“It may sound silly, but lost resale value is what cost Toyota a whopping $1.3 billion in claims when those suits were settled in late 2012.” And if lawyers can extract $1.3 billion in a case where there was nothing wrong with the cars, imagine how much they might extract in a case where there was. [Jalopnik]
Posts Tagged ‘autos’
Firecracker or steering defect?
Hyundai expects to appeal a $240 million punitive award in Montana [ABA Journal on award and causation dispute]
Lawsuit: Porsche carrying Paul Walker was going 55, not 94
After the spectacular crash of a Porsche Carrera GT killed driver Roger Rodas and his passenger, Hollywood actor Paul Walker, the Los Angeles County Sheriff’s Department and California Highway Patrol investigated and concluded that the crash was due not to mechanical problems but to unsafe speeds of up to 94 mph; the vehicle crashed into three trees. Longtime Overlawyered favorite attorney Mark Geragos “said he hired the top experts in the country” for an unbiased evaluation. The resulting wrongful death lawsuit by Kristine M. Rodas against automaker Porsche “says her husband was driving at 55 mph” contrary to the official version. [New York Post]
April 30 roundup
- “7 Reasons U.S. Infrastructure Projects Cost Way More Than They Should” [Scott Beyer, Atlantic Cities]
- Gov. Jerry Brown’s appointments could reshape California Supreme Court [Mark Pulliam, City Journal]
- Critics say hiring of outside counsel in Pennsylvania government is an insider’s game [WHTM]
- Could “Bitcoin for contracts” replace legal drafters’ expertise? [Wired with futurist Karl Schroeder]
- “Getting state out of marriage” makes for neat slogan but results would be messy in practice [Eugene Volokh]
- Lobbying by auto body shops keeps Rhode Island car repair costs high [Providence Journal, PCIAA press release and report in PDF]
- “Bipartisan, publicity-hungry members of Congress want the FTC to investigate Photoshopping in ads” [Virginia Postrel on this WaPo report; Daily Beast; earlier here, here, etc.]
Speaking of European labor-law rigidity…
The Wall Street Journal last month (paywalled, no link) reported on how the long-moribund British auto industry now has a striking success, BMW’s Mini plant in Oxford, along with a hopeful sign for the future, Tata Motors Ltd.’s plans to invest $2.5 billion in its Jaguar plant in Solihull:
Workplace flexibility is a big factor behind the success of the U.K.’s auto industry, experts say. The Mini plant operates under the “working time account” model, which lets employees build up extra working hours that they can then draw on in downtime. …
“This is impossible in the rest of Europe on any relevant scale because of local legislation that protects workers’ rights and pay,” said John Leech, head of the U.K. automotive section at consultancy KPMG.
Students “told to destroy rare Dodge Viper”
Olympia, Wash.: “A community college says it’s the pride of their automotive technology program: a rare Dodge Viper donated to their school worth hundreds of thousands of dollars.” It’s believed to be the fourth one off the assembly line. But now Chrysler has “ordered the destruction of their entire educational Viper fleet.” It seems that while the prototypes were never meant to be driven on public roads, “two of them somehow got out and into accidents, costing Chrysler’s parent company millions of dollars.” Things might be different if our law respected a sale or other contractual agreement between Chrysler and the school as reason to release the manufacturer from a suit filed by an injured third party. But it doesn’t. Chrysler’s deadline for ordering the cars crushed has now passed; no word at present as to whether any of the cars have been reprieved or otherwise survived. [KING, AutoWeek, Tacoma News Tribune, Motor Trend]
Welcome Wall Street Journal readers
Last week the Department of Justice announced a deal with Toyota in which the Japanese automaker would fork over $1.2 billion and place itself under supervision for allegedly not being forthcoming enough with information at the height of the 2009-2010 panic over claims of unintended acceleration in its cars. The acceleration claims themselves had turned out to be almost entirely bogus, and were refuted in a report from the federal government’s own expert agency, NHTSA. Instead, the prosecution relied on a single count of wire fraud: Toyota had supposedly given regulators, Congress and the public an erroneously positive view of its safety efforts. It should therefore have to “forfeit” a huge sum supposedly related to the volume of business it did over a relevant period.
I’ve got an opinion piece in Monday’s Wall Street Journal (unpaywalled Cato version here, related Cato post here) about this whole appalling affair, which should frighten other businesses that might face draconian charges in future not just for compliance infractions, but more broadly for defending their products in the court of public opinion. Meanwhile, the Justice Department’s grandstanding and demagogic press release goes to some lengths to leave the impression “that unintended acceleration is some mysterious phenomenon of auto design unrelated to flooring the accelerator.” Someone here is irresponsibly misleading the motoring public and withholding vital safety information, but it’s not Toyota.
A few related links: NHTSA unintended acceleration report, Car & Driver’s coverage, and my 2010 opinion piece. And Holman Jenkins at the WSJ (paywalled) compares the still-unfolding story of ignition problems at GM, also discussed by Paul Barrett at Business Week.
Labor notes from Tennessee
Hilarious: Steven Pearlstein column gloats re: unstoppable UAW-at-Volkswagen tide of history, reaches print after vote [WaPo; “claque,” “rabid,” “Babbitts,” etc.] “We also looked at the track record of the UAW. Why buy a ticket on the Titanic?” [Reuters] “No wonder they wanted card check.” [Mickey Kaus; more, Kevin Williamson]
“New car smell” blamed for fatal accident
Police in Santa Cruz, Calif. say the driver of a new Tesla had fallen asleep at the wheel last November when his car struck and killed a bicyclist. 63-year-old retired tech executive Navindra Kumar Jain told police that “new car smell” had caused him to nod off and that there were no other mechanical problems with the vehicle. A lawsuit filed by the victim’s family names both Tesla and Jain as defendants. [Santa Cruz Sentinel, San Jose Mercury-News, San Francisco Chronicle]
Privacy and surveillance roundup
- “Live or travel within 100 miles of a US Border? America’s Internal Checkpoints” [Wes Kimbell, Reason]
- EFF, ACLU sue Los Angeles seeking disclosure of how automatic license plate readers [ALPRs] are used to track motorists [The Newspaper]
- Would cops run unauthorized background checks on someone appointed to a police oversight board? [Ed Krayewski/Reason, St. Louis County, Mo.]
- “How the NSA bulk data seizure program is like gun registration” [Randy Barnett]
- Text sent to Kiev protesters points up downside of cellphone location signaling: “Dear subscriber, you are registered as a participant in a mass disturbance.” [NY Times]
- As New York AG Schneiderman pursues AirBnB, privacy is collateral damage [Ilya Shapiro and Gabriel Latner, Daily Caller]
- Oops! California Obamacare exchange passed along visitors’ personal info to insurance agents without permission [L.A. Times]