JUNE 2 016 Distributed to over 40,000 subscribers each month BeasleyAllen.com I. number of lawyers at the firm who self- cause the propellant to burn too quickly, identify as black. rupturing the inflator module and sending CAPITOL To obtain more information about shrapnel through the air bag and into the Beasley Allen’s African American lawyers vehicle occupants. OBSERVATIONS and their successes, visit the attorneys NHTSA will also consult with affected page on the firm’s website at www.beas- vehicle manufacturers before revising the leyallen.com/attorneys. For additional Coordinated Remedy Order that governs BEASLEY ALLEN IN TOP 10 BEST LAW FIRMS FOR information, you can contact Helen Taylor, the accelerated program to obtain and BLACK LAWYERS IN THE U.S. Public Relations Coordinator, at Helen. install replacement inflators. The Coordi- [email protected]. nated Remedy Program will continue to Our law firm was selected by Law360 as ensure that replacement inflators will be one of the 10 Best Law Firms for Black made available to highest-risk vehicles Attorneys in the United States. The firm first. The revised Coordinated Remedy was recognized as having the highest per- II. Program, to be announced this summer, centage of African American partners of will detail the updated vehicle prioritiza- any of the firms included on the list. That’s MORE tion schedule and the schedule by which something all of us at Beasley Allen are AUTOMOBILE manufacturers are required to procure a extremely proud of. sufficient supply of replacement parts to Tom Methvin, Principal & Managing NEWS OF NOTE conduct the required recall repairs. This is Attorney for the firm, says being mindful of providing opportunities for African IN THIS ISSUE American lawyers is part of our firm’s RECALL OF ADDITIONAL 35-40 MILLION TAKATA business plan. The firm actively supports AIR BAG INFLATORS I. Capitol Observations ...............2 programs of the Alabama Lawyers Associa- II. More Automobile News Of Note .......2 tion, and each year hires two or more law The National Highway Traffic Safety clerks from that network. Creating a work- Administration (NHTSA) has expanded III. A Report On The Gulf Coast Disaster ...5 place where black lawyers can succeed is and accelerated the recall of Takata air bag a win-win for all concerned. inflators. The decision followed what the IV. Drug Manufacturers Fraud Litigation ...6 Lawyers are hired by our firm based agency says is confirmation of the root V. Legislative Happenings. 8 strictly on merit. However, when you have cause behind the inflators’ propensity to diversity in a firm, there will be different rupture. As we have written, ruptures of VI. Court Watch ......................8 and needed points of view. We have Afri- the Takata inflators have been tied to 10 VII. The National Scene ................9 can-American lawyers in each section of deaths and more than 100 injuries in the the firm. Lots are expected out of all our United States. There have been at least VIII. The Corporate World ..............10 lawyers and we have been blessed to two more deaths outside the U.S. IX. Whistleblower Litigation ...........12 attract tremendously talented lawyers. We Under the Amended Consent Order provide an environment in the firm where issued to Takata, the company is required X. Congressional Update .............15 each lawyer can be successful. When an to make a series of safety defect decisions XI. Product Liability Update ...........15 individual lawyer has success, the entire that will support vehicle manufacturer firm will benefit and our clients will have recall campaigns of an additional esti- XII. An Update On Johnson & Johnson been well-served. mated 35-40 million inflators, adding to Litigation .......................17 Kendall Dunson, a Principal in the the already 28.8 million inflators previ- XIII. Mass Torts Update ................20 firm’s Personal Injury/Products Liability ously recalled. These expansions are Section, was named Beasley Allen’s Litiga- planned to take place in phases between XIV. An Update On Securities Litigation ....21 tor of the Year for 2015. He has served as May of this year and December of 2019. President of both the Alabama Lawyers The expansions mean that all Takata XV. Insurance and Finance Update ......21 Association and the Capital City Bar Asso- ammonium nitrate-based propellant driver XVI. Employment and FLSA Litigation .....22 ciation. Kendall also served as the first and passenger frontal air bag inflators African-American President of the Mont- without a chemical drying agent, also XVII. Workplace Hazards ...............22 gomery County Bar Association. Kendall known as a desiccant, will be recalled. XVIII. Transportation ...................23 points out that the firm is very proud of The five recall phases are based on pri- our stance on diversity. He is proud of the oritization of risk, determined by the age XIX. Healthcare Issues ................23 success of all of our African-American of the inflators and exposure to high XX. Environmental Concerns ...........24 lawyers. Kendall says: “Each of us has dis- humidity and fluctuating high tempera- tinguished our self as a lawyer, and we are tures that accelerate the degradation of XXI. An Update On Class Action Litigation ..26 all assets to the legal profession.” the chemical propellant. XXII. The Consumer Corner .............27 To compile its Top 10 list, Law360 sur- NHTSA and its independent expert veyed more than 300 U.S. firms with a U.S. reviewed the findings of three indepen- XXIII. Recalls Update ...................28 component, about their overall and minor- dent investigations into the Takata air bag ity headcount numbers as of Dec. 31, 2015. ruptures and confirmed the findings on XXIV. Firm Activities ...................34 Only U.S.-based lawyers were included in the root cause of inflator ruptures. The XXV. Special Recognitions ..............35 the survey. Firms are ranked based on agency says a combination of time, envi- three factors: the percentage of partners, ronmental moisture and fluctuating high XXVI. Favorite Bible Verses ..............37 both equity and non-equity, who self-iden- temperatures contribute to the degrada- XXVII. Closing Observations ..............37 tify as black; the percentage of non-part- tion of the ammonium nitrate propellant ners who self-identify as black; and the in the inflators. Such degradation can XXVIII. Parting Words ...................39 2 BeasleyAllen.com the largest and most complex safety recall The suit says Takata ran secret tests on suspension defect. Judge Koh said in in U.S. history. its air bags and later concealed the adverse her order: All vehicle owners should regularly results until Takata whistleblowers made check SaferCar.gov for information about the information public. It’s alleged that Indeed, the facts here are almost any open safety recall on their vehicle and Takata continued to deny that ammonium identical to those in Daniel: Both what they can do to have it fixed free of nitrate was responsible for the safety cases involve the same defendant charge. The recall expansion does not issues in its air bags, failed to disclose (Ford), the same sort of defect (a include inflators that include a chemical what it knew about its own testing of the latent defect brought under the desiccant that absorbs moisture. There air bags, and continued to attempt to mini- Song-Beverly Act after the one-year have been no reported ruptures of the des- mize the scope of the problem. duration period), and even the iccated inflators due to propellant In the claim against Honda, Hawaii same vehicle (the Focus). The Song- degradation. alleges the automaker didn’t halt sales of Beverly Act claim survived in Takata is required, under the Amended cars furnished with Takata air bags despite Daniel. They also survive here. Consent Order, to redirect its research being aware of the dangers. Hawaii said in Despite Ford’s claims that the ruling did toward the safety of the desiccated infla- the complaint: not actually mean a driver can recover on tors. Absent proof that the desiccated an implied warranty claim “no matter inflators are safe, Takata will be required [Honda] continued to sell cars equipped with Takata air bags and when” a defect is found and that, essen- to recall them under the November 2015 tially, a defect must be discovered within a Consent Order. As you will recall, NHTSA inadequately pursued recalls— saving money while subjecting con- year of purchase, Judge Koh found that imposed the largest civil penalty in its argument did “not comport” with court history in 2015 for Takata’s violations of sumers to an ongoing risk of serious injury and death. precedent. In fact, she said the Ninth the Motor Vehicle Safety Act, and for the Circuit in Daniel and a state court of first time used its authority to accelerate Stephen Levins, head of Hawaii’s Office appeal in Mexia v. Rinker Boat Co.— recall repairs to millions of affected vehi- of Consumer Protection, said companies which concerned a latent engine defect in cles. NHTSA also appointed an Indepen- are obligated to deliver safe products. He certain Rinker boats—both held Plaintiffs dent Monitor to assess, track and report added the following in a statement: in those cases could pursue claims of the company’s compliance with the latent defects outside of the one-year Consent Order and to oversee the Coordi- Takata and Honda put their own period Ford has argued for. Judge Koh said nated Remedy Program. profits and reputations ahead of in her order: Source: Custerfreepress.com honesty and their customers’ safety. We intend to hold them accountable Ford has failed to explain why for their conduct. Mexia and, in particular, Daniel—a published Ninth Circuit decision HAWAII IS FIRST STATE TO SUE TAKATA OVER Hawaii is represented by Melina D. involving the same basic claim DEADLY AIR BAGS Sanchez of the Hawaii Office of Consumer against the same defendant and Protection, L.