The City of Traverse City could become the lead plaintiff in a class action lawsuit of Michigan municipalities against auto parts manufacturers accused of price fixing. City commissioners will vote to approve an attorney representation agreement Monday night.

California-based legal firm Green & Noblin is offering to represent Traverse City as the class representative for all state municipalities against at least five manufacturers of electrical wire harness systems – used in almost every produced motor vehicle – who have been the subject of ongoing federal antitrust investigations for accusations they conspired to rig bids and fix prices on new-car parts.

The litigation is part of the largest ever antitrust criminal investigation undertaken by the U.S. Department of Justice. To date, 20 companies – including Hitachi Automotive, Mitsuba Corp. and Yazaki Corporation – have pleaded guilty to charges of price fixing on more than 30 different automotive products, agreeing to pay $1.6 billion in fines. Criminal charges have also been filed against 21 executives of those companies. The companies sold their parts to nearly every major automaker in the U.S., including Ford, Chrysler, General Motors, Honda, Mazda, Mitsubishi, Nissan and Toyota.

More than 25 million cars purchased by American consumers were affected by the illegal operation, according to U.S. Attorney General Eric H. Holder Jr.

Traverse City garage records indicate the city purchased 116 vehicles between 2000 – the beginning of the antitrust violation period – and 2014 that might contain electrical wire harness systems that were price fixed, thus potentially qualifying for damages via litigation. An attorney for Green & Noblin with Traverse City connections approached city leadership about the possibility of being the named plaintiff in a lawsuit that could eventually help cities throughout Michigan recoup their share of dollars.

“Under the terms of the proposed (attorney agreement), the city will not be responsible for any costs of the litigation other than staff time to gather the records and depositions, (nor) attorney fees,” Traverse City Manager Jered Ottenwess wrote in a memo to city commissioners. Instead, Green & Noblin's compensation would be contingent upon – and determined by – a recovery in court. In the event of such a recovery, any costs incurred by the city for staff time would also likely be compensated.

“There's really no risk in terms of money, and the investment of staff time should be minimal,” Ottenwess tells The Ticker. He notes the city has already compiled much of the required information for the case through its preliminary discussions with Green & Noblin.

Ottenwess adds that estimating a potential damages dollar amount would be “completely speculative” at this point, though he believes it would likely be “a relatively small amount.” The benefit to the city, he says, lies in a combination of the case's low risk and the opportunity to provide recourse for both Traverse City and other communities throughout the state that might have been victims of the scheme.

“It's more about providing a public service by helping to create this class so that other municipalities can join in,” says Ottenwess. “There's a clear community benefit involved.”

Five affirmative votes are required by the city commission to enter into the agreement with Green & Noblin. Commissioners will review the issue at their Monday night meeting at 7pm at the Governmental Center at 400 Boardman Avenue in downtown Traverse City.