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A resolution authorizing the Metropolitan Department of Law to compromise and settle the Metropolitan Government of Nashville and Davidson County’s public nuisance, negligence, and gross negligence claims against Hyundai Motor Company, Hyundai Motor America, Kia Corporation; and Kia America, Inc. in the amount of $747,819.00 and that said amount be paid into the General Fund.
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WHEREAS, the Metropolitan Government of Nashville and Davidson County has asserted numerous claims against Defendants Hyundai Motor Company, Hyundai Motor America, Kia Corporation, and Kia America, Inc. (“Defendants”), arising out of Defendants’ failure to install industry-standard engine immobilizers or other reasonable anti-theft technology on vehicles that they manufactured; and,
WHEREAS, this failure has resulted in a disproportionate number of thefts of Defendants’ vehicles in the Metro Nashville area, causing the Metropolitan Nashville Police Department to expend significant resources to retrieve stolen cars and investigate these theft and other related crimes; and,
WHEREAS, after investigation, the Metropolitan Department of Law believes that the settlement listed in Section 1 is fair and reasonable and in the best interest of the Metropolitan Government and recommends that any and all claims or causes of action brought or that could have been brought by the Metropolitan Government related to the events detailed above be compromised and settled for $747,819.00, and that this amount be paid into the General Fund.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1: The Metropolitan Department of Law is authorized to compromise and settle the Metropolitan Government’s public nuisance, negligence, and gross negligence claims for the sum of $747,819.00, with said amount to be paid into the General Fund.
Section 2: This resolution shall take effect from and after its adoption, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This resolution settles litigation with Hyundai Motor Company, Hyundai Motor America, Kia Corporation, and Kia America, Inc. (collectively the “Defendants”).
The Metropolitan Government (“Metro”), along with other cities across the county, filed suit in 2024 against the Defendants, asserting claims of public nuisance, negligence, and gross negligence for failure to install standard theft-prevention technology in vehicles manufactured by the Defendants. Due to this failure, the Metropolitan Nashville Police Department dealt with increased costs to investigate and retrieve stolen Kia and Hyundai vehicles.
Metro was represented by Keller Rohrback, due to the expertise required for a large class action case such as the one associated with this settlement. Metro Nashville’s portion of the settlement is $1,222,242.35. After attorneys’ fees, Metro will receive a payment of $747,819.
Fiscal Note: Metropolitan Government will receive a settlement in the amount of $747,819 from Hyundai Motor Company, Hyundai Motor America, Kia Corporation and Kia America, Inc. for failure to install industry-standard engine immobilizers or reasonable anti-theft technology on manufactured vehicles.