like 80 bucks i believe

Yes, that's the one. Do you know if he kept the paperwork??? I'd like to have a copy of anything, if it is not too much trouble.

Here's my story (copied from another Forum I post on) -

In 1971 I was stationed on Okinawa for a year. I had owned motorcycles back in CONUS, so I decided to see if there were any used Honda CL72/77's for sale. I went to a Honda dealership in Koza (or was it Naha?) and saw the just-introduced CB500 Four. I loved the looks of it, and decided to wait until I got home and buy a new CB500 instead of shipping a used CL77 home (bad decision, in hindsight).

In the Spring of 1972, I visited my local Honda motorcycle dealer in Niagara Falls, NY; Honda Village. A salesman called "Whitey" sold me a brand-new showroom-fresh Honda Candy Garnet Brown CB500 Four right off the showroom floor. The cost was ~$1600.00+. "Whitey" handled the licensing and registration; my sister-in-law to-be handled the insurance; and I had my nice shiny new 500 Four.

After a week or two of riding, I had an un-nerving experience - the gearbox locked up solid during a 1-2 gearshift. The bike stalled and skidded to a halt, almost pitching me off. I was able to rock it back and forth and eventually the gearbox sorted itself out and I restarted and resumed riding.

This happened again about a week after, same scenerio, except now I was aware of it and pulled in the clutch to keep the engine running. Still had to crank the shifter up and down to free the gears, but it came around and I resumed riding again.

After the 2nd jam, a friend at a Triumph dealership told me about a report in Cycle News (I think that was the mag/paper) that Honda had problems with the CB500 Four gearshift mechanism and had directed dealers to replace the affected parts under warranty. I took the bike back to "Whitey", explained the problem, and requested the gearbox be examined and the parts replaced. "Whitey" told me that "my 72 already had the uprated parts" and that my problem was not covered under warranty. I was quite annoyed, to say the least.

Shortly thereafter, I experienced a 3rd lockup of the gearbox, this time in a 2-3 shift, and traveling much faster. I was still able to declutch and guide the bike to the shoulder, and eventually unjam it. But I no longer trusted the bike, and being a student, I did not have the money to get it examined and fixed without warranty support.

I sold the bike soon after that, with less than 500 miles on it, and bought a Triumph.

Sometime in 1973, I received a notification in the mail from an officer of the court notifying me that my VIN had been identified as being in the range covered by a class-action lawsuit against America Honda Motor Co for issuing incorrect Manufacturers Statement of Origin certificates. The notification explained that American Honda had requested the VINs of unsold 1971 motorcycles from their dealers and supplied those dealers with new Manufacturers Origin paperwork stating that the cycles were 1972 models. The court directed me to the lawfirm handling the class-action lawsuit and I joined the suit.

After a year or so, American Honda settled the lawsuit out of court, and I received some pithy amount ($60, if I recall correctly - something about "the difference in resale value between 71 and 72 models"), and that was the end of my involvement.

"Honda Village" went out of business or moved sometime later in the 70's; and I heard that "Whitey" died a few years later.

The whole business of a Honda dealer not wanting to repair a motorcycle under warranty that he knew was affected by the problem really turned me against Honda. (The dealer apparently believed that if he repaired the machine, it could be construed as an admission of guilt in the Origin Certificate swap). This motorcycle has remained the only Honda product I have purchased until 2006, when I bought a non-running 1973 CB500 and two basket case CB550's for casual hobby work. I've always felt that I had unfinished business with the Honda CB500.

[puppytrax]

as a 500/4 owner, I'd like to look at that material and find out about the "fix kits"

hym

[steamnjn23]

did this thread die?
interesting ...

[wdhewson]

Interesting. I agree.  Having worked for a large international business, I do hae experience with their "ethics".

[daniel9441]

Hey, sorry to resurrect a dead thread. When I was tearing down my 71 500, I realized that the bike had the early style shift drum and clutch plates. Is it worth doing the TSB work? Tranny seemed fine pre-teardown.

Sent from my XT1585 using Tapatalk

[carnivorous chicken]

Moral of the story? Never trust whitey.

Back in 73 When my Dad bought his 350 twin there was some lawsuit for dealers selling earlier year models as later year model he and a bunch of other people got a check for like 80 bucks i believe

Yes, that's the one. Do you know if he kept the paperwork??? I'd like to have a copy of anything, if it is not too much trouble.

Here's my story (copied from another Forum I post on) -

In 1971 I was stationed on Okinawa for a year. I had owned motorcycles back in CONUS, so I decided to see if there were any used Honda CL72/77's for sale. I went to a Honda dealership in Koza (or was it Naha?) and saw the just-introduced CB500 Four. I loved the looks of it, and decided to wait until I got home and buy a new CB500 instead of shipping a used CL77 home (bad decision, in hindsight).

In the Spring of 1972, I visited my local Honda motorcycle dealer in Niagara Falls, NY; Honda Village. A salesman called "Whitey" sold me a brand-new showroom-fresh Honda Candy Garnet Brown CB500 Four right off the showroom floor. The cost was ~$1600.00+. "Whitey" handled the licensing and registration; my sister-in-law to-be handled the insurance; and I had my nice shiny new 500 Four.

After a week or two of riding, I had an un-nerving experience - the gearbox locked up solid during a 1-2 gearshift. The bike stalled and skidded to a halt, almost pitching me off. I was able to rock it back and forth and eventually the gearbox sorted itself out and I restarted and resumed riding.

This happened again about a week after, same scenerio, except now I was aware of it and pulled in the clutch to keep the engine running. Still had to crank the shifter up and down to free the gears, but it came around and I resumed riding again.

After the 2nd jam, a friend at a Triumph dealership told me about a report in Cycle News (I think that was the mag/paper) that Honda had problems with the CB500 Four gearshift mechanism and had directed dealers to replace the affected parts under warranty. I took the bike back to "Whitey", explained the problem, and requested the gearbox be examined and the parts replaced. "Whitey" told me that "my 72 already had the uprated parts" and that my problem was not covered under warranty. I was quite annoyed, to say the least.

Shortly thereafter, I experienced a 3rd lockup of the gearbox, this time in a 2-3 shift, and traveling much faster. I was still able to declutch and guide the bike to the shoulder, and eventually unjam it. But I no longer trusted the bike, and being a student, I did not have the money to get it examined and fixed without warranty support.

I sold the bike soon after that, with less than 500 miles on it, and bought a Triumph.

Sometime in 1973, I received a notification in the mail from an officer of the court notifying me that my VIN had been identified as being in the range covered by a class-action lawsuit against America Honda Motor Co for issuing incorrect Manufacturers Statement of Origin certificates. The notification explained that American Honda had requested the VINs of unsold 1971 motorcycles from their dealers and supplied those dealers with new Manufacturers Origin paperwork stating that the cycles were 1972 models. The court directed me to the lawfirm handling the class-action lawsuit and I joined the suit.

After a year or so, American Honda settled the lawsuit out of court, and I received some pithy amount ($60, if I recall correctly - something about "the difference in resale value between 71 and 72 models"), and that was the end of my involvement.

"Honda Village" went out of business or moved sometime later in the 70's; and I heard that "Whitey" died a few years later.

The whole business of a Honda dealer not wanting to repair a motorcycle under warranty that he knew was affected by the problem really turned me against Honda. (The dealer apparently believed that if he repaired the machine, it could be construed as an admission of guilt in the Origin Certificate swap). This motorcycle has remained the only Honda product I have purchased until 2006, when I bought a non-running 1973 CB500 and two basket case CB550's for casual hobby work. I've always felt that I had unfinished business with the Honda CB500.

[AshimotoK0]

I bought a 4/71 500K0 last year (VIN < 1000), with the early 'squared-off' top crankcase ( as pictured in the Service Manual). It was a US import and  not used for many, many years. I completely stripped down the engine, which had never been modified, and the only thing I could find untoward was the needle roller bearing on one of the transmission shafts had a broken needle retainer  cage, which I have never seen on any of the numerous  CB350/250K twins I have owned, which essentially use the same bearing. If the bike had been used for much longer I am sure that bearing would have failed. I noticed on the later CB550 that the bearing in that location in the transmission  was changed to  a different type, fitted  with its own little 'trochoidal' oil pump attached to it. So I would inspect that 500 bearing very carefully for damage on any early 500's. I think it was the one on the countershaft.

[Don R]

 I was in the model year lawsuit for my 1973 cb500. My brother worked at the Honda shop so he asked if it was the latest model,  the shop owner assured him it was the latest model (73) and not last years holdover. However when I laid it down it needed K2 and not K3 parts. Later the class action suit letter came I filled it out. If I remember right I got $37.
 I think it was settled in 75 because when Honda lost they started making 76's right away. That's why there aren't as many 75's as 76's.