Churchill Village, L.L.C. v. General Electric

We must decide various challenges to a class-action settlement of these suits against the manufacturer of consumer dishwashers.

I

A

Between 1983 and 1989, General Electric (“GE”) manufactured and sold approximately three million GE- and Hotpoint-brand dishwashers equipped with a sliding “energy saver” switch. Although some were sold to individual consumers, the dishwashers were considered “low end” products and were primarily marketed to contractors, builders, and owners of commercial or rental properties. The switch, which allows a user to select either a heated drying cycle or drip drying, deteriorates over time and may melt or ignite.

Reports of fires caused by the allegedly defective switch eventually prompted an investigation by the Consumer Product Safety Commission (“CPSC”). Although the investigation found that no consumers had been physically injured, it determined that approximately 50 fires could be attributed to the switch, three of which damaged property other than the dishwasher itself. Under the terms of a formal settlement agreement between GE and the CPSC, GE announced a “recall” of the dishwashers in October 1999. GE advised consumers to stop using…