IN THE SUPERIOR COURT OF FULTON COUNTY

STATE OF GEORGIA

AK EL OSO, LLC and

AK SANTAMARIA ENTERPRISES,
LLC, Individually and on Behalf of All
Others Similarly Situated,
Plaintiffs,
v.
YANMAR MARINE USA
CORPORATION and YANMAR
AMERICA CORPORATION f/k/a
YANMAR DIESEL AMERICA CORP.
Defendants.
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CIVIL ACTION NO.

FILE NO. 2005-CV-102150

NOTICE OF PENDENCY OF CLASS ACTION AND PROPOSED SETTLEMENT OF

CLAIMS AGAINST DEFENDANTS YANMAR MARINE USA CORPORATION AND
YANMAR AMERICA CORPORATION
CONCERNING YANMAR 6LP-S AND 6LPA-S SERIES ENGINES
TO:

ALL CURRENT OR FORMER OWNERS (DETERMINED AS OF MARCH 15, 2007)

OF YANMAR 6LP-S OR 6LPA-S SERIES ENGINES MANUFACTURED BY
YANMAR BETWEEN SEPTEMBER 1996 AND FEBRUARY 1, 2002,
SPECIFICALLY INCLUDING THOSE WHICH HAVE A) A MODEL DESIGNATION
OF 6LP-STE, 6LP-STZE, 6LPA-STE, 6LPA-STZE, 6LPA-STP or 6LPA-STZP AND B)
BEAR A SERIAL NUMBER IN THE RANGE OF 50101-53988 or M50001-51195.

A Settlement has been proposed that will provide extended warranty benefits to the above
persons for covered engine failures arising from improper exhaust valve performance.

Yanmar does not believe that the described engines have any defect, but Yanmar is
agreeing to this Settlement to stand behind its products and provide extended warranty coverage
for the benefit of its customers.

Your legal rights are affected whether you act or do not act. Read this Notice carefully.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

This is the only way to obtain the extended
SUBMIT A CLAIM by
September 15, 2007 for past repairs or warranty coverage benefits available under
within the EXTENDED WARRANTY this Settlement.
PERIOD for your Engine (whichever is
later).
EXCLUDE YOURSELF from the Class by
You will receive no extended warranty
June 15, 2007.
coverage benefits under this Settlement but
will preserve rights you may have to file
your own lawsuit against Yanmar.
OBJECT by June 15, 2007.
You can write to the Court about why you
do not like the Settlement but be bound by
the Settlement approved by the Court.
DO NOTHING
You will get no extended warranty coverage
benefits and will give up your rights.
SUMMARY HIGHLIGHTS OF THE SETTLEMENT
The proposed Settlement provides extended warranty coverage to Class Members for
engine failures involving the valve assemblies of the described Yanmar engines. In brief,
Yanmar will provide Extended Warranty Coverage for each Engine for 5,000 hours of engine
use or 8 years (96 months). For any Class Member with a Light Duty Commercial Warranty, the
Light Duty Commercial Extended Warranty Period shall be 4 years (48 months) or 1,250 hours
of Engine use.
The Extended Warranty Coverage is limited to providing coverage for any Engine which
suffers a Covered Engine Failure. Covered Engine Failure means a malfunction or failure in
which the engine ceases to operate as intended as a result of improper exhaust valve
performance, specifically meaning a valve or valves which has/have seized, dropped into a
cylinder, jammed, or otherwise become inoperable due to contact with the piston or with other
components of the valve train.
Under the Extended Warranty Coverage, Yanmar will repair or replace, at its option,
without charge for the parts or labor, any Engine with a Covered Engine Failure. If the Class
Member has already replaced or repaired the Engine, Yanmar will reimburse expenses up to a
maximum of $15,000 for repairs or $30,000 for replacement. In order to receive the Extended
Warranty Coverage, a Class Member must comply with the provisions of the Settlement,
including timely filing a claim with Yanmar and providing the requested documentation.
Furthermore, the Extended Warranty Coverage shall not provide for repair or replacement, or
provide reimbursement for prior repairs or replacements, for any Engine which has been
subjected to improper use or maintenance as defined in the Settlement and explained more fully
below.

The foregoing is a short summary of the Settlement. The Settlement is described more
fully later in this Notice, and the full terms of the Settlement Agreement are available at
www.yanmarsettlement.com.
I.

WHY SHOULD I READ THIS NOTICE?

The purpose of this Notice is to inform you about a pending lawsuit and a proposed
Settlement. The Settlement is pending in the Superior Court of Fulton County, Georgia in a class
action lawsuit known as AK El Oso, LLC et al. v. Yanmar Marine USA Corporation et al., Civil
Action No. 2005-CV-102150.
If you are a member of the Class, your rights may be affected by the proposed Settlement.
You should read this Notice to determine whether your rights are affected and the steps
necessary to pursue your rights as a Class Member.
II.

WHO IS A MEMBER OF THE CLASS?

For the purposes of the Settlement, the Court has defined the certified Class to mean:
All persons who, as of March 15, 2007, are current or former owners of Yanmar 6LP or 6LPA
series engines manufactured by Yanmar between September 1996 and February 1, 2002,
specifically including those which a) have a model designation of 6LP-STE, 6LP-STZE, 6LPASTE, 6LPA-STZE, 6LPA-STP or 6LPA-STZP and b) bear a serial number in the range of
50101-53988 or M50001-51195. Excluded from the class are (a) those persons who prior to the
date of this Notice have resolved claims with Yanmar regarding an Engine, as defined in the
Settlement Agreement, relating to a Covered Engine Failure, as defined in the Settlement
Agreement, and (b) any judges, referees, or special masters presiding over any aspect of this
litigation and their immediate family members.
III.

WHAT IS THIS LAWSUIT ABOUT?

Plaintiffs in this lawsuit claim that certain 6LP-S and 6LPA-S engines sold by Yanmar
were defective in that the valve assemblies in those engines did not perform as expected.
Plaintiffs claim that defects in the valve assemblies cause those engines to prematurely fail.
Claims are asserted in the lawsuit under theories of breach of express warranty and breach of
implied warranties.
Yanmar has always denied Plaintiffs claims and in entering this Settlement makes no
admission of wrongdoing or liability to the Class. Yanmar does not believe that the valve
assemblies in the involved engines are defective in any way. Yanmar is entering into this
Settlement solely to stand behind its products and provide extended warranty coverage for the
benefit of its customers.
IV.

WHAT ARE THE TERMS OF THE PROPOSED SETTLEMENT?

Yanmar has settled this lawsuit with Plaintiffs and that Settlement has been preliminarily
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approved by the Court. If the Settlement is given final approval by the Court, Yanmar has
agreed to provide extended warranty coverage benefits to all Class Members. Under this
Settlement, Yanmar agrees to provide Extended Warranty Coverage to all Class Members as
follows: the Extended Warranty Coverage will cover each Engine for 5,000 hours of engine use
or 8 years (96 months), whichever comes first, from the date of initial retail purchase of the
Engine for use. For any claimant with a Light Duty Commercial Warranty, the aforementioned
Extended Warranty Period shall not apply, and Yanmar shall instead provide Extended Warranty
Coverage for the Light Duty Commercial Extended Warranty Period which shall be 4 years (48
months) or 1,250 hours of Engine use, whichever comes first, from the date of original retail sale
for use.
The Extended Warranty Coverage shall be limited to providing coverage for any Engine
which suffers a Covered Engine Failure. Covered Engine Failure means a malfunction or
failure in which the engine ceases to operate as intended as a result of improper exhaust valve
performance, specifically meaning a valve or valves which has/have seized, dropped into a
cylinder, jammed, or otherwise become inoperable due to contact with the piston or with other
components of the valve train. The Extended Warranty Coverage shall not cover any other
failures, malfunctions, or repairs to Engines.
For Claims under the Extended Warranty Coverage for which the Class Member has not
repaired or replaced the Engine, Yanmar will repair or replace, at its option, without charge for
the parts or labor, any Engine with a Covered Engine Failure.
For Claims under the Extended Warranty Coverage for which the Class Member has
replaced or repaired the Engine at the Class Members expense, Yanmar will reimburse the Class
Member for past repairs and replacements of an Engine which were necessitated by any Covered
Engine Failure. Reimbursement for past repairs and replacements shall be made subject to the
following limitations: (a) Yanmar will reimburse any Class Member for repairs upon submission
of the Claim as provided for in the Settlement; however, in no event shall reimbursement exceed
$15,000 for repairs; (b) Yanmar will reimburse any Class Member who has replaced an Engine
for the parts and labor associated with that Engine replacement upon submission of the Claim as
provided for in the Settlement; however, in no event shall reimbursement exceed $30,000 for
replacement of an Engine.
The Extended Warranty Coverage shall not provide for repair or replacement, or provide
reimbursement for prior repairs or replacements, for any Engine which has been subjected to
improper use or maintenance, defined as herein: (a) The Extended Warranty Coverage shall not
cover an Engine maintained in substantial deviation from the maintenance schedule contained in
the Yanmar Operations Manual for that Engine and for which there is a likelihood that the
deviation was the cause of the Covered Engine Failure. A rebuttable presumption that the failure
to properly maintain an Engine caused a Covered Engine Failure shall arise if the following
maintenance has not been performed: (1) Oil and filter changes at least annually or every 250
engine hours; (2) Replacement of the Engine antifreeze, coolant, and/or fresh cooling water as
appropriate per climate at least every other year; (3) Inspection and/or adjustment of the intake
and exhaust valve clearances at 250 hours and at every 1000 engine hours thereafter or
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presentation of the engine to an authorized Yanmar repair facility or dealer for scheduled
maintenance at any of such intervals; (4) Replacement of the timing belt at every 1250 engine
hours. (b) The Extended Warranty Coverage shall not cover an Engine which has been
overpropped or overloaded and for which there is a substantial likelihood that the overpropping
or overloading was the cause of the Covered Engine Failure. (c) The Extended Warranty
Coverage shall not cover an Engine which has been primarily used in high load commercial
vessel applications for which it was not intended; this exclusion shall apply to, but not be limited
to, commercial applications such as tug boats, commercial trawlers, and commercial work boats.
This exclusion is not intended to apply to light-duty commercial applications such as, but not
limited to, patrol boats, charter fishing vessels, police boats, rescue boats, harbor patrol boats,
water taxi boats, navy boats, parasail boats, or pilot boats.
V.

WHAT WILL I GET?

Each Class Member who files a Claim for Extended Warranty Coverage will receive the
repair or replacement, or reimbursement for repair or replacement, subject to the terms of the
Settlement as described above.
VI.

WHAT IF NOTHING IS WRONG WITH MY ENGINE?

Many Engine owners have had no problems with their engine and will not likely have
problems with their engine in the future. Unless you want to object to the Settlement or exclude
yourself from the Class, as discussed below, you do not need to do anything at this time. If in
the future your Engine experiences a Covered Engine Failure, and you are still within the
Extended Warranty Period, you may file a claim at that time under the terms of the Settlement.
VII.

HOW DO I MAKE A CLAIM UNDER THE SETTLEMENT?

To make a Claim for Extended Warranty Coverage under the Settlement, you will need to
submit a written request to Yanmar at the following address:
Cynthia A. Boeh
Manager, Corporate Counsel
Yanmar America Corp.
951 Corporate Grove Drive
Buffalo Grove, IL 60089
You should also provide notice that you have made a claim under the Settlement by
writing to Class Counsel at the following address:
David S. Hagy
Doffermyre, Shields, Canfield, Knowles & Devine, LLC
1355 Peachtree Street, Suite 1600
Atlanta, Georgia 30309
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Your written request for Extended Warranty Coverage must include the following: (a)
verification of current or former ownership of the Engine; (b) documentation of Engine
maintenance; and (c) a description of the vessel(s) in which the Engine was installed and the
purposes for which the vessel was used.
A claim for Covered Engine Failure, including past repairs or Engine Replacement, shall
also include the following document from a Yanmar certified mechanic, repair facility, dealer or
distributor: (a) an inspection report describing the Covered Engine Failure; or (b) a written
statement or affidavit describing the Covered Engine Failure.
A claim requesting reimbursement for past repairs or Engine replacement shall also
include either of the following documents from any repair facility (or mechanic employed at
such), dealer, parts supplier, boatyard or distributor: (a) repair records for the Covered Engine
Failure reflecting the work done, parts repaired or replaced, and amounts paid by the Settlement
Class Member; or (b) repair and replacement records for the Covered Engine Failure reflecting
the work done, parts repaired or replaced, and amounts paid by the Settlement Class Member.
VIII. CLAIM CHECKLIST
If you elect to submit a Claim under the Settlement, you may use the following summary
checklist to ensure that all the required information and documentation is included with any
Claim.

1)
2)
3)
4)

Requests to Repair/Replace
Verification of ownership
Documentation of engine maintenance
Description of vessel
An inspection report or written statement from a Yanmar certified mechanic, repair
facility, dealer or distributor.

Requests for Reimbursement

Verification of ownership
Documentation of engine maintenance
Description of vessel
An inspection report or written statement from a Yanmar certified mechanic, repair
facility, dealer or distributor.
5) Repair or replacement records showing the work done, parts repaired or replaced, and
amounts paid.
1)
2)
3)
4)

IX.

WHAT ARE THE DEADLINES FOR MAKING A CLAIM?

Any Claim seeking reimbursement for past repairs or replacement arising from a
Covered Engine Failure must be mailed to Yanmar at the address above with a postmark or
shipping date no later than September 15, 2007.
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For any Covered Engine Failure for which the Class Member has not repaired or replaced
the Engine, a Claim must be mailed to Yanmar with a postmark date no later than September 15,
2007, by the expiration of the Extended Warranty Period, or, if the Covered Engine Failure
occurs within thirty (30) days prior to the expiration of the Extended Warranty Period, no later
than thirty (30) days after the Extended Warranty Period, whichever date is later.
If your Engine has already suffered a Covered Engine Failure, you should submit your
claim now. If your Engine has not failed at this time, but does so in the future, you may be
eligible for Extended Warranty Coverage if the failure occurs within the Extended Warranty
Period and you otherwise comply with the terms of this Settlement for timely filing a claim.
X.

WHAT ARE MY RIGHTS IF I MAKE A CLAIM?

Yanmar will provide the benefits of the Extended Warranty Coverage to any Class
Member who submits a qualifying claim within sixty (60 days) from the submission of the
Claim. If Yanmar denies the Claim, you will have the right to appeal to a Special Master
appointed by the Court. Additional details regarding how to appeal a denial of Extended
Warranty Coverage will be provided to you should a claim you submit be denied. Additional
information regarding the Claims and Special Master appeals procedure are contained in the
Settlement Agreement.
XI.

WHAT DO I GIVE UP IN THE SETTLEMENT?

As part of the Settlement, all claims asserted in this lawsuit will be resolved and all Class
Members will release Yanmar for liability in connection with the claims asserted in this lawsuit.
If you do not wish to obtain the benefits of this Settlement and release Yanmar from liability in
connection with claims asserted in this lawsuit, you may elect to opt out. If you do not opt out,
and the Settlement receives final approval from the Court, you will release Yanmar from all
claims arising from the Engine, except as set forth in the Settlement, regardless of whether you
choose to make a claim under the Extended Warranty Coverage.
XII. ATTORNEYS FEES AND EXPENSES
The Court has appointed as Class Counsel Everette L. Doffermyre and David S. Hagy of
Doffermyre, Shields, Canfield, Knowles & Devine in Atlanta, Georgia and Jeb T. Branham of
Jacksonville, Florida. Class Counsel will apply to the Court for attorneys fees and expenses to
be paid by Yanmar in addition to the benefits being paid under the Settlement to the Class. Class
Counsel will request attorneys fees and expenses not to exceed $700,000.
XIII. FINAL APPROVAL HEARING AND RIGHT TO OBJECT
The Court will hold a final hearing to determine the fairness of the proposed settlement
on July 19, 2007 at 9:30 a.m. before the Hon. Judge T. Jackson Bedford, Jr. in the Fulton County
Courthouse in Atlanta, Georgia. At the Fairness Hearing, the Court will determine whether the
7

proposed Settlement is fair, reasonable, and adequate. The hearing will also address Class
Counsels application for an award of attorneys fees and expenses. The hearing may be
adjourned, continued, or postponed by the Court without further written notice.
At the Fairness Hearing, any member of the Class may, pursuant to this Notice, appear in
person or by counsel (at his or her own expense) and be heard to the extent allowed by the Court
in support of, or in opposition to, the fairness, reasonableness and adequacy of the Settlement or
Class Counsels application for an award of attorneys fees and expenses.
If you want to object to the Settlement, you must file your objection in writing with the
Clerk of the Superior Court of Fulton County, Georgia no later than June 15, 2007. You must
also deliver your objection by hand delivery or overnight delivery to David S. Hagy,
Doffermyre, Shields, Canfield, Knowles & Devine, 1355 Peachtree Street, Suite 1600, Atlanta,
Georgia 30309 and Jerry Blackwell, Blackwell Burke, P.A., 33 South Sixth Street, Suite 4600,
Minneapolis, Minnesota 55402.
XIV. HOW CAN I GET OUT OF THE SETTLEMENT?
If you do not want the Extended Warranty Coverage benefits described in this Notice, but
you want to keep any right you may have to sue or continue to sue Yanmar, on your own, about
the claims asserted in this class action lawsuit, then you must take steps to get out. This is called
excluding yourself or is sometimes referred to as opting out of the Settlement Class. To
exclude yourself from the Class, you must do so in a signed writing: (i) stating that you want
to be excluded from the Class in AK El Oso, LLC, et al. v. Yanmar Marine USA Corporation, et
al.; and (ii) stating your name and a mailing address. You are also requested to include on your
exclusion request the model designation and serial number of your Yanmar engine. All
exclusion requests must be mailed to the following address with a postmark no later than June
15, 2007:
Yanmar Settlement
c/o Archway Claims Administration
28220 Industry Drive
Valencia, CA 91355
A Request for Exclusion is included with this Notice for your use.
You cannot exclude yourself by telephone or email. If you ask to be excluded, you will
not get any of the benefits of the Extended Warranty Coverage. If you ask to be excluded, you
will not be legally bound by what happens in this lawsuit.
XV. WHAT IS THE DIFFERENCE BETWEEN OBJECTING AND EXCLUDING?
Objecting is telling the Court that you do not like something about the proposed
Settlement and/or Class Counsels request for attorneys fees and expenses. You can object only
if you stay in the Class. However, if you objection is rejected and the Settlement and/or Class
Counsels request for attorneys fees and expenses are approved by the Court, you will be bound
by the Settlement just as if you had not objected.
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Excluding yourself is telling the Court that you do not want to be part of the Class. If you
exclude yourself, you have no basis to object because the case no longer affects you.

XVI. HOW CAN I LEARN MORE?

For a more detailed description of the matters involved in this class action, reference is
made to the pleadings, the Settlement Agreement, and the other papers filed in this action, which
may be inspected during normal business hours at the Clerk of Court, Superior Court of Fulton
County, Georgia. Additional information is available by calling 1-800-507-9765. If you wish to
communicate with or obtain information from Class Counsel, you may do so by writing to Class
Counsel. DO NOT CONTACT THE COURT.
COPIES OF THE SETTLEMENT AGREEMENT AND OTHER RELEVANT
DOCUMENTS MAY BE VIEWED AT WWW.YANMARSETTLEMENT.COM.
This Notice provides only a summary of matters regarding the case. You may seek the
advice and guidance of your own private attorney, at your own expense, if you wish.
DATED: March 15, 2007
BY ORDER OF THE COURT, SUPERIOR COURT OF FULTON COUNTY, GEORGIA

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REQUEST FOR EXCLUSION

Read the enclosed legal notice carefully before filling out this form.
This is a written request to be excluded from the Class and the Class Action Settlement in
AK El Oso, LLC, et al. v. Yanmar Marine USA Corporation, et al, pending in the Superior Court
of Fulton County, Georgia.
By submitting this request, the undersigned irrevocably elects to be excluded from the
Class in AK El Oso, LLC, et al. v. Yanmar Marine USA Corporation, et al. and will not receive
any benefits from the Settlement.
This Request for Exclusion is submitted on behalf of:
Name: _____________________________________________________________
Mailing Address: _____________________________________________________
_____________________________________________________
Yanmar Engine Model #________________________________________________
Serial Number of Yanmar Engine: ________________________________________
Date of Purchase: _____________________________________________________

This Request for Exclusion must be postmarked no later than June 15, 2007. The
Request should be mailed to the following address:

Yanmar Settlement
c/o Archway Claims Administration
28220 Industry Drive
Valencia, CA 91355

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