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Record $4.9 billion award against GM for dangerous fuel tanks
July 9, 1999 LOS ANGELES (CNN) -- A superior court jury Friday awarded more than $4.9 billion to six burn victims who were permanently disfigured when the GM car they were in burst into flames after being rear-ended -- the highest award ever in a product-liability lawsuit. The award includes $107 million in compensatory damages and $4.8 billion in punitive damages. Tom Harrison, publisher of Lawyers Weekly USA, said the GM award is the largest personal injury verdict in the nation's history, and he predicted it will stand on appeal. The jury found that General Motors Corp. -- as a cost-cutting initiative -- chose to use a less expensive and less safe fuel tank design in the 1970s rather than more costly tanks the company had successfully designed and tested that would survive crashes at speeds as high as 60 mph to 70 mph. "They made a decision it would be cheaper to come to court to defend these lawsuits instead of making the safety improvement that was necessary," plaintiffs' attorney Brian J. Panish told reporters.
Broken leg was only non-fire related injury
The accident occurred on Christmas Eve 1993 when Patricia Anderson and her four children -- ages 6 to 15 -- were driving home from church in a 1979 Chevrolet Malibu with family friend Jo Tigner. The car was struck from behind by a drunk driver -- whose blood alcohol level was .20 -- going about 50 mph, causing a fiery explosion. He survived with minor injuries. One witness said the explosion resembled a stunt from the "A- Team," the popular 1980s TV show known for its pyrotechnics. "I just thank God that me and my kids survived," Anderson said after the verdict in the 10 week trial. "I thank him for allowing me to be an example to the public to put an end to this." Three of Anderson's four children were burned over 60 percent of their bodies. One of those three children had to have her hand amputated. Anderson, a fourth child and a family friend suffered second- and third-degree burns over a lesser percentage of their bodies. Panish said that had the car's fuel tank not exploded, the only injury the Anderson family would have suffered from the crash would have been one child's broken leg.
GM: Drunk driver to blame for injuriesDuring the trial, Panish introduced secret memos and documents -- not specifically mentioning the 1979 Malibu -- showing that in the early 1970s GM had successfully designed and tested fuel tanks that could survive high-impact collisions without exploding. In one memo, a GM engineer outlined a cost-benefit analysis that showed the company could save $1.60 to $4 per car by going with a different fuel tank -- the one that would eventually be used in its cars. GM denies those charges and plans to appeal the verdict. "The fuel system in the 1979 Chevrolet Malibu in which Ms. Anderson and her passengers were traveling is safe and met or exceeded all the requirements of Federal Motor Vehicle Safety Standard 301," GM safety spokesman Terry Rhadigan said. He blamed the family's suffering on the drunk driver. "It was a very severe crash, and we estimate the speed of the driver who struck this vehicle at 70 mph. Unfortunately they (the victims) were sitting still at a stop light," Rhadigan said. "Our sympathies go out to the people who were injured in the tragic crash, especially the small children who were burned as a result. But this crash was not GM's fault, and we are disappointed the conduct of this trial did not let the jury fairly evaluate the claims," he said in a statement.
Juror wanted message to corporate AmericaThe jury decided that the fuel tanks on the 1979 Malibu were placed too close to the rear bumper and that GM knew the design was dangerous -- and rejected a fix that would have cost less than $9 per car. Jury foreman Coleman Thornton said the panel noted that GM spent $4 billion on advertising. "We figured that if they had no regard for the people in their cars, then they should be held liable," Thornton said. Juror Pedro Martinez said the panel sent a strong message to corporate America. "If somebody is responsible for wrongdoing, they must pay for it," he said at an afternoon news conference. "Many of the (GM) witnesses, they got caught in a lie many times. Not just one of them -- but all of them." Added juror Sheila Nash: "The evidence in the case was overwhelming."
Millions of unsafe fuel tanks on roads, attorney saysPanish hailed the decision as a means for the civil judicial system to protect consumers from dangerous products and corporate greed. "Without the risk of juries holding companies accountable for their reprehensible conduct, GM and other automobile manufacturers would have little reason to put passengers' safety first," Panish said in a statement. The plaintiffs' attorneys contend an estimated 5 million vehicles with the fuel tanks placed 11 inches from the bumper are still on the road. The vehicles, the lawyers say, were models from 1979 to 1983 and include the Malibu, Oldsmobile Cutlass, Pontiac Grand Am and El Camino. Correspondent Charles Feldman and The Associated Press contributed to this report. RELATED STORIES: Feds to investigate fuel tank leaks RELATED SITES: General Motors
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