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The Wages of Fraud

We’re not sure how often federal Chief Judges invite plaintiffs’ attorneys to sue individual defense lawyers for committing fraud upon several courts, but we’re guessing that if it were more often, the temptation to deliberately obfuscate discovery would be less compelling. And we definitely wouldn’t see lawsuits like the one Scottsdale attorney David L. Kurtz filed against Goodyear Tire and Rubber Company; its Arizona counsel, Graeme Hancock, and his firm, Fennemore Craig; lawyer Basil Musnuff, and his former Akron law firm, Roetzel & Andress; and Goodyear’s Associate General CounselDeborah Okey.

Kurtz, a products liability attorney for 30 years, who spent the first two-thirds of his career on the defense side says, “This is the worst corporate conduct that I’ve seen. I’ve never seen lawyers act this way. It breaks the system.”

The seven-count, 153-page lawsuit, filed in Arizona State Superior Court, seeks punitive damages via a jury trial for five years of delay and deception in a product liability action involving the G159, a tire Goodyear developed for the urban delivery vehicle market, but sold to the recreational vehicle market, even though it was wholly unsuited for that use. In June 2003, the Haeger family became one of the many victims of this mismatch. Leroy Haeger was at the wheel of his Spartan Gulf Stream Coach on Interstate 25 in New Mexico, when the right front tire failed. The Gulf Stream veered to the right and then rolled over, seriously injuring Leroy and Donna Haeger, along with their passengers, Barry and Suzanne Haeger.

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Will Chrysler stand behind the Jeep?

Well, today’s the day Chrysler must formally tell NHTSA to pound sand or agree to recall the 1993-2004 Jeep Grand Cherokee and the 2002-2007 Jeep Liberty to mitigate a behind-the-rear-axle fuel tank design that makes it vulnerable to fuel-fed fires in rear impacts.

We will not speculate. We have, however, hired Randy Whitfield of Quality Control Systems Corporation to see if he could replicate Chrysler’s first – and less favorable, albeit more accurate – method of comparison of fire-related, fatal rear-impact crashes.  

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Chrysler and the Jeep – Outlier?

So Chrysler has thrown down the gauntlet, and its claque has dutifully delivered its standing O. Atta boy, Chrysler, tell those regulators to stick it!

As usual, those opining about Chrysler’s public resistance to recalling the 1993 – 2004 Jeep Grand Cherokees and 2002 -2007 Libertys for defective fuel tanks haven’t a bloody clue. And so, as usual, The Safety Record Blog will put Chrysler’s shot across the bow into its proper context.

To recap: In November 2009, the Center for Auto Safety petitioned the National Highway Traffic Safety Administration to open an investigation into fuel-fed fires plaguing the early model Jeep Grand Cherokees, alleging that the plastic fuel tank’s placement behind the rear axle and below the rear bumper, and the lack of adequate shielding made it more vulnerable to rupture or leakage from rear-impacts and in rollovers. According to Fatality Analysis Reporting System (FARS) data, this design resulted in 172 fatal fire crashes with 254 fatalities, CAS said. The agency granted the CAS petition in August 2010, and opened a Preliminary Evaluation. In June 2012, ODI bumped up the investigation to an Engineering Analysis. Two weeks ago, NHTSA announced that it had requested that Chrysler recall the 1993-2004 Jeep Grand Cherokee and 2002 -2007 Liberty and was ready to go to an Initial Decision hearing if Chrysler refused.

So far, Chrysler has refused. Its preliminary defense was laid out in a “White Paper” (see NHTSA Drops Hammer on Chrysler Jeeps) Yes, it was written on virtual white paper. But we expected something a little more detailed than a three-page press release and a chart with writing so tiny, one needs to blow it up 500 percent to read it. Its basic argument is, and has always been, this: The Jeep Grand Cherokee and the Jeep Liberty met the Federal Motor Vehicle Safety Standard (FMVSS) 301 fuel tank integrity at the time, and the Jeep Grand Cherokee and Liberty, statistically are not outliers for rear-impact fuel-fed fires. (Chrysler has until next Tuesday to file its official response.) 

Sounds reasonable, no? Let’s unpack it.

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NHTSA Drops the Hammer on Chrysler Jeeps

Normal 0 false false false EN-US X-NONE X-NONE After a lengthy investigation stemming from a 2009 Center for Auto Safety petition, the National Highway Traffic Safety Administration ratcheted to a rare level of enforcement. According to a letter the agency sent to Chrysler yesterday, ODI  reached the “tentative” conclusion that the 1993 – 2004 Jeep […]

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The Toyota Claimants Are Getting Restless

The $1.63 billion deal in the Toyota Unintended Acceleration economic damages multi-district litigation worked out between the lawyers for Toyota and Hagens Berman, Sobol, Shapiro, and Susman Godfrey the firms representing 22.6 million consumers is headed for a final approval hearing before U.S. District Judge James Selna  on June 14, and really, who could complain?

Toyota gets to continue to claim that its electronics are just fine while funding research blaming drivers for runaway vehicles that it can stash in its back pocket for future unintended acceleration product liability lawsuits. Some Toyota owners – but not those of the most troubled model years will get a brake override system that sorta, kinda may work sometimes under select conditions (hint—don’t put your foot on the brake first).

There’s $250 million for consumers whose vehicles are ineligible for a brake override retrofit. The cash payouts for those folks range from $37.50 to $125. Let’s see. That ought to cover an oil change, a new set of windshield wiper blades, and a Vente Mocha Chip Frappacino at Starbucks to sip while you wait. Done!

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The Ill of the Grill

If you experience searing pain after searing a steak on the grill, a small wire grill brush bristle may be to blame. Tristin Beck of Mount Lake Terrace, Washington and Brittany Berg of Coeur d’Alene, Idaho, were among the most recent cases to hit the news. Both teens wound up in a hospital operating room after accidentally ingesting a filament of grill brush wire embedded in the food they had been eating.

This phenomenon gained prominence last year, after U.S. Senator Charles E. Schumer and Consumer Reports joined together to call on the U.S. Consumer Product Safety Commission to determine whether grill brushes were safe and to warn consumers of the potential hazard, based on incidents that occurred in New Jersey and Washington State. The Centers for Disease Control followed up with an item in its Weekly Morbidity and Mortality Report (WMMR) authored by a team of Rhode Island emergency room doctors and radiologists documenting the not-so-rare occurrence of grill brush wire ingestion.

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Jeep Fire Advocacy Heats up While Investigation Stalls

How much is your conscience worth? Jenelle Embrey figures it at about $2,000 a month. That is roughly her monthly out-of-pocket cost for three billboards in the Frederick County, Virginia area, depicting a Jeep Grand Cherokee engulfed by flames and the plea: “Help Save Innocent Families Change.org/Dangerous Jeeps.”

The Linden, Virginia woman, who works as a medical transcriptionist and a bookkeeper, is hoping that the graphic depictions will drive motorists to sign her online petition at change.org demanding that Chrysler recall the 1993 -2004 Jeep Grand Cherokees to correct a design that sites the plastic gas tank behind the rear axle, where it is vulnerable to fuel fires in rear-impact crashes. As of this morning, she had collected nearly 3,355 signatures.

 “I worked five years at my part time job, and I was at the point where I thought:  ‘It’s time to let go of the second job.’ Then the accident happened, and I said: ‘I’m going to hold on to it to fund my Jeep campaign,’” Embrey says. “It’s insane that they are still on the road. [Chrysler] knows they are faulty.”

The Jeep Grand Cherokees have been under the scrutiny of the National Highway Traffic Safety Administration since November 2009, when the Center for Auto Safety petitioned the agency to open an investigation into fuel-fed fires in Jeep Grand Cherokees from the 1992-2008 model years. The advocacy group charged that the plastic fuel tank’s placement behind the rear axle and below the rear bumper, and the lack of adequate shielding – similar in design to the infamous Ford Pinto – made it more vulnerable to rupture or leakage from rear-impacts and in rollovers. According to Fatality Analysis Reporting System (FARS) data, this design resulted in 172 fatal fire crashes with 254 fatalities, CAS said. The agency granted the CAS petition in August 2010, and opened a Preliminary Evaluation. In June 2012, ODI bumped up the investigation to an Engineering Analysis; it remains open.

Today, the Center for Auto Safety sent another letter to Chrysler Chairman Sergio Marchionne and John Elkann, Chairman of parent company, Fiat Spa, calling on the company to recall the 1993-2004 Jeep Grand Cherokees, 1993-2001 Jeep Cherokees and 2002-2007 Jeep Libertys. The letter was an emotional appeal, featuring the photos of toddlers and small children, who are among the occupants who have died in rear impact fire-involved crashes.  CAS cited 349 fatal fire crashes of 1993-2004 Jeep Grand Cherokees, 1993-2001 Jeep Cherokees and 2002-2007 Jeep Libertys that have resulted in 478 deaths, at least 157 of which are deaths due to fire.

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Senate Takes Up Recalled Rental Bill

The Consumer Protection Subcommittee of the Senate Commerce Committee will hold hearings tomorrow on a bill that would prohibit car rental companies from renting vehicles that are under a safety recall until they are remedied.

Called the Raechel and Jacqueline Houck Safe Rental Car Act of 2013, the bill is a bi-partisan affair, sponsored by Democratic Sens. Charles E. Schumer (D-NY), Barbara Boxer (D-CA), and Claire McCaskill (D-MO) and Republican Sen. Lisa Murkowski (R-AK), and supported by the car rental companies.

The namesakes of the bill, Raechel Houck, 24, and her 20 year-old sister, Jacqueline Houck, died in an Enterprise Rent-A-Car 2004 PT Cruiser on October 7, 2004 in a fiery collision while northbound on Highway 101 in Monterey County. The driver, Raechel Houck, lost control of the vehicle, crossing the median and crashing into an 18-wheeled Freightliner tractor trailer. The driver of the truck testified that he could see smoke pouring from the PT Cruiser’s engine compartment just before it veered into the southbound lanes.

Chrysler had recalled 439,000 2001-2004 PT Cruiser and the 2005 PT Cruiser Convertible a month earlier. The September 9, 2004 recall noted that the power steering hose could rub against the transaxle differential cover, eventually resulting in a steering fluid leak and an underhood fire. By the time of the Houck crash, Chrysler had reported a total of 126 PT Cruiser fires, beginning in 2000. Despite the recall notice, Enterprise had rented the PT Cruiser that crashed to three other customers before the Houcks. On the day of the crash, the PT Cruiser was the only vehicle available and Enterprise employees offered it to the Houck sisters as a free upgrade.

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The Safety Record Special Report: How Consumer’s Union Shocking Child Seat Tests Forced the Recall of the Evenflo Discovery

Editor’s note: The Safety Record spent more than a year seeking the documents related to Recall 08C002 involving Evenflo Discovery child restraint.  The Safety Record undertook this project because the defect was serious, resulting in a recall of more than 1 million seats. Yet, much the public record explaining how this recall came about was missing, and, the National Highway Traffic Safety Administration was not forthright in its actions or in its public statements in February 2008. The Safety Record is committed to ensuring that the public record is complete and to bringing transparency to NHTSA’s important regulatory and investigative activities in the interest of government accountability. Documents obtained following the successful settlement of Safety Research & Strategies litigation against NHTSA show that the Evenflo recall was the result of secret investigations and behind-the-scenes exchanges between the agency and Evenflo. This Special Report, in part, is based on these records.  

On September 19, 2005, Isaac Neal Eslinger died of his injuries in a rollover crash that occurred the day before. He was seven months old. His mother Debra was at the wheel of the family’s 1996 Isuzu Oasis van, travelling north on Highway 6 towards Mandan, North Dakota. According to the police report of the crash, the last thing Debra Eslinger remembered was glancing back at her daughter, before realizing that she had swerved onto the shoulder of the other side of the road. Debra tried to correct her steering, but lost control of the van. It rolled over and came to rest in a ditch on the east side of the highway.

Debra, who was wearing her seatbelt, and her three-year-old daughter, secured in a child safety seat, survived the crash without any injuries. The Evenflo Discovery infant seat holding Isaac, however, detached from its base in the crash. Isaac, still strapped in the seat, was pitched out of the van. He died of a skull fracture and head injury.

Isaac’s father, Neal Eslinger, a chiropractor in Bismarck, paid tribute to his only son on a blog he writes, called My Living Strength:

“Isaac has a spirit presence that warmed all hearts. He was a “master of smiling” as he displayed his prominent dimples, twinkling eyes and his unique laughs, giggles and squeaks. The mere glimpse of his mother or sound of her voice would bring a smile and a laugh that truly was an honor to witness. …Isaac was a gift from God and he always was and always will be “Our Little Angel.” Words cannot express the blessings he brought into our lives.”

Three weeks after the crash, on Oct. 7, 2005, Isaac Eslinger’s death in an Evenflo Discovery infant seat was reported to the National Highway Traffic Safety Administration. Fifteen months later, NHTSA’s Office of Defects Investigation came looking for the crash report.

January 2007 would turn out to be a turning point for the popular infant carrier combination car seat. A controversial Consumer Reports story claimed that sled-tests showed that some models of the Discovery had a tendency to separate from its base under the stress of crash forces. This wasn’t actually news. A spate of infant deaths and injuries linked to base separations had initiated a low-level NHTSA investigation in 2004. But that probe was closed four months later with no defect finding.

NHTSA and Evenflo swiftly dispatched the Consumer Reports story by pointing out that its side-impact sled tests were actually conducted at a much higher rate of speed than the story claimed. Within weeks, Consumers Union, publisher of Consumer Reports, printed a retraction, withdrew the story and apologized to its readers. But one year later, NHTSA and Evenflo announced that the juvenile products manufacturing firm was recalling 1.1 million Discovery infant carriers because testing by both parties showed that it could separate from its base in a side impact.

In the three-and-a-half year gap between the closing of the first investigation and the recall of the Discovery infant carrier were two secret NHTSA defects investigations into the infant carrier’s propensity for seat base separations, the discrediting of a consumer advocacy organization that attempted to raise the bar on child restraint safety, and more child injuries and deaths in crashes that resulted in base separations.

The recall was five years ago, but questions about its origins linger. Save a flurry of stories published about CU’s testing mistake and retraction, and fewer when the recall was announced a year later, the record surrounding this child safety defect has remained hidden from public view. Increasingly, this appears to be by design. NHTSA frequently hides the extent of its investigative activities and its negotiations with industry. If no formal Preliminary Evaluation or Engineering Analysis is opened, the public record is never established. This secrecy has been the subject of criticism by safety advocates, who say that it allows the agency to avoid accountability, and by the Department of Transportation’s Office of Inspector General. In an October 2011 audit, the OIG criticized the Office of Defects lack of documentation and transparency:

“Without comprehensive documentation of pre-investigation activities, ODI’s decisions are open to interpretation and questions after the fact, potentially undermining public confidence in its actions.” Noting NHTSA’s failure to document meetings with manufacturers, OIG recommended “a complete and transparent record system with documented support for decisions that significantly affect its investigations.”

In November 2011, Safety Research & Strategies filed a Freedom of Information Request for the communications between NHTSA and Evenflo surrounding February 2008 recall. When NHTSA responded that it had no such documents, SRS appealed – arguing that the simultaneous press releases issued by NHTSA and Evenflo showed that each entity knew about the other’s test results on the Discovery – evidence of communication between the two. In April, after NHTSA did not respond to SRS’s appeal, the company filed a civil lawsuit in U.S. District Court to obtain the documents. In February, SRS and the Department of Transportation settled the lawsuit, after NHTSA released all of the documents it said were in its possession. The Department of Transportation paid SRS’s costs and legal fees of $14,281. 

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Liberty Tire Gives Consumers Another Reason to Avoid Used Tires

In 2012, Kumho Tires notified NHTSA that it was recalling 40,769 SOLUS KH25 passenger car tires (size 225/45R17) due to sidewall cracking. At the time, nearly the entire recall population was in Kumho’s warehouses. Only 122 had actually been sold to customers; another 1,116 were in dealer’s inventories. But thanks to one of the nation’s biggest tire recyclers, Kumho has to recall them again.

On April 30, Kuhmo announced that it would now have to collect nearly 12,000 SOLUS KH25, because the national tire recycler that was supposed to scrap them resold them to used tire dealers. According the Defect and Noncompliance notice Kumho filed with the National Highway Traffic Safety Administration, in early August 2012, the Vietnamese tire manufacturer paid Liberty Tire Recycling to dispose of 11,922 tires from its Itasca, Illinois warehouse. The tires slated for destruction had three holes drilled into in the tread surface – presumably to render them unusable. Instead, Liberty sold 7,875 tires to various tire wholesalers in Texas, New York, North Carolina and Puerto Rico.

On its website, Liberty proclaims itself as an environmental champion, turning more than 110 million scrap tires annually into the “raw materials for smart, sustainable products that improve people’s lives”: 

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