— A Honda Canada oil dilution settlement includes current and former Canadian owners and lessees of 2016-2018 Honda Civic and 2017-2018 Honda CR-V vehicles equipped with 1.5-liter turbocharged engines.
The Honda Canada oil dilution class action lawsuit alleges Civic and CR-V vehicles are prone to engine defects that cause fuel to dilute the engine oil.
Although the automaker decided to settle the lawsuit because of the ongoing cost of litigation, Honda "expressly denies the allegations in the Litigation."
Honda Canada Oil Dilution Settlement Terms
According to the settlement agreement, Honda will extend the factory warranty for issues related only to oil dilution problems. The warranty will be extended to the date that ends six years after the original sale or lease date of the Civic or CR-V.
The warranty extension is subject to the same terms and conditions as the original written warranty, but there are no mileage limitations with the extended warranty.
Another so-called "benefit" of the oil dilution settlement is a product update that Honda Canada was already providing to customers prior to when the class action lawsuit was filed. Honda Canada will continue to provide the free product update service that includes replacing the oil to remove excess fuel or moisture.
Honda Civic and CR-V customers may also be eligible for certain reimbursements if specific conditions are met.
Towing Expenses Related to Oil Dilution
An owner or lessee who paid to tow the vehicle due to oil dilution problems may submit a claim, but only under the following conditions.
The Civic or CR-V was towed by a licensed towing company before November 16, 2020, and the tow was caused by oil dilution problems which caused these conditions: An illuminated malfunction warning light; the vehicle entered limp mode or the engine failed.
In addition, the vehicle must show a diagnostic trouble code for engine misfire or fuel-mixture-rich code related to the oil dilution condition. An owner or lessee must also provide proof of the cost of towing.
Oil Change Expenses Related to Oil Dilution
It's also possible to be reimbursed for expenses related to oil changes before November 16, 2020, but only if the oil change was related to oil dilution problems. A Civic or CR-V customer may submit a reimbursement claim, but under these conditions only.
"The customer must have 'complained about Oil Dilution Condition to Honda Canada or an authorized Honda dealer at any time before the oil change; The Settlement Class Member’s Oil Dilution Condition complaint(s) is/are verified by adequate Honda Canada (or authorized Honda dealer) documentation; The Settlement Class Member provides proof that he or she changed the oil on or before 8,000 kilometers from the prior oil change because of Oil Dilution Condition issues; and Proof of Expenses is provided.'"
Diagnostic Expenses Related to Oil Dilution
The oil dilution settlement also includes reimbursement for diagnostic expenses related to oil dilution problems as long as these conditions are met.
A Honda Civic or CR-V customer who paid out-of-pocket for diagnostic costs related to oil dilution problems may submit a claim for expenses up to CA$325 if the diagnostics were completed before November 16, 2020.
The customer must have also made a complaint verified by "adequate Honda (or authorized Honda dealer) documentation; and Proof of Expenses is provided."
A customer isn't eligible for reimbursement if they already received compensation from Honda or an insurer.
None of the oil dilution settlement is official until a final hearing to approve the settlement in Skye v. Honda North America, Inc. et al., is held by the Ontario Superior Court of Justice on March 8, 2021.