Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, April 18, 1995                   TAG: 9504180147
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: Associated Press
DATELINE: PHILADELPHIA                                LENGTH: Medium

COURT REJECTS SETTLEMENT IN GAS TANK CASE

The 3rd U.S. Circuit Court of Appeals also said the coupon would be worthless to rental companies and ``less wealthy'' truck owners unable to purchase new GM trucks.

The case involved the ``sidesaddle'' fuel tanks GM put on trucks from 1973 to 1987. Last fall, Transportation Secretary Federico Pena said the trucks were prone to catch fire in a crash, and he blamed the design for 150 deaths.

In December, GM averted a recall by reaching an agreement with the government to spend about $51 million on safety and research programs. Some industry analysts estimated a recall would have cost GM $1 billion.

The plaintiffs in the Philadelphia settlement argued that the truck design and lawsuits over fiery accidents had reduced the value of their vehicles. The settlement combined 36 class-action lawsuits filed in all states but Texas, where a judge approved a separate settlement affecting 650,000 truck owners. That settlement is being appealed.

In rejecting the settlement, the 3rd Circuit said that, because of a failure to take all factors into consideration, the federal judge who approved the settlement overestimated its cost to GM, which was put at $1.9 billion to $2.8 billion at the time.

The judges agreed with opponents who branded the 1993 settlement merely a ``sophisticated marketing program.''

When the settlement was reached, GM estimated 5 million to 6 million trucks remained on the road.