Hybrid Honda owner loses appeal of small-claims court victory: Update

Heather Peters, the attorney who sued Honda in California small-claims court over what she called the disappointing mileage in her 2006 Honda Civic Hybrid, had her $9,687 award thrown out today by a Los Angeles County judge, who found that most owners get close to the fuel economy the U.S. Environmental Protection Agency estimates on the window sticker. Peters says she's disappointed, but that Honda lost the public relations battle even if it won the case.

Peters was among thousands of other Civic Hybrid owners had complained following a 2010 software upgrade to their cars by Honda that many said dramatically lowered their mileage. When Honda and the owners reached a class-action settlement that gives owners between $100 and $200, Peters opted out and brought her case to small-claims court, suggesting a new course of attack for people who believe they've been wronged by large corporations.

Peters move encouraged some 1,700 other owners to try the same route, and her win in February emboldened critics of the class-action settlement. But Honda appealed the ruling, and argued in state court that Peters' driving style, not Honda's software, was at fault. Peters presented evidence that after the software upgrade, her car never achieved more than 30 mpg, compared with the 50 mpg that Honda rated the car as capable of getting. A revamp of federal fuel economy rules later lowered the Civic Hybrid's official rating to 42 mpg.