Category: Blog

GM Feinberg “Compensation” Program – Counts 100th Death Case


GM Feinberg “Compensation” Program – Counts 100th Death Case

May, 2015

Dear Care for Crash Victims Community Members:

On May 11, 2015, the NY Times reports latest death toll of the ignition switch defect counted by the GM Feinberg program has reached 100 deaths.

“Lawyers involved in litigation against G.M. have accused the company of deliberately understating the magnitude of switch-related deaths in congressional hearings last year.

“The success of the cover-up for over a decade leaves most of the victims unaccounted for,” said Robert Hilliard, one of the lead lawyers in a consolidated group of lawsuits against G.M. “One hundred is not even the tip of the iceberg.”….

“In the fund’s regular weekly update released on Monday, Mr. Feinberg said that more than 4,300 claims for deaths and injuries had been filed.

“Of that total, the fund has so far approved payments for 100 deaths and 184 injuries.

“There are still 37 death claims and 589 injury claims that are under review, the fund said.”….

“The switch crisis led to dozens of other recalls last year by G.M., the nation’s largest automaker, for a wide range of vehicle defects. The company has spent about $3 billion over all on the recalls, including setting aside $600 million to compensate ignition-switch victims.”

See http://www.nytimes.com/2015/05/12/business/gms-ignition-switch-death-toll-hits-100.html?emc=edit_th_20150512&nl=todaysheadlines&nlid=20046079&_r=0

While no amount of money can “compensate” for a life lost, if each of the 100 crash victims were to receive the DOT Policy Guidance value of a statistical life of $9.1 million, it would amount to nearly $1 Billion – more than the $600 million set aside by GM for both deaths and serious injuries.  

Mr. Feinberg asked me for that DOT Policy Guidance and I provided it in June of 2014.   I also provided evidence that the number of crashes might amount to nearly 3,500 airbag non-deployment crashes using GM OnStar data published by NHTSA.  ““Extrapolating 10 years of data from the 2005 GM data, there may have been nearly 3,500 frontal air bag non-deployment crashes that met the GM crash severity threshold for deployment.”  See https://www.careforcrashvictims.com/assets/MonthlyReport-May2014.pdf

This is an important number because with the millions of GM vehicles that will be on the roads with this defect unfixed for many more months to come we are all in danger.   Both occupants of GM vehicles and all others are endangered because when the ignition switch turns to accessory or off positions the driver loses power, power steering, power brakes and control of the vehicle — and airbag protection.
The 3,500 number over ten years equals about one such airbag non-deployment crash per day in the U.S.A.  

I believe it is fair to say that neither NHTSA nor GM are handling this with the urgency required for protecting the American people.  Both Senator Blumenthal and Markey are right to call for a “Park It Now” safety advisory that NHTSA and GM have failed to issue so far.” See https://www.careforcrashvictims.com/blog-feinberg-comp.php

Nearly one year later, existing victims are unlikely to receive justice, and future victims unlikely to receive safety or justice.   GM and the Obama Administration have a duty to do better than this.
Senators Markey and Blumenthal just released the following statement:

BLUMENTHAL, MARKEY STATEMENT ON GM COMPENSATION FUND APPROVAL OF 100TH DEATH CLAIM RELATED TO FAULTY IGNITION SWITCHES

 

(Washington, DC) – Today, U.S. Senators Richard Blumenthal (D-Conn.) and Edward J. Markey (D-Mass.) released the following statement on General Motors’ (GM) compensation fund’s approval of the 100th death claim related to faulty ignition switches:

 

“With today’s grim milestone, we now know that at least 100 people have lost their lives because GM made defective cars and lied about them and the Transportation Department failed to aggressively investigate. For years, families like the Averills in Connecticut and many others across the country were left without answers as they grieved for loved ones who died in car accidents. What caused the accident? Why did the airbags fail to deploy? All the while, GM knew, and NHTSA should have known. Sadly, we may never know the full extent of the injuries and deaths attributable to GM’s defective, deadly ignition switch. But these families deserve justice. Despite a recent ruling that GM is protected from liabilities due to a bankruptcy shield, we are committed to ensuring that justice is granted for all victims and their families.

 

“We will be reintroducing legislation in the coming weeks to ensure auto manufacturers provide more information to NHTSA’s Early Warning Reporting systemabout incidents involving fatalities. This information should be published by NHTSA in a publicly available, searchable and user-friendly format so that consumers and independent safety experts can evaluate potential safety defects themselves. We also propose to lift the abysmally low $35 million cap the safety agency faces when fining automakers for egregious violations of the safety act, like the GM ignition switch.”

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Lou

 

Fiat Chrysler Calls Verdict “grossly excessive”


Fiat Chrysler Calls Verdict “grossly excessive”

May, 2015

Dear Care for Crash Victims Community Members:

“Fiat Chrysler has asked a Georgia judge for a new trial a month after a jury awarded $150 million to the family of a 4-year-old Georgia boy killed in a crash and fire involving a Jeep. The company, which makes Jeeps, says the jury’s award of $120 million for the life of Remington Walden and $30 million for his pain and suffering are “grossly excessive” and illegal under Georgia law….Federal documents show that at least 75 people have died in post-crash fires due to the tanks.”  Seehttp://www.usnews.com/news/business/articles/2015/05/08/fiat-chrysler-seeks-new-trial-in-georgia-jeep-fire-case
This action by Fiat Chrysler raises questions of what is “grossly excessive,” Justice, Safety, and who is responsible?  
Grossly Excessive
One measure of “excessive” is the fact that DOT Policy Guidance (copy attached) is that the value of a statistical life is $9.1 million.  Multiply that by the 75 post crash fire deaths yields a value of $682 million.  That does not include values for uncounted past and future tragedies.
Justice
To serve Justice, verdicts have multiple purposes. 
“Civil cases are settled primarily by means of monetary compensation for harm done (“damages“) and orders intended to prevent future harm (for example injunctions). Under some legal systems an award of damages involves some scope for retribution, denunciation and deterrence, by means of additional categories of damages beyond simple compensation, covering a punitive effect, social disapprobation, and potentially, deterrence, and occasionally disgorgement (forfeit of any gain, even if no loss was caused to the other party).”  Seehttp://en.wikipedia.org/wiki/Justice
Safety & Criminal Penalties
It may be that to advance safety for us all, we need criminal penalties at corporate and executive levels as called for recently by two law professors based on the GM tragedies.  “GM’s success in working the system must be offset by criminal culpability, on both the corporate and individual level, for leaving consumers to drive in ticking time bombs for so many years.”  Seehttp://www.huffingtonpost.com/rena-steinzor/gm-and-its-no-good-very-bad_b_7191124.html
Who is Responsible?
Who is in charge of Fiat Chrysler?  See bio of Sergio Marchionne, lawyer, dual citizen of Canada and Italy, board member of Phillip Morris and SGS S.A. Chair.http://en.wikipedia.org/wiki/Sergio_Marchionne
“Fiat Chrysler AutomobilesNV Chief Executive Sergio Marchionne is on track to get $72 million in total pay for 2014—mostly from bonuses and a stock award tied to Fiat’s takeover of Chrysler that led to a 61% jump in its share price.”  Seehttp://www.wsj.com/articles/fiat-chrysler-ceo-marchionne-earned-34-6-million-in-2014-1425661936
The Center for Auto Safety made a statement on this case and pointed out additional responsibilities and needs to achieve Safety and Justice.  See  https://www.careforcrashvictims.com/blog-casjeepjudgement.php
Lou

 

Discount on “Car Safety Wars” + Federal Revolving Door Solution Proposed by NY Times Editors


Discount on “Car Safety Wars” + Federal Revolving Door Solution Proposed by NY Times Editors

April, 2015

Dear Care for Crash Victims Community Members:

Good News for our community.   After I posted my April Monthly Report yesterday reviewing “Car Safety Wars” I learned that I can attach for your use a 30% discount coupon for “Car Safety Wars” by Michael R. Lemov.  The discount only applies to purchases from the publisher Rowman & Littlefield.  See attached discount form.  My Book Review post is now up athttps://www.careforcrashvictims.com/assets/MonthlyReportforApril2015.pdf

Good news on the growing recognition of Regulatory Capture is a new NY Times Editorial that concludes: 

“But consumer advocates are surely right that putting the industry in charge of supplement regulation is like appointing the fox to guard the henhouse. Clearly, the F.D.A. should not allow industry insiders to fill key positions. A permanent solution is for Congress to enact conflict-of-interest laws forcing employees above a certain grade level at any agency to recuse themselves from official actions that affect a former employer or client, including trade associations and their members.”

While this example was a FDA scandal, the Revolving Door – Conflict of Interest problem is pervasive in Washington regulatory agencies today with tragic consequences for the American people.  
A year ago I noted some of the high positions held – previously and presently – by former industry officials at the White House, OMB, DOT, NHTSA and CDC.  Titled “On the Trail of Responsibilities for Crash Deaths and Serious Injuries” it documented a widespread problem of life or death importance to all Americans. See https://www.careforcrashvictims.com/assets/CFCV-MonthlyReport-March2014.pdf 
Later in the year the NY Times carried an Op Ed by Clarence Ditlow and Ralph Nader that called for  “Only a complete overhaul of the agency’s culture will prevent future recalls, since automakers will always place sales and profits over safety and innovation. This should start with closing the revolving door, adopting criminal penalties and increasing funding. All auto companies should have an independent, government-certified safety ombudsman to investigate complaints from whistle-blowers and to report defects directly to the chief executive and the agency.”
Hopefully this will all help Americans get the protection they need and pay for every day as taxpayers and consumers.
Your comments on the new book and my review are welcome.
Lou

 

Will GM Deduct Payments to Crash Victims?


Will GM Deduct Payments to Crash Victims?

April, 2015

Dear Care for Crash Victims Community Members:

A mother who lost her daughter in a GM crash has asked this important question on behalf of all American taxpayers.  

“Our kids dying should not be a tax deduction.”

That’s the message from Laura Christian, mother of Amber Marie Rose the teen who was killed in July 2005 in an accident while driving a GM (GM) car outfitted with a defective ignition switch .”

Source: http://money.cnn.com/2015/04/09/news/companies/gm-airbag-tax-break/

See letter to GM and “response” attached.

Taxpayers should also know how GM valued the lives lost.  Was it the $9.1 million used in the DOT Policy Guidance? See attached DOT Policy.

If GM were required to pay the DOT value and it not be tax deductible, then all Americans would benefit.   GM would have a greater incentive to provide safer vehicles to their customers and to the protection of us all from uncontrolled vehicles.

Lou

 

Jurors Vote for Justice & Safety in Fiery Death of Child in Jeep Crash


Jurors Vote for Justice & Safety in Fiery Death of Child in Jeep Crash

April, 2015

Dear Care for Crash Victims Community Members:“A jury in Georgia has awarded $150 million to the family of a 4-year-old boy killed when a Jeep Grand Cherokee exploded into flames three years ago after being rear-ended. The jury said Chrysler, the maker of Jeeps, must pay nearly the full amount.

Jurors in Decatur County ruled Thursday that Chrysler acted with reckless disregard for human life in selling the family of Remington “Remi” Walden a 1999 Jeep with a gas tank mounted behind the rear axle.

Walden, of Bainbridge, Georgia, was killed when the Jeep driven by his aunt was hit from behind by a pickup truck in March 2012. The fuel tank leaked, engulfing the Jeep in flames and killing the boy.

The verdict comes nearly two years after Chrysler compromised with a federal safety agency and agreed to a scaled-down recall of some older-model Jeeps with the rear-mounted tanks. The tanks have little structure to protect them if struck from behind, making them susceptible to punctures and fires.

Federal documents show that at least 75 people have died in post-crash fires because of the rear-mounted fuel tanks.

The 11-woman, one-man jury ruled after a nine day trial that Chrysler was 99 percent at fault for the crash and the pickup driver was 1 percent at fault. Jurors also determined that Chrysler failed to warn the family of the hazards of driving the Jeep. They ruled that the Waldens should get $30 million for Remi’s pain and suffering and $120 million for the full value of his life, according to a verdict form.

Mike Palese, spokesman for Chrysler parent company FCA US, said the company is disappointed with the verdict and would appeal. Chrysler, he said, was prevented from presenting data submitted to federal safety regulators showing that the vehicles did not pose an unreasonable safety risk.

“The vehicles are not defective,” Palese said.”

Tragedies + Advocacy + Lawyers + Jurors = Justice & Safety

Tragedy:  See http://www.autosafety.org/walden-v-chrysler-trial

Advocacy:  See http://www.autosafety.org/jeep-grand-cherokee-fires-homepage

CAS defect petition work that stimulated the NHTSA investigation. See

http://www.autosafety.org/jeep-grand-cherokee-defect-petition-file  

CAS crash tests. See http://www.autosafety.org/jeep-grand-cherokee-crash-tests

Trial:  See verdict attached.

Future Tragedies
More tragedies are expected: * defective Jeeps are still on the roads  * “fixes” approved by NHTSA are inadequate. 
*  NHTSA still not “fixed” and is still captive of auto industry.
*  $150 million award may be reduced by courts or settlements
*  $150 million award may be tax deductible and paid by taxpayers
At least a Justice and Safety message has been sent.
Lou

 

New Book “Car Safety Wars” by Michael R. Lemov


Monthly Report: New Book “Car Safety Wars” by Michael R. Lemov

April, 2015

Dear Care for Crash Victims Community Members:
My monthly Report for April 2015 attached is a review of a new book to advance auto safety “Car Safety Wars” by Michael R. Lemov 

“Car Safety Wars” is a timely, timeless, treasure for all crash victims – past, present, and future.    We are all crash victims as tax payers, consumers, and endangered citizens needing to protect our safety and happiness.

Get it at  http://www.amazon.com/Car-Safety-Wars-Technology-Politics/dp/161147745X

Lou

 

Ralph Nader on GM Ignition Switch Scandal and Judge Gerber’s Decision


Ralph Nader on GM Ignition Switch Scandal and Judge Gerber’s Decision

April, 2015

Dear Care for Crash Victims Community Members:
Nader writes:

“U.S. Bankruptcy Judge Robert Gerber has done a great disservice to justice by blocking victims and their families from having their rightful day in court to challenge GM’s corporate malfeasance.

This disturbing outcome could have been prevented had the Obama administration defended the rights of those injured by GM’s faulty vehicles. The federal government failed to responsibly exercise its majority stock ownership rights by establishing successorship liability for “New GM”.”

See: https://blog.nader.org/2015/04/16/the-decision-in-the-general-motors-bankruptcy-case/

We the American people need to ask the following questions:

1. Why did Judge Robert Gerber rule against us all as we are all crash victims?

2. Why did the Obama administration not defend the rights of crash victims?

3.  Why do we the American people let these acts go on and on?

Lou