
One reason why the economy is hurting, is the "death of a thousand cuts" from lawsuits
such as these.
On Jan 19, 2002, Ms. Benetta Buell-Wilson was driving her 1997 Explorer west on I-8 near Tavern Road in Alpine, just east of San Diego, at a "high rate of speed". A large piece of metal dropped out of an RV in front of her and she swerved to avoid it. As a result, she lost control and her vehicle rolled over four times and the roof was crushed. Ms. Buell-Wilson was paralyzed as a result.
In 2004, she and her attorneys
sued Ford Motor Company alleging that the Ford Explorer's roof was too weak and that the vehicle was prone to rollovers. It's possible they were emboldened by an earlier
2000 scandal involving Firestone tires on Ford vehicles which led to blowouts and rollovers, even though this case was entirely unrelated, and the National Highway & Traffic Safety Administration vindicated Ford in their investigation. Ms. Buell-Wilson and her attorneys initially won a whopping verdict of $368 million ($122 mil for her, of which only $5 mil was for medical care, plus $246 mil in punitive damages). The award was later slashed by several judges, and now stands at "only" $82.6 million. Ford says it is going to appeal yet again, and they complain that they weren't allowed to introduce evidence about the Explorer's overall safety record.
Simply put, a verdict of $82.6 million dollars against Ford Motor Company is an $82.6 million dollar blow to the economy. True, the money is redistributed rather than being taken out, but the effect is that, based on the standard 60-40 split, one woman collects $49.6 million, while her attorney(s) collect $33 million. To put it crudely,
it's enough money that neither they, nor their children or grandchildren will ever have to work again a day in their lives. So while a few get rich, thousands of ordinary consumers, workers, and or shareholders become poorer.
Ford doesn't have money trees where they can just grow the cash. To pay for this lawsuit, they will either have to make cuts (resulting in people losing their jobs) or raise prices (resulting in ordinary people paying more). If they have insurance, they can use that (resulting in higher premiums). Making it up by trying to increase sales is not really an option, since the company is already in the business of trying to increase sales as much as possible. True, $82.6 million is a very tiny drop in the bucket compared to their $173.9 billion in sales last year. But the fact remains that it's still a lot of money, and it will still have to come from somewhere.
But did the plaintiffs deserve it? In reading about this case, I'm puzzled why Ford was blamed but not the driver of the RV, or the RV manufacturer. Certainly, neither of them have pockets as deep as Ford, and it's possible that they haven't been identified. But it still seems patently unfair, since one or the other of them are at least, if not more so responsible for the crash that resulted. So is Ms. Buell-Wilson's "high rate of speed" - this was apparently over the speed limit, although I can't find any reference that tells us just how high that was.
Not surprisingly trial attorneys universally support verdicts like this (since it's a lucrative business).
The "California Injury Blog", by law firm Bisnar & Chase, describes it thus:We’re very pleased this victim, after more than a decade of fighting with Ford’s high-powered legal team, finally received the compensation she deserves and probably needs for her own and her family’s future. Our firm has represented numerous people who have been victims of Ford SUV rollover accidents and the roof crush that results because of the auto maker’s ineffective vehicle and roof design.
Our firm and other law firms have obtained documents and internal memos, which clearly show that Ford has known about its SUV defects for years and has yet done nothing to improve the design or enhance public safety in spite of marketing the Explorer as a “safe vehicle for the family.” It’s interesting to note that all it takes is $30 per vehicle to get the roof strength up to a better standard. But Ford has deliberately chosen to put profits over people. Is one life not proof enough? Is a life not worth even $30?
Buell-Wilson could’ve lived a better, fuller life had Ford opted to make a safer vehicle rather than beef up its bottom-line. Sure, the flimsy roofs comply with federal safety standards, but those standards are extremely inadequate and have not been updated for more than 35 years. And no one knows those facts better than the guys upstairs at Ford Motor Company.
I'm leery of whether $30 in roof-strengthening really would have adequately protected her. But, for the sake of argument, let's say it would have. What happens when the next accident could have been prevented with $300 in roof supports. And then $3000? Where do you stop? Not to mention the fact that the more you increase safety supports in a vehicle, the more you increase the weight and worsen the gas mileage and emissions. In fact, automakers are often sued over this issue as well.
The law firm's dismissive statement against Federal regulations is interesting as well, for that is the weakest part of this lawsuit; an automaker is actually being punished for making vehicles that comply with federal standards! So what if the standards have not changed in 35 years? Has the force of a rollover somehow changed in that time period?
If you believe that the standards need to be changed then let's get Congress to do it. A single court in California (made up of a small jury and judges who are likely non-experts on vehicle engineering) is not the right place to decide safety standards for the entire nation.
I have tremendous sympathy for Mr. Buell-Wilson, who is unable to lead a normal life again. I just don't believe, as it stands, justice has been done in this case. Additionally, if she had not tried to collect such an astronomical amount (or tried to collect from the RV owner or his insurance company) she may already have the money to pay for her long-term care. As it is now, she has already waited six years, and may have to wait longer as Ford appeals again. If they win, she may get nothing at all.
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