Posts Tagged ‘autos’

Class action roundup: tires, Western Union, jam

At the new multi-author blog Marginal Revolution, Alex Tabarrok writes that he’s angry: “The lawyers will get $19 million, the plaintiffs have no damages and I have been involved in an abuse of justice. I received notice yesterday that I was a plaintiff in a class action lawsuit against Bridgestone/Firestone that is about to be settled. I was never injured by Firestone but that’s ok because injured people have their own lawsuit the one I am involved in is for people who were not injured. The lawsuit reads ‘Plaintiff Does Not Seek To Represent And This Litigation Does Not Involve Any Person Who Alleges That He or She Suffered Any Personal Injury or Property Damage Because Of A Failure Of One Of The Tires’ (capitalization in original.) Bear in mind that Firestone has already replaced all four of my tires with a competitor’s brand for free and similarly for many of the other plaintiffs.” (Sept. 16) Co-blogger Tyler Cowen at the same site isn’t any happier to discover that he is a member of the class in a suit against Western Union over its wire-funds-abroad service charging that, according to the legalese, “…the Defendants [made] misrepresentations about or otherwise failing to disclose to customers the fact that they received a more favorable exchange rate for converting U.S. dollars to foreign currency and foreign currency to U.S. dollars than they provided to their customers.” “Imagine that” — writes Cowen — “a middleman buying and selling at different prices!” (Sept. 17). (More: see KrazyKiwi, Oct. 8).

Meanwhile, a Wisconsin man has filed an intended class action lawsuit against jam maker J.M. Smucker after the Washington-based anti-business group Center for Science in the Public Interest published a report claiming that Smucker’s “Simply 100 Percent Fruit” products were falsely labeled because only a minority of the actual contents of a jar of strawberry or blueberry “Spreadable Fruit” consisted of those berries, the remainder consisting (as Smucker’s labeling makes clear) of syrups, concentrates and extracts derived from other fruits such as apple, grape, lemon and pineapple. (“Smucker’s Spreads Not All Fruit, Lawsuit Says”, AP/FoxNews, Sept. 5 — if you’re looking for a deceptive claim, how about the one conveyed by that headline?). The food-industry-defense Center for Consumer Freedom levels an interesting accusation against CSPI, namely that bounty-hunting lawyers suing under California’s Proposition 65 law seemed to have mysterious psychic powers to divine in advance exactly what was going to be in a CSPI report on supposed killer french fries — either that, or CSPI shared the information with them before it went public with its allegations. See “We, the jury, find the defendant ‘starchy'”, CCF, Jul. 17 (third from last paragraph); “CSPI: 100 Percent Litigious”, CCF, Sept. 8; “Latest Acrylamide Panic Based on Fudged Numbers” (press release), CCF, Jul. 10. For more on the French fry suit, see Dec. 27-29, 2002.

AAA settles murdered-motorist suit

The AAA auto club has reached a settlement on confidential terms of the lawsuit by the survivors of Melissa Gosule, attempting to hold it liable for her murder by a stranger who gave her a ride after a AAA tow truck driver took too long to get her on her way (see Sept. 8). (John Ellement, “Family settles suit against AAA, driver”, Boston Globe, Sept. 11).

AAA sued over stranded motorist’s murder

In the latest lawsuit seeking to find a large enterprise liable for the murder of a stranded female motorist, the survivors of Melissa Gosule are beginning a trial against the AAA auto club over the dilatory way in which it set about rescuing her after her car broke down on Cape Cod in 1999. Ms. Gosule instead accepted a ride from a stranger who turned out to have a long criminal record, and who murdered her. “Every year, the American Automobile Association, with a dues-paying membership of more than 46 million in the United States and Canada, gets about 30 million calls from motorists who need help with dead batteries, flat tires and other roadside problems.” (Denise Lavoie, “Auto club goes on trial over slaying of motorist”, AP/San Francisco Chronicle, Sept. 8). Last month (see Aug. 9) the Nebraska Supreme Court ruled that the family of Amy Stahlecker could not sue the Ford and Firestone companies after a tire blowout left her stranded at the side of the road, where she was picked up and murdered by a stranger. Update Sept. 14: AAA case settles.

Couldn’t get $11 M for drinking himself into coma

From Lowell, Mass. comes word that a jury has rejected a suit asking that Joseph Albert be awarded millions of dollars for drinking himself into a coma. Attorney Peter J. Nicosia of Tyngsboro asked $11 million in a “dramshop liability” suit against Gus & Paul’s Tavern for serving an undetermined number of beers over two hours to Albert, who was found by police later that night with a blood-alcohol level at a startling .48. Complicating Nicosia’s case was a deposition from a boon companion of Albert’s saying that the plaintiff had been drinking from a bottle of Jack Daniel’s whiskey after leaving the tavern. “I played that off to be basically an untrue story and basically a red herring,” said attorney Nicosia of the Jack Daniels. “The bottle was never found; no one ever saw him drink it.” The jury evidently wasn’t persuaded. (Jeanne Greeley, “Tragic Dram-Shop Case Just Had Too Many Holes”, Massachusetts Lawyers Weekly, Jun. 30). In another of last year’s big defense wins in the Bay State, a jury decided it wasn’t General Motors’ fault that a mother had left her Chevy Astro van running with the keys in the ignition and occupied by her infant with her 4-year-old sister; the pre-schooler climbed into the front and shifted the transmission, causing the van to roll into a pond. (Kelly Winget, “Tot rolls van into pond”, Lawrence Eagle-Tribune, Jul. 18, 2000).

Update: GM settles Malibu case

General Motors has settled on undisclosed terms the suit in which a Los Angeles jury awarded $4.9 billion, later knocked down to a mere $1.2 billion, to six people injured when their Chevy Malibu was rear-ended by a drunk driver; the plaintiff’s lawyers had charged the Malibu with defective design, although federal statistics show it to have a safety record well above average (see Dec. 16, 1999 and links from there). And contrary to reports (including ours) that trial lawyers were managing to kill off car-lease reform in Rhode Island, major automakers said they would remain in the Ocean State leasing market after Gov. Don Carcieri on Jul. 7 signed legislation which for one year caps at $300,000 the liability of car lessors for accidents that their lessees get into (see Jul. 14). The change leaves New York as the only state with unlimited vicarious liability for lessors. (“Business: National Briefs”, Detroit News, Jul. 25).

Car-lease liability crisis continues in N.Y., R.I.

Following heavy lobbying by trial lawyers, the lower houses of the New York and Rhode Island legislatures have refused to act to limit auto leasing companies’ currently unlimited “vicarious liability” for their lessees’ crashes, thus apparently ensuring that Ford, Honda and other major automakers will continue fleeing from the two states. We covered the controversy in a Jun. 9 op-ed as well as in earlier posts. New coverage: Ed Garsten, “Firms halt N.Y. vehicle leases”, Detroit News, Jul. 6; Matt Smith, “Auto leasing companies fleeing state”, Ottaway/Middletown Times-Herald Record, Jul. 2; Jeremy Boyer, “Dealers steer way past loss of leasing”, Albany Times-Union, Jul. 3; “Bill Limiting Accident Liability Appears Doomed”, TurnTo10.com (WJAR-TV Providence), Jun. 30 (R.I.). Update Aug. 3: Reform not doomed in R.I. after all, major automakers agree to stay after governor signs one-year fix limiting liability to $300K, leaving N.Y. as only state with unlimited liability.

Update: San Antonio evidence-faking and witness-tampering case

The Texas case we covered on May 23 and Jun. 26, 2000 and Mar. 17 of this year has now eventuated in a suit by DaimlerChrysler against the Kugle Law Firm. A trial court dismissed the Kugle firm’s $2 billion suit against Chrysler and imposed sanctions of $865,000 against three of the firm’s lawyers after finding that the steering decoupler of the sued-over Dodge Neon had been altered to simulate mechanical failure and that Mexican policemen had been asked to change their accounts of the accident giving rise to the suit. An appeals court called the firm’s conduct ‘an egregious example of the worst kind of abuse of the judicial system.'” “The senior lawyer at the firm, Robert A. Kugle, has been suspended from the Texas bar and has moved to Mexico. He could not be located for comment.” (Adam Liptak, “Law Firm Is Sued Over Conduct in Liability Case”, New York Times, Jul. 10; AP/Miami Herald; San Antonio Express-News). More: David Giacalone at EthicalEsq.? weighs in.

Archived auto items, pre-July 2003

Leasing liability:‘Silver’s wreck’“, Jun. 9, 2003; “Auto-lease liability: deeper into crisis“, May 21; “‘Automakers may stop leasing vehicles in N.Y.’“, Mar. 12-14, 2003; “R.I.: No more cheap car leases?“, Aug. 26, 2002. 

Romo v. Ford Motor Co.:Update“, Jun. 2, 2003; “‘California Court Upholds $290 Million Injury Jury Award Against Ford’“, Oct. 24, 2002; “You read it here first“, Aug. 27, 2002; “Tainted by ’60 Minutes’“, Sept. 17-19, 1999; “The dream verdict” (California Bronco award), Aug. 24, 1999. 

Steering the evidence” (DaimlerChrysler gets sanctions against lawyers for evidence and witness tampering), May 23, 2000 (& updates Jun. 26, 2000, Mar. 17, 2003). 

‘The Lawyers Are Lurking Over S.U.V.’s’“, Jan. 9, 2003.

Tires:Blaming murder on flat tire“, Jun. 4-5, 2003; “Hey, no fair talking about the pot” (rollover), Apr. 12-14, 2002; “‘Plaintiff’s lawyers going on defense’” (Reaud represents Bridgestone Firestone), Oct. 9, 2001; “‘Lawyers put profit before lives’“, June 28; “Trial lawyers knew of tire failures, didn’t inform safety regulators“, June 25 (& letter to the editor, July 6); “Big numbers” (Continental General Tire, Cooper Tire), April 16, 2001; “Product liability criminalized?“, Oct. 20-22, 2000; “Hasty tire judgments“, Oct. 16-17; “Who caught the tire problem?“, Sept. 15-17; “‘Feeding frenzy over Firestone’“, Sept. 11, 2000.

Ford didn’t push pedal extenders, suit says“, Feb. 27-28, 2002 (& letter to the editor, Apr. 11). 

‘Drunken Driver’s Widow Wins Court’s OK To Sue Carmaker’” (VW), Feb. 25-26, 2002. 

Chrysler dodges a $250 million dart“, Dec. 7-9, 2001; “Miami jury to Ford: pay $15 million after beltless crash“, Sept. 24, 2001. 

Disclaimer rage?” (GPS software), Oct. 15, 2001. 

When trial lawyers help redesign cars” (Thornburgh on GM trucks), Aug. 6, 2001. 

Airbags:‘Airbag chemical on trial’“, Aug. 14, 2000; “Deflated“, May 16, 2000; and see Oct. 20-22, 2000 (Henry Payne cartoon). 

Drive 60K miles, collect $273K“, Jan. 9, 2001; “Tales from the tow zone” (verdict against Chrysler), Oct. 31, 2000. 

Highway responsibility” (GM sued in Derrick Thomas speeding-on-ice crash), Nov. 28, 2000. 

Product liability criminalized?“, Oct. 20-22, 2000. 

Target Detroit” (mass litigation; S.U.V.’s; class action firm countersues DaimlerChrysler and exec personally), Jul. 19-20, 2000; “Turning the tables” (DaimlerChrysler sues class action lawyers), Nov. 12, 1999. 

Nader on the Corvair“, July 13, 2000; “Nader, controversial at last“, June 13, 2000; “Deflated“, May 16, 2000. 

Sudden deceleration” (NHTSA rejects petition for sudden-acceleration probe), Jun. 6, 2000. 

‘Saints, sinners and the Isuzu Trooper’“, April 14-16, 2000; “Verdict on Consumer Reports: false, but not damaging” (Isuzu v. Consumers Union), Apr. 10, 2000. 

$65 million Texas verdict: driver at twice the legal blood limit” (drunk driver’s estate sues Honda over seat belt), Mar. 28, 2000. 

‘Motorists speed more, but fewer die’“, Feb. 19-21, 2000. 

GM verdict roundup” (Anderson v. General Motors fallout continues), Dec. 16, 1999; “L.A. judge cuts award against GM to $1.2 billion“, Aug. 27, 1999; “In L.A., redesigning the Chevy” ($5 billion Malibu gas tank verdict), Jul. 10, 1999 (& see update Aug. 3, 2003, case settled on undisclosed terms). 

Toshiba and Ford, in the same boat“, Dec. 2, 1999. 

‘Wretched excesses of liability lawsuits’” (David Boldt, Philadelphia Inquirer), Nov. 29, 1999. 

Responsibility, RIP” (columnist Mona Charen), Nov. 2, 1999. 

Zone of blame” (policeman shot in his cruiser, automaker sued), Oct. 27, 1999. 

Rhode Island A.G.: let’s do latex gloves next” (speed governors on cars), Oct. 26, 1999. 

The art of blame” (Ford sued after child left in parked van in sun dies of overheating), Oct. 20, 1999. 

Demolition derby for consumer budgets” (class action against State Farm over generic crash parts), Oct. 8, 1999.

Yes, it is personal” (automotive engineers take design-defect suits as personal accusations), Oct. 7, 1999.

Too many games at GM?” (Atlanta ruling on Ivey memo controversy), September 10, 1999.

Do as we say (II): gun-suit hypocrisy in Detroit” (gun- and automakers both sued after criminal misuse of their products), Aug. 30, 1999.
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[additional essay on auto design liability here]

About auto litigation (1999)

Archived entries before July 2003 can be found here, where the following brief essay originally appeared:

The finest achievement of American trial lawyers, to hear many of them tell it, has been their success in identifying unsafe models of automobile and forcing them off the road. The Ford Pinto case is invariably put forth as an example of how a big company knowingly designed and sold an obviously defective vehicle for which it was properly chastised by means of large jury awards. (Ralph Nader has promised to put a Pinto exhibit in his proposed Museum of American Tort Law.) Almost as well known has been litigation over claims of “sudden acceleration” in Audi 5000s, in which the German-made sedans were said to dart inexplicably out of control even though their owners were pressing the brake pedal with all their might.

To be sure, the Audi case presents an inconvenient complication, namely that the cars weren’t inexplicably accelerating — a series of conclusive government investigations found that the drivers were in fact mistakenly pressing the accelerator thinking they were on the brake. Likewise with the controversy over “sidesaddle” gas tanks on some GM full-size pickup trucks, said to be inexcusably unsafe in side-impact collisions but revealed in real-world crash statistics to be considerably safer than the average vehicle on the road (which did not keep lawyers from winning at least one huge verdict against them).

Trial lawyers offer up the auto safety issue to public audiences and juries as a simple, satisfying morality play of wicked automakers versus helpless victims. It is seldom clear, however, what they would consider to be adequate safety performance. Every mass maker of vehicles for the U.S. market — even Volvo, even Lexus, even BMW — has faced lawsuits in American courts alleging that its designs are impermissibly unsafe. The explanation is not that all models are defectively designed, but that drivers of all models get into accidents — and when crash victims’ injuries are serious and the other driver underinsured, lawyers will often stretch quite a ways to find some theory or other that allows them to pull in the maker of the car as a defendant. Many such theories are available because auto design is a complex subject, because the circumstances in which accidents take place are often factually muddled and open to dispute, and because the design of all vehicles, even the full-size Mercedes, involves trade-offs between safety vs. expense, safety vs. convenience/enjoyment, and safety vs. safety (protecting passengers from front impacts versus protecting them from side impacts, for instance). But some trial lawyers seem to be willing to get up in front of a jury and downplay even well-known, longstanding safety trade-offs in vehicle design — such as the greater rollover hazard that drivers face in convertibles and in off-road vehicles with high ground clearance — in favor of the theory of a sinister conspiracy in executive suites to kill customers.

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The Audi case is written up at length in Chapter 4 of Peter Huber’s magisterial Galileo’s Revenge: Junk Science in the Courtroom (Basic Books, 1991), which is not online but is available through the Overlawyered.com bookstore. It is also discussed more briefly in his article “Junk Science in the Courtroom“. A short but vivid account appears in P. J. O’Rourke’s humorous account of the workings of government, Parliament of Whores (Atlantic Monthly Press, 1991, pp. 86-87). The notorious “60 Minutes” show attacking the Audi comes in for a drubbing in our editor’s 1993 National Review expose of dubious crash journalism, “It Didn’t Start With Dateline NBC“, adapted and reprinted in The Rule of Lawyers, and is the subject of a valuable retrospective in the August 1998 Brill’s Content by Greg Farrell (“Lynched: Lurching Into Reverse”), which in turn provoked a fairly hysterical response from CBS executives.

In 1993, “Dateline NBC” was caught in one of the great television scandals of all time: filming a supposed “crash test” of a GM full-size pickup being hit and bursting into flames without telling viewers that the truck had been rigged with hidden incendiary devices and tampered with in various other ways to make a fire more likely. But in fact TV newsmagazines had been running highly dubious “crash test” footage for many years; the main difference was that in this case NBC happened to get caught. In the Dateline case, as in many previous instances of fakery, the network was guided and advised by crash “experts” who happened simultaneously to be working for the plaintiff’s lawyers in suits over the defects being alleged in the TV coverage. Not by coincidence, NBC aired its bogus report not long before an Atlanta jury was to hear a major liability suit against GM, the target of the show; they proceeded to vote an award of $105 million.

Overlawyered.com’s editor weighed into the controversy with pieces on the truck’s safety record (“‘The Most Dangerous Vehicle on the Road’“, Wall Street Journal, February 9, 1993), on the media’s reliance on plaintiff’s experts (“Exposing the ‘Experts’ Behind the Sexy Exposes“, Washington Post, February 28, 1993), and on the earlier history of questionable crash-test journalism at American networks (“It Didn’t Start With Dateline NBC“, National Review, June 21, 1993).

On the Ford Pinto case, the best resource is unfortunately not online, but is well worth a trip to the local law library now online: the late Gary Schwartz’s 1991 Rutgers Law Review article “The Myth of the Ford Pinto Case” (43 Rutgers L. Rev. 1013-1068). Schwartz, a law professor at UCLA and prominent expert on product liability, showed that (as our editor summed up his findings in 1993): “everyone’s received ideas about the fabled ‘smoking gun’ memo are false. The actual memo did not pertain to Pintos, or even Ford products, but to American cars in general; it dealt with rollovers, not rear-end collisions; it did not contemplate the matter of tort liability at all, let alone accept it as cheaper than a design change; it assigned a value to human life because federal regulators, for whose eyes it was meant, themselves employed that concept in their deliberations; and the value it used was one that they, the regulators, had set forth in documents. In retrospect, Schwartz writes, the Pinto’s safety record appears to have been very typical of its time and class.”

In July 1999, rekindling a public debate about the irrationality of jury decisions in product liability cases, two California juries returned enormous verdicts within three days of each other: a Los Angeles jury voted $5 billion against GM for the allegedly defective design of its 1979 Chevrolet Malibu, and a jury in rural Ceres, Cal. returned a $290 million verdict against Ford in a case against its Bronco truck. The cases are discussed on Overlawyered.com in the entries for July 10, August 27 and September 10 (GM) and August 24 (Ford). In the General Motors case, plaintiffs successfully prevented GM from telling the jury that the accident had been caused by a drunk driver who had been convicted of a felony and imprisoned over the accident; or that the Malibu’s real-life crash statistics showed it to be safer than the average car of its era; or that the alternative crash design proffered by plaintiffs raised safety concerns of its own and was not widely used by other makers. In the Ford case, a long series of emotionally manipulative trial tactics by the plaintiff’s lawyers paid off when one juror told her colleagues that the reason they had to vote for liability had come to her in a dream.

In April 2000, after a two-month trial, the tables were turned when a federal jury found that the magazine Consumer Reports, frequently aligned with the trial-lawyer side in legislative fights, had made numerous false statements in its October 1996 cover story alleging a dangerous propensity to roll over in the 1995-96 Isuzu Trooper sport utility vehicle, but declined to award the Japanese carmaker any cash damages. The jury found that CR’s “testing” had put the vehicle through unnatural steering maneuvers which, contrary to the magazine’s claims, were not the same as those to which competitors’ vehicles had been subjected. Jury foreman Don Sylvia said the trial had left many jurors feeling that the magazine had conducted itself arrogantly, and that eight of ten jurors wanted to award Isuzu as much as $25 million, but couldn’t see their way to overcoming the high threshold to proving “malice”. The jury found eight statements in the article false, but in only one of these did it determine CR to be knowingly or recklessly in error, which was when it said: “Isuzu … should never have allowed these vehicles on the road.” However, it ruled that statement not to have damaged the company, despite a sharp drop in Trooper sales from which the vehicle later recovered.