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Azoulay v. FCA Canada inc.

Executive Summary: Key Legal and Evidentiary Issues

  • Alleged common latent design and/or manufacturing defects in high-voltage batteries of 2021–2025 Jeep Wrangler 4xe and 2022–2025 Jeep Grand Cherokee 4xe plug-in hybrid vehicles.
  • Whether FCA knew of the battery defects and failed to disclose material information to class members, and when it knew or should have known.
  • Contested fitness and durability standards — whether the subject vehicles performed in accordance with normal use standards given their price, contract terms, and conditions of use.
  • FCA's post-authorization conduct of offering $150 MasterCard gift cards to class members raised concerns about potential waiver or release of claims, necessitating court clarification.
  • Entitlement to remedies including vehicle recall and repair, contract annulment, reimbursement of purchase/lease price, compensatory, moral, and punitive/exemplary damages.
  • Privacy law implications arising from the court's order compelling FCA to disclose personal information of class members to the notice administrator, Concilia Services Inc.

 


 

Background and facts

This class action arises from alleged defects in the high-voltage batteries of plug-in hybrid electric vehicles (PHEVs) sold and leased in Quebec under the Jeep brand. The plaintiffs, Nathalie Azoulay and Carl Laredo, commenced the proceeding against FCA Canada Inc. and FCA US LLC (collectively, "FCA"), the manufacturer and distributor of the subject vehicles. The vehicles at the center of the dispute are the 2021–2025 Jeep Wrangler 4xe and the 2022–2025 Jeep Grand Cherokee 4xe — both plug-in hybrid electric vehicles marketed to consumers as combining combustion and electric battery technology.

The plaintiffs allege that these vehicles suffer from common latent design and/or manufacturing defects specifically related to their high-voltage battery systems. They further allege that FCA was aware, or ought to have been aware, of these defects and failed to adequately disclose them to consumers at the time of purchase or lease. FCA denies all liability and is actively contesting the class action.

Authorization of the class action

The Superior Court of Quebec authorized the class action by judgments dated September 5 and November 17, 2025. The certified class covers all persons in Quebec who own, owned, lease, leased, and/or used one or more of the subject vehicles, with the court reserving the right to determine additional subgroups as the proceeding develops. The authorization at this stage is purely procedural — it allows the action to proceed as a class action and does not constitute any finding of liability against FCA. The plaintiffs, as representative plaintiffs, were ascribed the status of class representatives to act on behalf of all class members.

The gift card issue

A notable development arose after the authorization judgments were issued. FCA sent emails to certain class members offering a $150 MasterCard gift card. Class counsel raised concern that class members might interpret the acceptance or use of these gift cards as a release of their claims against FCA, potentially undermining their participation in the class action. The court addressed this directly. FCA confirmed through its counsel that the acceptance, receipt, or use of the $150 gift cards did not constitute a release of any claims against FCA. The court took formal note of this confirmation and declared that all class members who received, accepted, and/or used the gift cards remain fully entitled to participate in the class action. This clarification was incorporated into the notices to be disseminated to all class members.

Key issues for trial

The principal questions of fact and law to be resolved at trial include whether the subject vehicles suffer from common latent design and/or manufacturing defects; whether FCA knew of the defects and failed to warn consumers; whether FCA's omissions were misleading or deceptive; whether the vehicles met the standard of fitness for their normal purposes and the standard of durability for normal use over a reasonable period given their price and contract terms; whether FCA defaulted in making available non-defective replacement parts within legal delays; and whether the sale or lease contracts should be annulled with full or partial reimbursement of amounts paid by class members.

Remedies sought

If the class action succeeds at trial, the plaintiffs seek a broad range of remedies on behalf of all class members. These include an order compelling FCA to conduct a proper recall and repair the subject vehicles free of charge. Failing adequate recall and repair, plaintiffs seek annulment of all relevant sale and lease contracts and full reimbursement of all amounts paid. The plaintiffs additionally seek compensatory damages covering repair costs, rental car fees, transportation, parking, snow removal, storage, fuel costs, loss of time, loss of use, and other disbursements. Moral damages are claimed for embarrassment, stress, fear, and anxiety. Punitive and/or exemplary damages are also sought. Attorney's fees and all notice costs are claimed against FCA as well.

The May 2026 judgment: notice approval and procedural orders

The judgment under review, rendered by Justice Pierre Nollet of the Superior Court of Quebec on May 14, 2026, deals exclusively with the approval of the notice plan and related procedural matters in preparation for the merits phase of the litigation. The court approved the bilingual (English and French) notices to class members, the opt-out form, and the notice dissemination plan prepared by Concilia Services Inc., the court-appointed notice administrator. Concilia was directed to initiate the notice plan on or before June 5, 2026. FCA was ordered to provide Concilia with the list of class members no later than May 25, 2026, and to disclose all personal and/or private information of class members held by FCA to facilitate notice dissemination. The court declared that this judgment itself constitutes the legal authority compelling such disclosure under applicable privacy legislation. Class members who wish to opt out of the class action must do so no later than July 6, 2026, by filing the prescribed opt-out form with the clerk of the Superior Court of Quebec in Montreal, with a copy to class counsel at Lex Group Inc.

Outcome and costs

As this decision is an interlocutory procedural judgment and not a final judgment on the merits, no successful party has been determined and no monetary damages, compensatory awards, or punitive damages have been granted at this stage. The only financial order issued is that FCA bear the costs associated with the execution of the notice plan payable to Concilia Services Inc., the exact quantum of which is not specified in the judgment but is referenced to an estimate prepared by Concilia dated November 27, 2025. The determination of liability and the quantum of any damages, if any, remain to be decided at trial.

Nathalie Azoulay
Law Firm / Organization
Lex Group Inc.
Lawyer(s)

David Assor

Carl Laredo
Law Firm / Organization
Lex Group Inc.
Lawyer(s)

David Assor

FCA Canada Inc.
Law Firm / Organization
Fasken Martineau DuMoulin LLP
FCA US LLC
Law Firm / Organization
Fasken Martineau DuMoulin LLP
Quebec Superior Court
500-06-001342-241
Class actions
Not specified/Unspecified
Other