MARCH 2 017 Distributed to over 40,000 subscribers each month BeasleyAllen.com I. As a result of the cab guard litigation Generation One car owners have an handled by our firm, two of the compa- option of a buy back is due to VW admit- CAPITOL nies making the cab guards have made sig- ting they are not able to “fix” the Genera- OBSERVATIONS nificant safety-related changes. Those tion One vehicles. guard manufacturers now say on their VW is unsure whether they will be able websites that cab guards should not be to “fix” the remaining 60,000 vehicles in used as safety devices on log trucks. In the Generation Two category; therefore, CAB GUARD LITIGATION PROMPTS WARNING fact, when clicking on “cab guard” on one VW has until fall 2017 to discover a “fix” LABELS ON PRODUCTS company’s website, a warning box for these vehicles. If an emissions fix is If “heavy truck cab guard” is searched appears stating the device will not prevent found, VW will implement it on all Gener- on Google, more than 1.5 million results serious injury or death. The company now ation Two vehicles, and the owners will appear. And, at least on the first page, says that the cab guards are not to be used receive cash compensation of $7,037 to none of those results will tell you that on log trucks. The warnings are a $16,114. If VW does not discover a “fix” by many of them—if not most—do not work, welcome step in the right direction for fall 2017, owners will have the option to although a majority of trucks on the road protecting unsuspecting log truck drivers sell their cars back to VW. use the devices. What does it look like who think they are safe. In the Albritton In addition to the repairs and buybacks, when a cab guard, which as its name sug- case, the jury returned a $16.8 million part of the settlement requires VW to pay gests, is intended to protect the truck cab verdict against the manufacturer. The $225 million into a mitigation trust, whose during a crash from shifting load, fails to changes by the two companies that manu- do so? It will result in either severe injury facture and sell cab guards are the direct IN THIS ISSUE or death. This was the scenario in a case result of the litigation against them by filed in Alabama on behalf of Larry Albrit- our firm. I. Capitol Observations ...............2 ton’s family. He was killed on Oct. 7, 2013, II. More Automobile News Of Note .......2 while driving a log truck when the load on his trailer shifted, causing the log truck II. III. Purely Political News & Views ........6 to roll over on its side. When the load of logs shifted forward in the rollover, they MORE IV. Legislative Happenings. 7 breached the truck’s cab and struck the AUTOMOBILE driver, resulting in his death. V. The National Scene ................7 Few people know the aluminum guards NEWS OF NOTE as currently designed are too weak to save VI. Whistleblower Litigation ............8 a driver’s life. Thousands of log trucks use cab guards that are worthless for protec- JUDGE BREYER PRELIMINARILY APPROVES VW’S VII. Product Liability Update ...........11 tion. The guards attach to the backs of $1.2 BILLION 3-LITER EMISSIONS SETTLEMENT 18-wheelers pulling flat beds, trailers and VIII. Mass Torts Update ................12 log trailers and should function to prevent This past month has seen a significant shifting cargo from hitting the cab of large development involving the Volkswagen IX. Insurance And Finance Update ......16 trucks. However, as we have discovered, litigation. On Feb. 16, 2017, U.S. District that’s not the reality. Most of the cab Judge Charles Breyer, the federal judge X. Premises Liability Update ...........17 guards are not strong enough to withstand who has the U.S. Litigation, granted pre- XI. Workplace Hazards ...............19 the movement of even one log on a log liminary approval of a class action settle- ment worth at least $1.22 billion, truck, much less the large numbers that XII. Transportation ...................20 are placed on the trailers. concerning 80,000 3.0 Volkswagen cars implicated by in the automaker’s emission In a quest to increase profits, cab guard XIII. Environmental Concerns ...........24 manufacturers often choose to use alumi- cheat scandal. The class action stems from the Environmental Protection Agency’s num rather than something stronger like XIV. Update On Nursing Home Litigation ..25 steel, which would not sacrifice safety, (EPA) discovery in 2015 that Volkswagen without accurately testing the conse- sold diesel cars equipped with software XV. An Update On Class Action Litigation ..26 quences of the decision. For instance, one designed to disguise nitrogen oxide emis- brand of cab guard available for purchase sions in violation of the Clean Air Act. XVI. The Consumer Corner .............27 through the “heavy truck cab guard” The settlement breaks the vehicles Google search states, “All Cab Racks are down into two “Generations.” The settle- XVII. Recalls Update ...................30 tested to uniform static resistance.” In ment separates the two generations by technical terms, it is saying its ability to engine type, and each generation receives XVIII. Firm Activities ...................35 protect a driver was tested while the truck different consideration in the settlement. was not moving. No wreck is static; one Generation One vehicle owners may XIX. Special Recognitions ..............36 log could cause a failure. Cab guard manu- select between having VW buy back their XX. Favorite Bible Verses ..............37 facturers’ shortcuts continue to prove cars, or have the cars modified to become more fuel-efficient. These automobile costly for consumers who believe they are XXI. Closing Observations ..............38 protected because of a cab guard owners will also receive cash compensa- tion ranging $7,755 to $13,880. The reason being in place. XXII. Parting Words ...................39 2 BeasleyAllen.com purpose is funding projects that reduce • The owner has a lease that is or was • Volkswagen Jetta TDI 2009-2015 NOx emissions. The final approval issued by VW Credit, Inc., and is a hearing is set for May 11, 2017. Owners current lessee of, or, on Sept. 18, • Volkswagen Jetta SportWagen who previously sold their vehicles may 2015, or Nov. 2, 2015, were a lessee TDI 2009-2014 still be eligible for cash compensation. of, an Eligible Vehicle. • Volkswagen Beetle TDI 2012-2015 Below are the eligibility requirements for both Generation One and Generation Two U.S. District Judge Charles Breyer also • Volkswagen Beetle Convertible vehicles. preliminarily approved a $372.5 million TDI 2012-2015 If an emissions fix is found before the deal between drivers and parts manufac- fall of 2017, VW will implement it on all turer Robert Bosch GmbH for the auto • Audi A3 TDI 2010-2015 parts manufacturer’s role in designing the Generation Two cars and drivers will • Volkswagen Golf TDI 2010-2015 receive a cash compensation ranging from emissions cheat software. Details of the $7,039 to $16,114. If not, and Judge Breyer Bosch settlement appear in the follow- • Volkswagen Golf SportWa- finds good cause, he can grant an exten- ing article. gen TDI 2015 sion of the deadline. VW can also literally Beasley Allen lawyers Dee Miles, Archie • Volkswagen Passat TDI 2012-2015 buy itself more time−under the settlement Grubb and Clay Barnett are performing Plaintiffs Steering Committee duties on agreement, the car company can opt for 3.0-LITER CLASS VEHICLES an extension as long as 90 days, and will behalf of the claimants. If you have any have to pay $500 per vehicle for every questions, contact Clay Barnett at 800- • Volkswagen Touareg 2009-2016 30-day period. If a fix isn’t discovered, 898-2034 or by email at Clay.Barnett@bea- • Audi Q7 2009-2015 owners will have the option to sell their sleyallen.com. cars back to VW and lessees will be able • Audi A6 2014-2016 to opt out of their leases. That could bring the compensation total up to $4.04 billion. JUDGE BREYER PRELIMINARILY APPROVES • Audi A7 2014-2016 RELATED CONSUMER SETTLEMENT WITH BOSCH DEFENDANTS • Audi A8, A8L 2014-2016 ELIGIBILITY REQUIREMENTS • Audi Q5 2014-2016 On Feb. 16, 2017, Judge Charles Breyer Owners who have owned an eligible also preliminarily approved a settlement • Porsche Cayenne Diesel 2013-2016 vehicle on Sep. 18, 2015, or Nov. 2, 2015, reached between Robert Bosch GmbH Bosch will pay $327.5 million to resolve and sold it before Jan. 31, 2017, may still and Robert Bosch LLC (Bosch) with all claims of consumers and reseller be eligible to participate as an Eligible counsel for the consumer class related to dealers that are pending in the Clean Former Owner; however, Owners must defeat device software the VW Defen- Diesel Cases. Lawyers representing the register by May 1, 2017 to claim benefits dants installed to bypass emissions stan- class will seek attorneys’ fees of a under the Settlements. See below for a list dards in certain 2.0-liter and 3.0-liter maximum of 16 percent of the Bosch Set- of models and description of those who diesel vehicles manufactured by Volkswa- tlement fund plus expenses, but the Court are and are not eligible. gen, Audi and Porsche. The Bosch Settle- ment is part of litigation called In re must approve any fees and expenses Generation One Vehicles: Volkswagen “Clean Diesel” Marketing, before they are paid. Sales Practices, and Products Liability Class members in the VW Settlements • Volkswagen Touareg—2009-2012 Litigation, Case No. 3:15-md-02672-CRB whose claims in those settlements are approved or will be approved in the • Audi Q7—2009-2012 (MDL 2672), in the United States District Court for the Northern District of Califor- future and who do not exclude them- Generation Two Vehicles: nia.