CARMAKER ARGUES FINANCIAL WOES TO REDUCE PUNITIVES
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Published on
Thu, Apr 19, 2007
By:
The LACar Editorial Staff
CARMAKER
ARGUES FINANCIAL WOES TO REDUCE PUNITIVES
JURORS
AWARD ONLY $42,500 IN PUNITIVES IN $10.6 MILLION SUV ROLLOVER CASE
(Middlesex County, New Jersey) - Ford Motor Co. may have been spared a
monster punitive damages verdict in an SUV rollover case because its lawyer was
allowed to tell jurors about the carmaker's dire financial straits and mass
layoffs, according to Charles Toutant of the New Jersey Law Journal. "The
Middlesex County, N.J., jury on Wednesday awarded only $42,500 in punitives,
despite having found Ford liable for $10.6 million in compensatory damages to a
paralyzed driver," says Toutant.
Ford lawyer Thomas Hinchey of Campbell, Campbell, Edwards & Conroy in Woodbury,
N.J., referred to the automaker's recent mass layoffs and losses in its argument
to keep punitive damages down. Ford reported a 2006 full-year net loss of $12.7
billion, and in January the automaker announced plans to eliminate 25,000 to
30,000 jobs in North America and close 14 plants by 2012. Superior Court Judge
Jamie Happas overruled objections by the plaintiff's lawyer, Barry Eichen, of
Eichen Levinson in Edison, N.J.
The suit claimed that the 2000 accident was caused by a defective throttle
design in the 1997 Ford Explorer that made its accelerator stick. "When
plaintiff Rebekah Zakrocki, then 21, pressed hard on the gas while driving on
the Garden State Parkway, the vehicle lurched forward," according to the NJLJ
report. "Panicked, she turned the wheel to the left, causing the vehicle to
roll onto its roof." The suit also charged that the design of the vehicle's
suspension, brakes and high center-of-gravity gave it a heightened propensity to
roll over.
Ford reportedly still plans to appeal the verdict.