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Wreck victim awarded $14 million

A Pulaski County jury says Hyundai Motor Co. must pay over $14 million to a man who sustained permanent brain damage in a February 2010 wreck.

Keith and Vanessa Duncan sued the car manufacturer on Gage Duncan’s behalf because the driver side air bag did not deploy when the 2008 Hyundai Tiburon Gage was driving struck a tree alongside Belspring Road. He was 16 years old at the time and sustained serious damage to the frontal lobes of his brain, according to Duncan’s attorney, Ari Casper.

A mistrial was declared in the case last year when a jury was unable to reach a decision following three weeks of testimony. Almost two weeks of trial this time around did not pose a stumbling block as a three-woman, four-man jury returned a verdict in Duncan’s favor.

In its verdict, the jury found that Hyundai “breached the implied warranty of merchantability” on the Tiburon and that as a result, Gage Duncan suffered irreversible brain injuries when the bag did not deploy.

As a result, the jury ruled that Hyundai should pay $14 million in damages to cover almost $2 million in projected lost wages over Gage’s lifetime and nearly $11 million in projected future medical expenses. The company also was ordered to pay $140,000 in medical expenses incurred since the wreck.

According to a summary of evidence each side presented the jury in closing arguments, the plaintiff (Duncans) contend the driver side air bag should have deployed when the Tiburon slid driver side first into the tree, but that it did not because the sensor was improperly placed under the driver seat.

Hyundai argued that the sensor was properly placed in the car and that it had performed properly in crash tests that gave it a four-out-of-five star safety rating under Federal Motor Vehicle Safety Standards. In fact, Hyundai attorneys Tim Kirkner and Harlan Prater told the jury the vehicle was safer than required by standards at that time because side air bags weren’t a mandatory piece of equipment but Hyundai chose to put them in anyway.

According to the defense, the air bags didn’t fail to deploy because they were defective, but rather because of the angle the car impacted the tree. The plaintiff rejected Hyundai’s claim that the car was tilted up on the driver side tires at the time of the impact and that the bag was not intended to deploy in that type of collision. Even if the bag had deployed, the defense said, it would not have prevented Gage’s head from striking the area just above the driver side door.

As a result of his injuries, plaintiff evidence showed, Gage is withdrawn, has difficulty carrying on conversations, does not recognize when he is in danger and has violent outbursts that put family members and others around him in fear. They say he will be required to expend nearly $800,000 in future rehabilitative costs and an estimate $10 million in costs living in a group home where he can receive proper care and supervision.

The defense argued that plaintiff projections of lost future earnings and future medical expenses were arbitrary numbers with no basis in fact that were “created with the biggest possible numbers for the jury.” Kirkner and Prater also suggested the prognosis for Gage’s rehabilitation is better than the plaintiff contends.

“Sometimes bad things happen and there’s no one to blame,” Prater told the jury. “We believe this is one of those times.”

By MELINDA WILLIAMS

Chrysler hit with $150 million verdict in Grand Cherokee fire death

A Georgia jury found Chrysler responsible for the fiery death of a 4-year old who was burned alive in Jeep Grand Cherokee involved in a 2012 accident.

The jury found that Chrysler showed “reckless or wanton disregard for human life in the design or sale” of the Grand Cherokee’s gas tank, which federal safety regulators had argued was susceptible to leaking fuel and bursting into flames when struck from behind.

According to the suit, the Grand Cherokee had stopped on a road preparing to turn left when it was stuck from behind by a pickup truck. The victim, 4-year old Remington Walden, was in his car seat in the back seat and was trapped as the SUV burst into flames. The suit said witnesses saw him struggling to escape and screaming for help. The jury awarded $120 million for the loss of life and $30 million for pain and suffering.

The family’s attorney said that Chysler had settled previous lawsuits over the gas tanks, but that the family refused to settle in this case.

“Chrysler consciously chose to put American families at risk, and gambled that juries would not figure it out,” said the attorney, Jeb Butler. “A jury in Bainbridge, Georgia, has proved them wrong.”

Chrysler has argued the gas tanks were not defective and met federal safety rules in place at the time they were built. It also argued that in many of the fatal crashes, including the one that killed Remi Walden, the SUVs were struck with twice the force that current cars must be able to withstand.

But the jury found the pickup’s driver was only 1% responsible for the boy’s death while Chrysler was 99% responsible. Neither Remi Walden’s aunt, who was driving the Grand Cherokee, nor the driver of the pickup, were seriously injured in the accident.

Chrysler, a unit of Fiat Chrysler Automobiles (FCAM) which includes the Jeep brand, said it is disappointed in the verdict and that it is considering an appeal.

“It is unfortunate that under Georgia Law the jury was prevented from taking into account extensive data submitted to NHTSA during a three year investigation, which included more than 20 years of rear impact accident data for tens of millions of vehicles,” said the automaker.

Two years ago the National Highway Traffic Safety Administration and Chrysler clashed over the safety of the SUVs with the gas tanks. NHTSA blamed the gas tanks in at least 37 accidents that caused fires and resulted in at least 51 deaths. But Chrysler disputed that and took the unusual step of refusing to follow the agency’s demand for a recall.

The safety agency and the automaker eventually reached a settlement under which Chrysler agreed to provide trailer hitches on some of the SUVs that NHTSA wanted recalled, which it said would provide additional protection in the case of a rear-end accident. The 1999 Grand Cherokee, which was the model involved in the Walden accident, was not one of those that Chrysler was required to fix.

But the Center for Auto Safety, a public safety group, criticized that settlement, saying it did not do enough to protect the drivers of 2.7 million of the SUVs still on the road at that time. Wednesday’s jury verdict served as a “rebuke” of what amounted to a “sham recall,” according to the group’s statement.

The group had particularly harsh criticism for former NHTSA administrator David Strictland, who since the recall settlement has left the agency to go to work a Washington law firm that works for Chrysler. It called on NHTSA and DOT to reopen the gas tank investigation “closed under the influence of a former NHTSA Administrator headed for a law firm representing Chrysler.”

By Chris Isidore

CNNMoney (New York)

Huge U.S. Jury Awards in 2014 May Foretell Trouble for Carmakers

(Bloomberg) — Huge jury verdicts against companies over fatal flaws in their products made a comeback last year, which may foretell more bad news for carmakers with defective parts.

Absent for a decade, billion-dollar verdicts returned in product-defect suits in 2014. The largest was for $23.6 billion in favor of the family of a smoker who died at 36. Coming in second was one for $9 billion to a New Yorker who linked his bladder cancer to a diabetes medication.

The re-emergance of huge verdicts comes at a bad time for the auto industry. It experienced a year of almost constant recalls, congressional hearings and scores of lawsuits against companies such as General Motors Co. and the air-bag maker Takata Corp.

“People now come into the jury room really suspicious, instead of wondering is this ambulance-chasing lawyer trying to squeeze money out of a company,” said Erik Gordon, a law and business professor at the University of Michigan in Ann Arbor. “Jurors now come in expecting to hear a story of corporate wrong-doing and are being very receptive to these stories.”

The biggest awards were for punitive damages, meant to punish companies for bad conduct and not to cover actual losses. One silver lining for the companies: based on past court rulings,it’s unlikely anything close to the initial verdict amounts will ever be paid.

Of the 10 largest punitive verdicts against corporations in U.S. history, none survived post-trial trimming by judges, according to Bloomberg data. The largest, $145 billion in a Florida tobacco class-action in 2000, was tossed out entirely on appeal.

Haunting Effect

Even so, that case continues to haunt the tobacco industry, as multiple findings on the companies’ blameworthiness are being used in individual cases, including the one that produced last year’s $23.6 billion award.

After being slashed, large punitive verdicts often have lingering effects, said attorney Victor Schwartz, who represents defendants in complex lawsuits.

“It can affect their business,” Schwartz said in a phone interview. “It can affect the reputation of the company. The stock can go down.”

Some effects become permanent, he said. “No one would name any product a Pinto again,” a reference to a Ford Motor Co.’s model linked to deaths from exploding fuel tanks.

Big verdicts attract more plaintiffs and raise the ceiling for settlement talks, said Gordon, the Michigan academic.

“When it’s knocked down, the story is on page 6” he said. “It’s the initial headline that attracts the attention.”

Mark Behrens, an appellate defense attorney, said the threat of punitive damages increases the risk to the companies he represents.

Settlement Impact

“Punitive damages are used as leverage by the plaintiffs’ lawyers, both as a tool to force a settlement before trial and after a verdict to inflate the value of the settlement,” he said.

The family of Michael Johnson Sr., a Florida laborer who had smoked since his early teens, was awarded $16.9 in actual damages and $23.6 billion in punitive damages by a jury in Pensacola, Florida

The verdict was cut to $16.9 million, the same amount as the jury’s compensatory verdict. The trial judge offered Reynolds the choice of paying or getting a new trial on punitive damages. Reynolds chose the new trial.

The company doesn’t consider any of the verdict justified, said Jeff Raborn, assistant general counsel for R.J. Reynolds.

We believe the entire verdict should be set aside,’’ Raborn said in an e-mailed statement.

In the drug company case, Terrence Allen and his wife sued Takeda Pharmaceutical Co. and Eli Lilly & Co., contending he developed cancer because of their diabetes drug Actos. The jury awarded them $1.5 million in compensatory damages and $9 billion in punitive damages.

Reduced Awards

The trial judge sliced Takeda’s punitive damages to $27.7 million and Lilly’s to $9.2 million. The remaining judgment is still too high, a Takeda spokesman said in an e-mailed statement.

“We believe a damage award of any amount is not justified based on the evidence presented in this trial and have multiple grounds for appeal,” said Kenneth D. Greisman, general counsel of Takeda Pharmaceuticals U.S.A.

Lilly is also appealing.

“The evidence did not support claims that Actos caused the plaintiff’s bladder cancer,” Candace Johnson, a Lilly spokeswoman, said in an e-mail.

Switch Recalls

Amid this anti-company sentiment, GM has settled multiple death and injury claims connected to its 2014 ignition switch recalls, primarily through a program overseen by attorney Kenneth Feinberg that is an alternative to litigation.

The company still faces lawsuits throughout the U.S. by accident victims claiming product defects that aren’t part of the Feinberg process.

“The public is well aware of the poor choices GM made in the name of economy,” said Mark Lanier, who who won the $9 billion Actos verdict and represents GM accident victims. He said he’d take a GM case to a jury “right now in a heartbeat.”

The ninth-biggest verdict last year was against a car company, Hyundai Motor Co., over the deaths of two Montana teenagers, cousins Tanner and Trevor Olson, for which the families blamed a steering defect. It was the largest ever against that company.

Of a total award of $248 million, $240 million was for punitive damages.

Confidential Accord

The suit was settled on confidential terms, Jim Trainor, a Hyundai spokesman, said in an interview. The company didn’t admit any wrongdoing or concede any flaws in the vehicle, he said. John Bohyer, the Olsons’ lawyer, confirmed the settlement and declined to comment further.

The tobacco and Actos verdicts were the only ones for more than $1 billion in 2014.

The rest of the top five were against Trinity Industries for $525 million over alleged withholding of information from the U.S. over changes to its highway guardrail system; Royal Philips NV for $466.7 million in a medical- device patent-infringement suit by Masimo Corp.; and Medtronic Inc., $393.6 million in an Edwards Lifesciences Corp. heart-valve device patent case.

by Margaret Cronin Fisk

Jury awards $11 million in lawsuit over auto defect

MINNEAPOLIS – A federal jury ruled that Toyota bore most of the responsibility in a 2006 car crash that took the lives of three people, CBS Minneapolis reported. But it also placed some blame on the driver of the vehicle, who was jailed as a result but later released.

Tuesday afternoon, the jury awarded Koua Fong Lee and the families involved in the accident $11.44 million from Toyota in a lawsuit filed in U.S. District Court in Minneapolis.

Jurors decided that the company was 60 percent to blame for the wreck, but that Lee, who has long insisted he tried to slow his car before it slammed into another vehicle, was 40 percent to blame. The wreck also seriously injured two people.

Lee was driving a 1996 Camry when it slammed into another vehicle at a high speed after he exited Interstate 94 in St. Paul, Minn. He says he tried to brake, but the car wouldn’t slow; while Toyota argued there was no design defect and Lee was negligent.

Javis Trice Adams, 33, and his 10-year-old son, Javis Adams Jr., died in the 2006 accident. Adams’ 6-year-old niece, Devyn Bolton, was paralyzed from the neck down and died shortly after Lee was convicted. Two others were badly hurt.

Lee was convicted of vehicular homicide and sentenced to prison for the wreck. He won a new trial after reports surfaced about sudden acceleration in some Toyotas, and questions were raised about the adequacy of his defense.

Prosecutors opted against a retrial and he went free after spending 2 1⁄2 years behind bars. Lee and his relatives, along with other people who were injured or lost loved ones in the crash, later sued Toyota.

During the trial, Lee’s attorney, Robert Hilliard, told jurors that there was a defect in the car’s design. He said the Camry’s auto-drive assembly could stick, and when tapped or pushed while stuck, it could stick again at a higher speed.

Hilliard also accused Toyota of never conducting reliability tests on nylon resin pulleys that could be damaged under heat and cause the throttle to stick.

“This is what makes the car go. This is what turns it into a torpedo, a missile, a deadly weapon,” Hilliard said during his closing argument.

Toyota said there was no defect in the design of the 1996 Camry, and that Lee was negligent. The company’s attorney, David Graves, suggested that Lee was an inexperienced driver and mistook the gas pedal for the brake, and that’s why the car accelerated.

Toyota also noted that Lee’s car was never subject to the recalls of later-model Toyotas. Jurors were asked to decide whether there was a defect in the design of the 1996 Camry that was unreasonably dangerous, and if so, whether that defect caused the plaintiffs’ injuries.

In a statement released shortly after the verdict came out, Toyota maintained that it was not at fault in the accident.

“We sympathize with anyone in an accident involving one of our vehicles, including the Trice, Adams and Lee families,” according to the statement. “While we respect the jury’s decision, we believe the evidence clearly demonstrated that Mr. Lee’s 1996 Camry was not the cause of this unfortunate accident. We will study the record and carefully consider our legal options going forward.”

CBS/AP

Roanoke jury awards $20 million in Sports Car Accident

By Laurence Hammack

A Roanoke jury has awarded $20 million to a woman who was paralyzed from the chest down when her sports car overturned in a freak accident on a country road.

The product liability verdict against Mazda Motor Corp. is believed to be the largest of its kind in Roanoke Circuit Court, at least in recent history.

Shannon Walters, 35, testified during the trial that she was forced to swerve to the left to avoid a plastic swimming pool that slipped from the bed of a pickup truck that was traveling in front of the Mazda Miata she was driving.

The largely deflated pool was airborne in the darkness at the time Walters made a split-second decision to veer off the road.

The truck did not stop, and its driver was never located after the June 2006 accident on Virginia 619 in Bedford County.

A lawsuit later asserted that Walters’ 1995 Miata

convertible was defectively designed in a way that caused the windshield to collapse after the car flipped and came to a rest on its roof.

At the time, the canvas top on the convertible was closed, and Walters was not speeding or driving recklessly in any way, according to her lawsuit.

Because of the “unreasonably dangerous” design of the car, a latch system that was supposed to hold the windshield to the convertible top failed when the car came to a rest upside down, the lawsuit alleged.

The windshield then collapsed onto Walters, leaving her with serious injuries and confining her to a wheelchair for the rest of her life, the jury was told.

After a trial that spanned two weeks, the jury reached its decision Wednesday night. Walters’ attorneys, John Lichtenstein and Brent Brown, released the following statement on Thursday:

“This jury worked very hard and closely considered seven days of evidence. In the end, their verdict placed legal accountability on those they unanimously determined were responsible for Ms. Walter’s devastating injuries.”

A spokesman for Mazda said Thursday that the company maintains it did nothing wrong and is considering an appeal.

“Our primary defense was that there is no defect,” Eric Booth wrote in an emailed statement.

“While Mazda has great sympathy for the injuries suffered by Mrs. Walters, and values the safety of all occupants of its vehicles, Mazda does not agree that the plaintiff presented sufficient evidence to support her allegation of defect.”

In a severe rollover accident involving a car with a soft top, “no reasonable person could expect a convertible to prevent injury in such a crash,” the statement read.

According to Walters’ lawsuit, she suffered severe physical, mental and emotional injuries and will require constant care for the rest of her life.

“She has a great spirit, and is as active as she can be,” Lichtenstein said.

Not only did the jury award the full $20 million sought by Walters’ lawyers, it also ordered that interest on the sum be paid from the date of the accident.

Assuming the verdict survives post-trial challenges, that would put the total amount at close to $30 million.

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