Email from Costco regarding lawsuit over buying warm gasoline

[Duer 157099]

I don't know what to make of this exactly. Any guesses as to what the settlement might actually be, and whether they keep records of how much gas each member purchased on days when it was above 60 degree? And should I opt out or just go with the class action? So many questions I never even considered before getting this email a few minutes ago.

Am I about to become a millionaire???

*****************************

TO: All persons who, between January 1, 2001 and April 22, 2009, purchased
gasoline from Costco at a temperature above 60 degrees Fahrenheit in any one of
the following States: Alabama, Arizona, California, Florida, Georgia, Indiana,
Kansas, Kentucky, Maryland, Missouri, Nevada, New Jersey, New Mexico, North
Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, and
Virginia.

YOU ARE HEREBY NOTIFIED that based on concerns regarding class representation,
the Court did not approve the settlement agreement previously entered into
between Costco and Plaintiffs on or about April 12, 2009 (the "Original
Settlement&quot in /In re Motor Fuel Temperature Sales Practices Litigation/, Case
No. 07-MD-1840 (United States District Court, District of Kansas). On or about
January 3, 2011, the parties entered into an amended settlement agreement (the
"Amended Settlement&quot based on suggestions made by the Court.

The Amended Settlement provides for a Settlement Class consisting of 21
subclasses, one for each State covered by the settlement. In other words, class
members who purchased gasoline from Costco in one or more of the identified
States now have a representative who purchased fuel from Costco in that State.
In addition, in the Amended Settlement, Costco agreed to file compliance reports
with the Court every 6 months and the parties agreed that any amount that the
Court awards Class Counsel for attorneys' fees and costs will be payable in
accordance with a payment schedule set by the Court. The Court has preliminarily
certified the 21 subclasses and preliminarily approved the proposed Amended
Settlement.

The complaints allege that Costco (and others) misled consumers by selling motor
fuel at temperatures above 60 degrees Fahrenheit without adjustment for the
fuel's temperature. Costco denies any wrongdoing. If the Amended Settlement is
approved, over the next five years, to the extent allowed by law, Costco will
convert its existing motor fuel pumps to automatic temperature correcting pumps
in Alabama, Arizona, California, Florida, Georgia, Kentucky, Nevada, New Mexico,
North Carolina, South Carolina, Tennessee, Texas, Utah, and Virginia. In the
remaining states (/i.e./, Indiana, Kansas, Maryland, Missouri, New Jersey,
Oregon, and Pennsylvania), Costco will convert its existing motor fuel pumps to
automatic temperature correcting pumps, to the extent allowed by law, if Costco
begins consistently to purchase motor fuel on a temperature-adjusted basis for
sale in that State. Except for the class representatives, class members will not
receive any payment.

*If you are in the class defined above, your rights will be affected by this
settlement unless you opt out.* If you _DO NOT_ want to be bound by a class
judgment, you may exclude yourself from the Settlement Class and maintain the
right to pursue your own lawsuit against Costco. To exclude yourself, you must
submit a *Request for Exclusion* that includes your full name, mailing address,
e-mail address (if opting out electronically), your signature (or an electronic
signature consisting of "/s" plus your typed name), and the following statement:
"I request that I be excluded from the Amended Settlement in /In re Motor Fuel
Temperature Sales Practices Litigation/, MDL Docket No. 1840." You must submit
your *Request for Exclusion* to the Settlement Administrator *no later than
February 17, 2012*, either via U.S. mail to the Settlement Administrator at P.O.
Box 12985, Birmingham, AL 35202-2985, or via the online "links" available at
http://www.Costco.com/fuelsettlement.pdf
<http://click.online.costco.com/t?r=16&c=51398&l=10890&ctl=203DAB 4045DF54DAAAF2275A55797042D917813EB3C1C71416F6E&>.

*REQUESTS FOR EXCLUSION THAT ARE NOT POSTMARKED ON OR BEFORE FEBRUARY 17, 2012,
OR SUBMITTED ELECTRONICALLY ON OR BEFORE THAT DATE WILL NOT BE HONORED.*

If you _OPTED OUT_ of the Original Settlement (/i.e./, you asked to be excluded
from the previous settlement), you must submit another Request for Exclusion to
be excluded from the Amended Settlement. In other words, even if you asked to be
excluded from the Original Settlement, you will be _INCLUDED_ in the Settlement
Class unless you request to be excluded from the Amended Settlement, as outlined
above.

If you do nothing, you will be _INCLUDED_ in the Settlement Class and will be
bound by the Amended Settlement and class judgment. You will not be able to
pursue any other lawsuit against Costco concerning or relating to the claims
alleged in these lawsuits.

If you remain in the Settlement Class, you may file with the Court objections to
the Amended Settlement *by February 17, 2012*. For information on how to object
to the Amended Settlement, see the websites listed below. You may not object to
the Amended Settlement if you exclude yourself from the Settlement Class.

The Court will hold a hearing in this case on March 22, 2012 at 9:30 a.m., to
consider whether to approve the Amended Settlement. You may ask to appear at the
hearing, either in person or through an attorney of your choosing.

For further information regarding the settlement, a copy of the Amended
Settlement, briefing regarding Class Counsel's fee request, and your rights to
participate or object, visit http://www.Costco.com/fuelsettlement.pdf
<http://click.online.costco.com/t?r=16&c=51398&l=10890&ctl=203DAB 4045DF54DAAAF2275A55797042D917813EB3C1C71416F6E&>
or write to Settlement Administrator, P.O. Box 12985, Birmingham, AL 35202-2985.
Additional information regarding the class action lawsuits is available at
http://www.ksd.uscourts.gov/motor-fuel-temperature-sales-practices-litigation/
<http://click.online.costco.com/t?r=16&c=51398&l=10890&ctl=203DAC 4045DF54DAAAF2275A55797042D917813EB3C1C71416F6E&>.

[frazzled]

1. You'll probably get a check for $2.97 when it's all over

That has been my experience with these things.

I don't even know what happened here with the gasoline. But I assume you car is still running?

[Duer 157099]

3. Yes, car is fine, it wasn't bad gasoline

I think the issue was that at higher temps, the gas vaporizes and you actually get less gas than what the meter says, or something like that.

I've heard for a long time that one should not purchase gas (when possible) on hot days for exactly this reason.

[Control-Z]

7. I'd never heard that before:

"I've heard for a long time that one should not purchase gas (when possible) on hot days for exactly this reason."

It might be a problem for some of us in warmer locations (So Cal, in my case).

[Duer 157099]

13. I was sort of wrong

It's that the gas expands, not vaporizes. And expanded gas means you actually get less gas than what you are paying for.

[barbtries]

2. you'll probably get a couple bucks.

i've been in a couple class settlements and the most i got was less than $100

[Sen. Walter Sobchak]

4. They aren't always a waste of time

My father just received $2000 in a shareholder lawsuit against a bunch of crooked directors.

[pennylane100]

14. I agree, I was very happy with a class action suit against a former employer.

They were not reimbursing their sales force for car allowance expenses. I got a check in the mail for almost $5,000 and another longtime employee got one for over $9,000. I did not think that we would win the case and then I thought that the most I would get would be a few hundred dollars. Another reason to believe in karma.

[monmouth]

5. I doubt you'll see a penny. The lawyers get paid first...n/t

[TexasProgresive]

6. It appears that this settlement does not involve money to the classes

1) gasoline like everything else expands in volume as it warms. So wamer gasoline gives less energy per gallon. A 30% change in temperature equals about 1.5 to 2%.
2) I don't know why COSTCO was singled out since no vendors compensate for temperature.
3) COSTCO is installing pumps that automatically compensate for temperature in the states where allowed. This is problematic as the state inspectors check accuracy of the pumps by volume.

This is a case of finding fault were non existed. COSTCO even posted signs saying that their pumps measured by volume and could not guarantee the amount of energy in that gallon.

If I'm wrong about no money settlement-someone show me- I did read the email in haste.

[KT2000]

8. Agree

someone really has it out for Costco.I recall being notified of a class action suit about their membership fees. Costco said they covered a year and if you renewed late, the year started at your renewal date and not the date you paid. I sided with Costco on that one since that is the way most memberships work.
Someone is nitpicking Costco - maybe Walmart? or bored lawyers?

[cyglet]

11. Probably

someone who hates that they make money AND treat their employees well.

No one compensates for temperature changes in gasoline...

[Fair Witness]

9. The obvious technical objection to this is one that nobody seems to notice: the temperature of

underground gasoline storage tanks rarely varies more than 1 or 2 degrees Celsius. Most of this whole farrago is just people looking for something to bitch about.

[Xicano]

10. What TexasProgresive says.

Gasoline expands in volume when as its temp goes up and this is suppose to be compensated for at the pump.

[Turbineguy]

12. In large fuel purchases the volume is corrected for weight

since energy content is based on weight and horsepower formulas are based on fuel energy content by weight.

At the wholesale level prices are adjusted for temperature because the gasoline may be at varying temperatures from truckload to truckload.

When you buy gasoline at a higher temperature you are indeed getting less energy per pound of weight, however since the volume has expanded, your tank will be full earlier cutting off your fuel purchase at a lower cost than it would when the gasoline is cold. By virtue of the fact that the pump is measuring volume, the weight correction is meaningless.

The oil industry uses a standard correction based on 60 degrees F. That means is that when the temperature is below 60 the correction to weight is greater than 1 and above 60 is less than 1. Due to temperature differences it follows that you would get better fuel economy (if measured in miles per gallon) when it is cold because the energy content per gallon is higher than when the gasoline is warm. In reality your energy consumption remains the same. In the end you are buying energy because that is what your engine consumes. Gasoline has very narrow specification ranges so the energy content per pound does not vary all that much but can still vary by plus or minus 4 percent due to specific volume differences. Lower octane gasoline has a higher heat content than higher octane gas, but this is compensated for by the compression ratio in the engine (higher = more thermally efficient). Thus: never buy gasoline of a higher octane rating than called for by the car maker!

Given that in automobiles the greatest energy loss is the person operating the gas pedal, the question is really moot.

On the other hand, if my brother in law was a lawyer and I wanted to throw some work his way, I'd sue.

[rhett o rick]

15. I get one or two of these a year. They are the new scam in my book.

The company is caught cheating the consumer and a class lawsuit is filed. The company is glad to settle for a fraction of their damage and the lawyers get millions. The consumers get such a small amount, many if not most dont even bother to cash in. Once I got a $20 coupon for the next monitor I bought of a certain brand. The company makes out because the filer isnt looking out for the consumer.

[capn7]

16. Yes, you'll be rich! We're all be rich!

Duer, you won't see a penny. Read the last sentence of the fourth paragraph: "Except for the class representatives, class members will not receive any payment." Only the representatives - one or two per state affected - will receive anything. Members like you and me get nothing. To answer your question, I believe Costco *could* determine precisely what you purchased on "hot days" since their pumps require your membership card every time. From that purchase history, they could determine, within reason, what each person would truly be entitled to. But, the settlement (like many class-action suits) essentially excludes you and me and becomes all about the attorneys, so that level of detail won't be necessary in this case. We're just pawns here.

Personally, I'm opting out. Not because I intend to do anything else in the matter, but because I think this is a ridiculous lawsuit in the first place and I don't want my name attached. Yes, I do believe that fuel stations everywhere should be installing compensating pumps. But there is a more appropriate way to make that happen than getting lawsuit happy. Sticking it to one of the first companies who will listen to and respond to the complaints is just plain stupid. Rarely anybody uses compensating pumps, and for most of our lives we've been screwed out of a few drops of gas no matter where we've purchased. How is that Costco's fault? Should the first company that agrees to correct that across all of their stations be penalized? I suspect that the consumer advocates are trying to get a big settlement to "make an example" out of Costco, to scare other fuel providers into following suit and replacing their pumps.

If there has to be a cash settlement, then I'd much rather the settlement gave each member a voucher for free gas - 2% of all "hot fuel" they've purchased - and tell the lawyers to fly a kite, but that can't happen, unfortunately. Not that 2% would probably even equate to a full tank or anything, but with fuel prices today, I bet most people would rather receive those few dollars than some attorneys or "representatives" getting rich.

Anyways, I suggest opting out to make a micro-statement. Regardless of what you do, you're getting nothing.

[PSFXNF]

17. LAWYERS are ONLY ones getting PAID

Its says it right in the letter

"Except for the class representatives, class members will not
receive any payment. "

Read the letter again.. the only Class Representatives are the LAWYERS !!!!!

We had better opt out PDQ.. if we don't want the Lawyers to get paid.. and they are the only ones getting paid.. BTW my sister is an Attorney she pointed out that clause for me...

This is a cleverly crafted letter to provide notice to the members.. Costco is NOT sending you any $$$...

[PSFXNF]

18. Capn7 & didn't see your post. till after I posted

Read both THE cAPN7 POST and my post.

GLTA

[PSFXNF]

20. This was copied from an earlier post on this subject:

The Amended Settlement provides the following Class Representatives for each subclass:

Alabama Purchasers Subclass: Annie Smith

Arizona Purchasers Subclass: Christopher Payne

California Purchasers Subclass: Phyllis Lerner and Herb Glazer

Florida Purchasers Subclass: Mara Redstone

Georgia Purchasers Subclass: Brent Crawford

Indiana Purchasers Subclass: Victor Ruybalid

Kansas Purchasers Subclass: Zach Wilson

Kentucky Purchasers Subclass: Lisa McBride

Maryland Purchasers Subclass: Raphael Sagalyn

Missouri Purchasers Subclass: Brent Donaldson

Nevada Purchasers Subclass: Gary Kohut

New Jersey Purchasers Subclass: Richard Gaulauski

New Mexico Purchasers Subclass: Charles Byram

North Carolina Purchasers Subclass: Jean Neese

Oregon Purchasers Subclass: Shonna Butler

Pennsylvania Purchasers Subclass: Gerald Panto

South Carolina Purchasers Subclass: Joann Korleski

Tennessee Purchasers Subclass: Tamara Miller

Texas Purchasers Subclass: Priscilla Craft

Utah Purchasers Subclass: Jeff Jenkins

Virginia Purchasers Subclass: James Graham