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MAY 2 017 Distributed to over 40,000 subscribers each month BeasleyAllen.com I. 2 nd U.S. Circuit Court of Appeals that should hope to break. Each recall notice General Motors remains responsible for means hundreds, thousand or millions of CAPITOL injury, death, and diminished-value claims people have been put at risk of serious OBSERVATIONS that occurred before its 2009 bankruptcy. injury or death. No example better high- The lower court found that GM was still lights the potential risk than the Takata responsible for the older claims because it airbag recall, which has identified 46 knew about the ignition switch defect for million airbag inflators for repair and THE ATLANta OFFICE more than a decade but concealed it from affected approximately 29 million the bankruptcy court and its customers. vehicles. We opened our Atlanta office in January nd GM appealed the 2 Circuit Court’s The National Highway Traffic Safety of this year and things have gone very ruling and contended that “well-estab- Administration (NHTSA) estimates only well. We should have made this move lished bankruptcy law allowed the newly about 13.6 million of the 46 million defec- years ago. Nevertheless, we are glad to be reorganized GM to obtain the old compa- tive airbags have been repaired, leaving there now and to be a part of the Georgia ny’s assets ‘free and clear’ of liabilities.” millions driving cars with a defective air- legal community. Chris Glover will head GM began recalling about 2.6 million vehi- bag—a product meant to protect drivers’ up the office and Navan Ward will also be cles in 2014 over the deadly defect, which lives—that could literally explode in their there on a permanent basis. Gibson Vance, allowed the ignition to be jostled into the faces during an accident if it is exposed to Parker Miller and LaBarron Boone have off or accessory position with the vehicle high temperatures or humidity. The recall also spent a great deal of time in the in motion, causing it to lose power steer- Atlanta area. Our plan is to expand the ing, speed, anti-lock brakes, and airbag office as things progress. protection. These faulty ignition switches IN THIS ISSUE Since moving to Atlanta, Chris Glover caused hundreds of GM cars to crash. The has been actively exploring the area, I. Capitol Observations ...............2 GM ignition switch defect has been liked making new connections and building to 124 deaths and 275 injuries. The auto- relationships in the legal community. II. More Automobile News Of Note .......2 maker has already paid about $2 billion to Recently, Chris was asked to serve on the settle civil complaints and criminal Georgia Trial Lawyers Association (GTLA) III. Purely Political News & Views ........5 charges in connection to the ignition Executive Committee. The GTLA is the switch debacle. IV. Court Watch ......................5 only association in Georgia committed nd The 2 Circuit’s ruling reversed a ruling exclusively to serving the needs of plain- by a U.S. bankruptcy judge in 2015, who V. The Corporate World ...............6 tiffs’ lawyers. drew a line between the liabilities of the The executive committee is the govern- pre-bankruptcy “Old GM” and the post- VI. Whistleblower Litigation ............8 ing body of the GTLA, which meets bankruptcy “New GM.” This effectively monthly. Chris will have a vote in issues VII. Product Liability Update ...........10 shielded the “New GM” from any claims affecting the GTLA membership and also involving vehicles and accidents before its has been asked to oversee the GTLA VIII. Mass Torts Update ................12 June 2009 bankruptcy. The Supreme Public Relations/Communications Court’s refusal to hear GM’s appeal is most Committee. IX. Business Litigation ................16 significant. GM will face at least 1,000 We really look forward to working with additional lawsuits. lawyers in Georgia on matters of mutual X. Insurance and Finance Update ......16 Beasley Allen and The Cooper Firm rep- interests. Having Lance Cooper with us in resented individuals and families through- XI. Employment and FLSA Litigation .....17 Georgia is very important. We have been out the country who were harmed by the working with Lance on product liability ignition switch defects in GM vehicles. XII. Premises Liability Update ...........17 cases for years. We, working with Lance Cooper, settled a large number of cases with GM last year. XIII. Workplace Hazards ...............18 Our lawyers welcome the opportunity to XIV. Transportation ...................20 II. work with lawyers on any GM ignition switch cases. For more information about XV. Environmental Concerns ...........21 MORE how this recent ruling may affect claims, AUTOMOBILE contact Beasley Allen lawyer Dana XVI. An Update On Class Action Litigation ..24 Taunton at 800-898-2034 or by email at NEWS OF NOTE [email protected]. XVII. The Consumer Corner .............27 Sources: Bloomberg, Associated Press and Law360. com XVIII. Recalls Update ...................30 GM’S BID TO BLOCK IGNITION-SWITCH SUITS REJECTED BY U.S. SUPREME COUrt XIX. Firm Activities ...................36 AUtomaKERS INStaLLED DEFECTIVE TAKata GM has lost its bid to bar hundreds of XX. Special Recognitions ..............37 AIrbagS WITH KNOWLEDGE OF DEFECTS ignition-switch lawsuits when the U.S. XXI. Favorite Bible Verses ..............37 Supreme Court refused to hear the auto- Last year automakers recalled 53.2 maker’s appeal claiming it isn’t liable for million vehicles in the United States. It is a XXII. Closing Observations ..............38 pre-bankruptcy filings. The Supreme record that has been broken annually Court left intact last year’s ruling by the since 2014, though it’s not exactly one we XXIII. Parting Words ...................39 2 BeasleyAllen.com has been a messy one: Not enough criminal case against Takata. The auto- The settlement called for the creation of replacement parts exist to fix all the previ- maker agreed earlier this year to refund the restitution funds, and also required ously affected cars. But what about new $975 million and pay a $25 million crimi- Takata to improve its compliance program cars? You would think a recall on Takata nal penalty as part of a settlement with and to appoint an independent monitor airbags would mean they were no longer the U.S. Department of Justice (DOJ). who will report to the DOJ for three years installed in vehicles coming off the assem- Judge Steeh wrote in his order that after about Takata’s compliance with legal and bly line—but you would be wrong. conducting “exhaustive research” and ethical obligations. A little more than a Defective airbags linked to the largest “meeting with three potential candidates,” year ago, NHTSA levied a $200 million consumer recall in history were still being he selected Mueller—a former FBI director fine on Takata—its largest ever—in a deal placed in new cars long after their dangers and former U.S. attorney—to serve as in which the company admitted that it became apparent. That was because some special master for the restitution fund. failed to tell the agency about the defect had yet to be recalled and so they could Judge Steeh said that Mueller’s back- even though it knew about it and held still technically be installed. A June 2016 ground suggests he is “uniquely qualified” important information. NBC News piece reported automakers Fiat to oversee the settlement fund. The NHTSA estimated at the time that the Chrysler, Mitsubishi, Toyota, Daimler court’s order states: exploding inflators had caused about 98 Vans, Ferrari, Mercedes-Benz and Volk- injuries. A sprawling multidistrict litiga- swagen were at some point knowingly The court determines that Mr. tion involving injured victims and people using defective Takata airbags that had not Mueller is the best candidate for the whose car values have decreased is been equipped with desiccant, a chemical position, based in part on the pending in a Florida federal court. Takata designed to reduce moisture, in new cars. parties’ support of his appointment, is one of the defendants. The case is U.S. v. People bought cars not realizing they as well as the court’s comfort and Takata Corp. (case number 2:16-cr-20810) would soon be recalled—and the manu- trust in his impeccable credentials, in the U.S. District Court for the Eastern facturers knew the parts they were install- his relevant experience in settlement District of Michigan. negotiations, his familiarity with ing had been linked to people’s deaths. It Source: Law360.com seems like a far cry from trying to protect the automotive industry in general, consumers. and based upon his well-known rep- To make matters worse, a shortage of utation for integrity. VOLKSWagEN AGREES TO $157 MILLION replacement parts not only means Ameri- Mueller and his team will be in charge SETTLEMENT OVER StatES’ EMISSIONS CLAIMS cans continue to travel with defective of determining what entities and individu- airbags, but last year federal regulators als should be paid out, and in what Volkswagen AG, Audi AG and Porsche approved installing defective Takata infla- amounts, from two separate funds — AG ey have agreed to pay a total of about tors as replacements for older airbags in $850 million for automakers, and $125 $157.45 million in penalties to 10 states to about 2.1 million recalled vehicles. million for individual consumers. Judge resolve environmental claims stemming “Federal regulators have approved (the) Steeh wrote that Takata must pay the $850 from the companies’ emissions cheating move as a temporary measure due to a million within five days of its sale or scandal, as well as some consumer claims shortage of replacement parts using merger, which must occur by Febru- that weren’t covered in a prior settlement.

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