Articles Posted in Products Liability

For more than a week we have been learning details of what may be one of the biggest recalls in automotive history. The potential car accidents linked to it are especially scary because the recall is focused on one of the most basic safety features of modern automobiles: the airbags.

As the Associated Press reported earlier today, a recall of cars with airbags made by Takata, a Japan-based supplier of parts to numerous car companies, is now thought to effect “more than 12 million cars… (including) dozens of models made by BMW, Chrysler, Ford, General Motors, Mazda, Honda, Mitsubishi, Nissan, Subaru and Toyota dating to the 2001 model year.” As a result of the recall order AP reports that AutoNation, the nationwide chain that is the country’s largest car dealer, says it will stop selling the affected makes and models. The company’s CEO also went on record criticizing the car manufacturers “confusing and incoherent” handling of the situation.

As the news agency reports, the Takata-made airbags “can inflate with too much force, blowing apart metal canisters and sending shards flying at drivers and passengers. Safety advocates say that four people have died due to the problem.” The article goes on to note that “government investigators believe that prolonged exposure to moisture in the air makes the air bag inflator chemicals burn too fast, creating too much pressure.”

An article published in Friday’s New York Times brings the issue of General Motors and its massive recalls sharply back into focus. It tells the story of a 27-year-old Virginia woman who died in a car crash only days after receiving a recall notice on her 2006 Saturn. That notice concerned the ignition switch issue that has received so much media attention this year. It is also noteworthy that it was the third issue for which her car had been recalled. It is useful to be reminded that the GM recall story is far from over – but several details buried deep inside the article are points of special concern.

The victim in the crash highlighted by the article died earlier this year. That fact is significant, because even though the defects in GM cars stretch back many years the fatal crashes associated with them have been seen by most people as something that happened several years ago and is only now traceable to the company’s negligence. The article notes that as of this week the mediator administering a fund to compensate victims “had determined that 21 deaths were eligible, raising GM’s longstanding death tally of 13 by more than 50 percent.”

Equally disturbing (though, admittedly, not a new development for anyone who has followed this issue closely) is the paper’s reporting that “during months of outcry over GM’s handling of the (ignition) switch issue, as investigations and lawsuits mounted, the company has fought any effort to get the recalled cars off the road until they are repaired… To date, hundreds of thousands of cars remain on the road, and the automaker continues to maintain that they are safe.”

On Friday General Motors announced yet another expansion of the widening recall of its small cars. According to the New York Times, the company “is expanding its ignition-switch recall to include an additional 971,000 small cars worldwide, including 824,000 in the United States, that may have been previously repaired with defective switches.”

As I noted in a post earlier this month, well before today’s announcement GM had already recalled more than a million cars built since the 2003 model year because of a defect that may lead the ignition switch to cut off. That, in turn, could mean that air bags fail to deploy in the event of a crash. As the latest developments indicate it is now clear that many cars had the faulty switches added to them when they went in for repairs.

More disturbing, however, are the continuing revelations about the way in which GM has handled this scandal. In a move that may yet lead to wrongful death lawsuits, company documents have shown that GM misled grieving families for years, telling those who had lost loved-one in crashes linked to the flaw “that it did not have enough evidence of any defect in their cars, interviews letters and legal documents show.” This happened even as the company was internally debating the best way to fix the problem, the newspaper reports.

Yesterday’s announcement that Toyota has reached a settlement with the Justice Department was striking on several accounts. First there is the settlement’s sheer size. “Toyota will pay a $1.2 billion penalty to settle the criminal probe into its handling of unintended acceleration problems that led to recalls of 8.1 million vehicles beginning in 2009,” according to an account in USA Today.

The paper adds: “the federal criminal probe… was independent of federal safety regulator and congressional probes of the Toyota sudden-acceleration recalls. It looked at whether Toyota provided false or incomplete statements to the National Highway Transportation Safety Administration in the events leading to recalls for floor mats that could trap gas pedals and gas pedals that could stick… Toyota already paid two federal fines of $16.375 million in 2010 for delays in reporting the floor mat and pedal defects, and another $17.35 million in 2012 related to an additional mat recall.”

As the paper goes on to report, the problem first came to public attention in 2009 “with a rash of runaway car reports.” Five deaths have been directly linked to the problem, but the larger issue – and the one that Toyota must continue to deal with – is evidence that the company knew about these problems but covered them up.

A disturbing article published this week in the New York Times outlines a series of failures by both corporate America and the federal government. Its focus is General Motors’ recent recall notices involving well over a million vehicles manufactured since the 2003 model year (click here for GM’s latest news release with full details of models and years effected). The vehicles have a defect in the air bag system that in some instances means the air bags will not deploy during a crash because the ignition switch has been cut off.

According to the Times, GM now acknowledges that at least 13 deaths can be tied to the defect. What is disturbing is the paper’s report that the automaker’s engineers were aware of the issue in 2004 – more than a year before the first of those 13 documented deaths. Equally bad is the record of federal regulators from the National Highway Traffic Safety Administration. According to the paper, “after two of the (Chevy) Cobalt crashes, the regulators took a close look at the cause, each time raising the possibility of a defect. They also met with GM about the issue. But despite the red flags, they never opened a broader investigation into whether the car was defective.”

As the paper goes on to report, a number of lawsuits related to the documented deaths have already made their way through the court system. Class action law was created precisely to enable ordinary Americans to defend their rights in cases of this sort of willful and negligent misconduct, especially when it results in wrongful deaths. The recall notices are still new and are still sinking in for many people (the initial recall was issued on February 19 and was later extended to hundreds of thousands of other vehicles) so it is also important to note that the full impact of the situation is not yet clear. It is clear that the court system will probably hear much more about these vehicles in the months and years to come.

With barely two weeks to go until election day voters in Washington won a victory this week even before they go to the polls to decide the fate of Initiative 522. According to an article published Friday in The Oregonian a major opponent of the GMO-labeling initiative bowed to pressure from the Washington State attorney general and agreed to disclose the names and contributions of major donors to an anti-522 campaign.

Washington State Initiative 522 would require the labeling of foods produced using genetically modified organisms, also known as GMOs. A similar ballot initiative in California failed in 2012 after a strong ‘vote no’ campaign funded by the food industry. With Washington voters scheduled to go to the polls on November 5 the Grocery Manufacturers Association, a trade group, “agreed to make public a long list of donors to its anti-labeling campaign after being sued this week by Washington Attorney General Bob Ferguson. He charged that the Association violated the state’s disclosure laws by setting up an internal fund that solicited money from its members to fight the initiative,” the newspaper reports.

According to The Oregonian, the GMA has put over $7 million into the anti-522 campaign, with almost half of that coming just from Coca-Cola, Pepsi and Nestle.

Relatives of a Bend man who died in 2010 while using an inversion therapy table have filed a lawsuit in federal court in Eugene against the Washington-based manufacturer of the table, according to a recent article in The Oregonian.

According to the newspaper, the lawsuit alleges that the 64-year-old Oregon man “was using the table when he became trapped in the inverted position and was unable to return to the upright position or to remove himself from the machine.” The manufacturer “promotes the product on TV and online as a way to relieve back pain, improve joint health and build muscle tone,” the paper reports.

The Oregonian cites a representative from the Oregon Medical Examiner’s Office reporting that the man died from asphyxia. The coroner ruled the death accidental, but this suit raises important product safety issues. The suit alleges that the victim was unable to get himself back into the upright position despite “effort over a prolonged period” to do so.

An Associated Press story published yesterday on The Oregonian’s website should grab the attention of many Oregon motorists concerned about both Oregon traffic safety and Oregon defective products issues. According to the news agency, the federal government’s National Highway Traffic Safety Administration “says it will investigate problems with stalling or surging engines in nearly 725,000 Ford cars and SUVs.”

According to the article the investigation covers 2009, 2010 and 2011 models and applies to the following vehicles:

➢ Ford Escape SUV

The Oregonian noted this afternoon that the FBI is asking people across the United States to contact it regarding illnesses traceable to tainted peanuts.

The case began in 2009 with an investigation by the Food and Drug Administration which found a Georgia plant run by Peanut Corporation of America (PCA) to be “filthy, with dead rodents and droppings, and that the company sold tainted products and sometimes had them retested after a positive salmonella test,” the newspaper reports. The FBI statement comes one day after four top executives from Peanut Corporation of America were indicted on federal conspiracy, wire fraud and obstruction of justice charges, a legal move that goes far beyond what is normal in federal cases of this type.

The FBI statement (see link below) asks victims of the tainted food to fill out a confidential form so that they can be kept notified of developments in the case. The newspaper notes that in a highly unusual move, “the ad does not limit itself to patients, either. It asks anyone affected by the outbreak – which could include the hundreds of companies that recalled products – to respond.” According to the newspaper’s report, 700 people, including 15 here in Oregon, became ill after eating tainted products traced to the factory. Among those sickened, nine deaths were also reported.

An article published this week in the online magazine Slate makes a compelling case that the Consumer Product Safety Commission, an organization many of us think of as an important guardian of Americans’ safety and rights, could do a lot more to make its own workings transparent.

The article begins with a simple example: “Sometime before October 2011, an unknown child was injured by an unknown product that was produced by an unknown manufacturer. The Consumer Product Safety Commission published a report of the injury in its online database of safety complaints.” It also notes that the unnamed company has so far been able to contest what it views as inaccurate charges that its product is unsafe by filing a secret lawsuit against the CPSC, all the while keeping its name, its product and the allegations against it from being identified in the CPSC database.

Perhaps even more shocking is the revelation that when a federal court in Maryland allowed the secret suit to go forward, accepting the company’s argument that letting people know it was being sued might be bad for business, the government opted not to appeal that decision. According to Slate three consumer-advocate groups have since then been “granted permission to intervene by the court in October (and) are pressing on” with the appeal that the federal government refused to lodge.

50 SW Pine St 3rd Floor Portland, OR 97204 Telephone: (503) 226-3844 Fax: (503) 943-6670 Email: matthew@mdkaplanlaw.com
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