Overlawyered: Chronicling The High Cost Of Our Legal System

Posts Tagged ‘Detroit’

Location, Location, Location

Opponents of medical malpractice tort reform often argue that malpractice premiums are on the rise because insurance companies made bad investments, not because of out-of-control jury awards. But, if that’s so, then why do premiums vary so widely by geography? Consider the rates in Cleveland, Ohio, a city that can lay claim to some of the most aggressive trial lawyers in the state, as well as some of the most generous juries:

A comparison of standard, non-discounted rates the American Physicians Assurance Corporation charges in Ohio, Illinois and Michigan shows doctors in Cuyahoga County paying the highest rates in almost every category, and nearly double the Columbus tariff.

For instance, neurosurgeons in Cuyahoga County paid $212,000 annually, while their colleagues in Columbus paid $118,000 in malpractice premiums. Doctors in the high-risk specialties also paid about $20,000 less in Chicago and Detroit than their counterparts in Cuyahoga County.

‘The fact is, a day doesn’t go by when a Northeast Ohio doctor doesn’t get sued for multimillions of dollars,’ says Myers.

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Update: Mich. high court throws out Chrysler harassment award

It won’t come as much surprise to readers of our May 31, 2001 item (“Fieger’s firecrackers frequently fizzle”) that the Michigan Supreme Court has thrown out controversial attorney Geoffrey Fieger’s $20 million jury win on behalf of Linda Gilbert, a female millwright harassed by co-workers at a Chrysler assembly plant in Detroit. “The jury verdict is so excessive and so clearly the product of passion and prejudice that there can be no justification for the trial court’s denial of defendant’s motion for a new trial,” wrote Justice Robert Young Jr. in the majority opinion. Three dissenting justices on the seven-member court thought that reducing the award would be adequate remedy for the problems with the trial. (David Eggert, “Michigan Supreme Court Overturns $21 Million Verdict Against DaimlerChrysler”, AP/Law.com, Jul. 23). More: Dawson Bell, “Harassment verdict is overturned”, Detroit Free Press, Jul. 23; Ernie the Attorney.

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Jackpot in San Diego

Drivers of the Ford Explorer have a lower fatality rate than drivers of other vehicles — and a lower fatality rate from rollovers than drivers of other SUVs. The NHTSA found that there was nothing wrong with the Explorer’s design after a spate of well-publicized accidents resulted in an investigation. Nevertheless, plaintiffs persist in filing lawsuits accusing the Explorer of being unreasonably dangerous. And one can see why: Ford has successfully defended the vehicle in at least ten consecutive jury cases, but on Wednesday a San Diego jury rewarded the latest roll of the dice with a $122.6 million verdict for a paraplegic plaintiff, Benetta Buell-Wilson. Ms. Buell-Wilson was driving at a high speed on Interstate 8, when the RV in front of her lost a large piece of metal; she lost control of the SUV when she swerved, and the vehicle went off the highway and flipped 4 times before landing on the roof. The jury returns today to deliberate the question of punitive damages. (Ray Huard, “$123 million awarded in SUV rollover”, San Diego Union-Tribune, Jun. 3; Myron Levin, “Jury Orders Ford to Pay $122.6 Million”, LA Times, Jun. 3) (via Bashman). “This was an extremely severe crash, and any SUV would have reacted in the same way under similar circumstances,” Ford spokeswoman Kathleen Vokes said. “Our concern goes out to Ms. Buell-Wilson and her family, but this tragic accident was caused by a combination of high speed and a large metal obstruction in the road.” (“Verdict ends Ford streak”, Detroit News, Jun. 3). Ford says it will appeal; the jury awarded four times more than what plaintiffs asked for.

Update: Jury awards $246 million in punitive damages. Ford protests that it wasn’t allowed to introduce evidence to the jury comparing the safety record of the Explorer to other SUVs. (Reuters, Jun. 3; Myron Levin, “Jury Adds Punitive Award in Ford Case”, LA Times, Jun. 4).

Update: Judge reduces damages to $150 million; Ford has appealed. (Michelle Morgante, AP, Aug. 19; Nora Lockwood Tooher, “Explorer Rollover Yields $368.6 Million Verdict”, Lawyers Weekly USA, Dec. 30).

As with all my posts, I speak for myself and not my firm or any of my firm’s clients (which include Ford).

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Automakers now in asbestos gunsights

Lawsuits have been filed for years blaming automakers for exposure to asbestos found in brake pads and other auto parts, but the volume of such litigation appears to be sharply increasing. Between February 2002 and February 2003 the number of cases filed against Ford nearly doubled, from 25,000 to 41,500. “In a filing with the SEC, Ford said that it is facing a rise in lawsuits as the original manufacturers of the components have gone bankrupt over the past several years. Ford’s report said, ‘In most asbestos litigation, we are not the sole defendant. We believe we are being more aggressively targeted in asbestos suits because many previously targeted companies have filed for bankruptcy.'” (Robert Lane, “Asbestos Suits Costing Ford As Others Go Broke”, Blue Oval News, Apr. 14; Ed Garsten, “Automakers see asbestos lawsuits rise”, Detroit News, Mar. 21).

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Sudden acceleration: litigation springs eternal

Fifteen years after the National Highway Traffic Safety Administration concluded that the explanation for supposed “sudden acceleration” in cars was that the drivers were mistakenly pressing the accelerator rather than the brake, trial lawyers continue to sue automakers, and now NHTSA has agreed to open an investigation into claims of unintended acceleration in Toyota and Lexus models. While an earlier wave of suits tended to blame cruise control malfunctions, the new favorite culprit is electronic throttle control systems. In lawsuits over the accidents, the car’s brakes, which can ordinarily bring a car to a stop even when its throttle is fully open, will typically be said to have mysteriously failed as the same time as the acceleration defect was manifesting itself, although nothing will be found physically wrong with the brakes afterward.

“For more than a decade, decisions usually favored car companies and blamed drivers in unintended acceleration cases, but some recent trials and court decisions reversed that. Ford Motor and General Motors each recently lost a high-profile case. … A Missouri jury last year ordered GM to pay Constance Peters and her husband $80 million for the crash of her 1993 Oldsmobile Cutlass, which accelerated 120 feet in reverse and into a tree while she was backing up. They blamed faulty cruise control. GM is appealing.” And: “The U.S. Circuit Court of Appeals in New York in 2002 reinstated a $1.1 million judgment against Ford in the crash of a 1991 Ford Aerostar. Jurors had found that the crash was caused partly by a ‘negligently designed’ cruise control system.” (Jayne O’Donnell and David Kiley, “Technology puts unintended acceleration back in spotlight”, USA Today/Detroit News, Apr. 13)(via Reason Hit and Run). For more on the issue, see Jun. 6, 2000.

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“The Great Car-Rental Wipeout”

William Tucker, writing in the New York Sun (Apr. 1), explores the ruinous consequences of the state’s vicarious-liability law for independent car rental agencies (via Spartacus). See our piece of last Jun. 9 as well as Jul. 14 and links from there. More: Chrysler has now joined GM and Ford in refusing to lease in New York, while Honda has resumed offering leases, but at special high prices intended to compensate for the state law. (“Chrysler to stop leasing in New York”, Bloomberg/Detroit Free Press, Mar. 26)

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Mom sues daughter over driveway mishap

The Michigan Court of Appeals has ruled that Carla Allen of Warren is not entitled to collect damages from her daughter for failing to maintain her property in a safe condition. Mrs. Allen tripped and fell “on a raised slab of concrete on her daughter?s driveway”. The “court ruled that when an average person with ordinary intelligence can discover a danger on casual inspection, as the mother could in this case, he or she cannot blame someone else for injuries.” The editorialists at the Detroit News say the case “speaks volumes about the absurd state of the U.S. judicial system” and suggests the need for more frequent sanctions. (“Fine Filers of Frivolous Lawsuits” (editorial), Detroit News, Feb. 24)

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Juries not rolling over for Explorer suits

To judge from some of the press coverage, you’d think the Ford Explorer was the most sinister passenger vehicle in human history. And yet “Ford Motor Co. successfully has defended the popular sport utility vehicle in 10 consecutive jury trials.” On the other hand, the automaker has paid millions of dollars to settle Explorer cases: perhaps 1,500 of them, according to an estimate proffered by one California plaintiff’s lawyer. Ford won’t give out numbers. (“Explorer verdicts go Ford’s way”, Detroit News, Jan. 26)(see also Jan. 8).

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Not with an Explorer, you don’t

“U-Haul International Inc. is forbidding its stores to rent trailers to customers who plan to tow with the Ford Explorer, saying it no longer can afford to defend product liability lawsuits linked to the best-selling SUV. … U-Haul — North America?s largest trailer rental company with more than 17,000 outlets — implemented the policy Dec. 22, saying the ban was not related to safety. ‘U-Haul has chosen not to rent behind this tow vehicle based on our history of excessive costs in defending lawsuits involving Ford Explorer towing combinations,’ the company told The Detroit News. … U-Haul has no ban on rentals to Mercury Mountaineer owners, although the vehicle is mechanically a carbon copy of the Explorer.” (Eric Mayne, “U-Haul rejects Explorers”, Detroit News, Jan. 8)(& letter to the editor, Mar. 18).

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Detroit News on gun design

Two weeks ago the once-great Detroit News (oh, how we miss its pre-Gannett days) published a “Special Report” entitled “Flawed guns: America unprotected” (Dec. 14-16) which recycles the plaintiffs’ allegations in seemingly every extant “design defect” case against the firearms industry. Matthew Hunter (“Trigger Finger”) has now posted a ten-part rebuttal (first entry). One of Hunter’s themes: many of the design features portrayed as “defects” in the News series are in fact sought out knowingly by many sophisticated gun buyers, as with Glock’s deliberate omission of a manual safety on its extremely popular police gun.

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