Senators urge Barra to fire GM’s corporate counsel.

The AP (7/18, Gordon, Durbin) reports that as a Senate subcommittee “delved deeper into GM’s mishandling of the recall of small cars with defective ignition switches,” lawmakers demanded that CEO Mary Barra fire the company’s “chief lawyer and open its compensation plan to more potential victims.” Subcommittee Chair Claire McCaskill praised Barra, “saying she ‘has stepped up, and with courage and conviction has confronted the problem head on and the corporate culture that caused it,’” but also put her “on the spot, telling the CEO that she should have fired GM’s corporate counsel, Michael Millikin, based on the conclusions of an internal report by outside attorney Anton Valukas. Millikin sat next to Barra as she defended him as a man of ‘tremendously high integrity.’”

        The New York Times (7/18, Vlasic, Kessler, Subscription Publication, 9.79M) reports that Millikin “came under withering attack from senators” during the hearing, adding that several senators “also focused on how forthright G.M. was in its disclosures with the National Highway Traffic Safety Administration.” The Wall Street Journal (7/18, Bennett, Hughes, Subscription Publication, 5.89M) reports that Barra stood by Millikin amid questions from senators about how she intends to change GM’s corporate culture without firing him. 

KidsAndCars.org Launches White House Petition Drive to Stop Needless Child Deaths in Hot Vehicles

https://petitions.whitehouse.gov/petition/prevent-child-heat-stroke-deaths-vehicles/ymQR1Ty0

KidsAndCars.org launched a "We the People" petition drive on the White House petition website.
The petition will urge the White House to authorize the U.S. Department of Transportation (DOT) to:

• Provide funding for research and development of innovative technology to detect a child in the rear seat when a driver leaves the vehicle and a child is left alone.
• Identify, evaluate and test new technology to accelerate implementation of the most feasible and effective solutions.
• Require installation of technology in ALL vehicles and/or child safety seats to prevent children from being left alone in vehicles.

Please sign our petition to stop child in hot car deaths today:
https://petitions.whitehouse.gov/petition/prevent-child-heat-stroke-deaths-vehicles/ymQR1Ty0

Documents raise doubts about GM’s forthrightness regarding ignition switch problem.

The New York Times (7/16, A1, Ruiz, Ivory, Subscription Publication, 9.65M) reports that GM’s response to Federal authorities investigating a fatal crash of a Saturn Ion, along with “its replies to queries in other crashes obtained by The New York Times from the National Highway Traffic Safety Administration, casts doubt on how forthright the automaker was with regulators over a defective ignition switch that G.M. has linked to at least 13 deaths over the last decade.” The documents show that GM “repeatedly found a way not to answer the simple question from regulators of what led to a crash.” In at least three cases, the company “said that it had not assessed the cause.” In another, it said that “attorney-client privilege may have prevented it from answering.” In others, it simply said, “G.M. opts not to respond.” 

Tracy Morgan Sues Walmart Over Deadly Crash in New Jersey

The comedian Tracy Morgan has filed a lawsuit against Walmart Stores in which he claims the company was partly responsible for a crash on the New Jersey Turnpike last month that seriously injured him and killed another comedian.

The lawsuit was filed on Thursday in United States District Court in New Jersey, a month after a Walmart truck slammed into the back of a luxury van carrying a group that included Mr. Morgan, 45, severely injuring several others and killing James McNair, a comedian known as Jimmy Mack.

The suit says that Walmart was negligent in the ownership and operation of its truck, which was a “substantial contributing factor” in the crash on June 7.

Prosecutors have charged the driver of the truck, Kevin Roper, of Jonesboro, Ga., with vehicular homicide, saying that at the time of the crash he had not slept in more than 24 hours. Mr. Roper has pleaded not guilty.

Read the entire story at Atlee Hall's website

Steering problems in 500,000 Ford cars being investigated.

The AP (7/11) reported that NHTSA is “investigating steering problems in about 500,000 Ford cars,” specifically Crown Victoria, Grand Marquis, and Marauder vehicles spanning the 2004 to 2007 model years. According to the article, NHTSA believes that the cars’ “heat shield” can develop “rust, dislodge and cause the steering shaft to jam,” having already received “five complaints about the issue” and becoming aware of one injury.

        USA Today (7/11, Healey, 5.82M) reported online that the complaint NHTSA received detailed a crash in which “the steering jammed completely, causing a rollover.”

        Also reporting the news were Reuters (7/12, Singh, Raghavan), the Detroit News (7/12, Shepardson, 643K), the Wall Street Journal (7/12, Ramsey, Subscription Publication, 5.51M), Automotive News (7/11, Burke, 199K), and Edmunds (7/12, Lienert, 379K). 

GM Defective Ignition Fund Falls Short of Full Justice

Ken Feinburg announced GM’s compensation fund on June 30. The fund set up by GM to compensate victims of its defective ignition switch falls far short of providing complete justice for the automaker’s hundreds of victims. While the American Public and all involved appreciate the hard work of the plan administrator and acknowledge the compensation fund is on the right track in two areas:

• It will pay pre-bankruptcy matters, and
• Feinberg intends to pay those who previously settled cases with GM before the ignition switch defect came to light.

But there are some substantive and well-founded concerns about the plan. For example, we do not believe the compensation fund is fair for the vast majority of GM’s victims. The Feinberg plan falls far short of the requirements for an adequate compensation plan. Some objections to the plan include:

• The plan fails to address all of the vehicles that have been recalled for ignition switch defects. GM has limited the scope of eligible vehicles. Therefore, the plan – as proposed by Feinberg – would not compensate all of GM’s victims. GM is calling the shots on eligibility and appears to have tied Feinberg’s hands.
• There are legitimate claims against GM involving defective ignition switches where the air bags did deploy. Even the death of Brooke Melton would not be covered by the proposed plan. That is totally unacceptable.
• The proposed plan gives Ken Feinberg unbridled control over claims. He would have the sole discretion to accept or reject claims.
• The plan does not take into consideration the element of punitive damages, which must be factored in. GM’s conduct, based on the incompetence and gross negligence found by the Valukas investigation, deserves punishment. It is totally unfair to allow GM to escape being punished for its wrongful conduct over a period of 11 years.
• In spite of GM’s acknowledgement that its ignition switch is defective, the plan places a greater burden on claimants to prove their cases. There is no presumption that GM’s ignition switch caused one’s injuries. Specifically, the administrator – who is paid by GM – is given the latitude to reject any and all claims. It is unclear from the plan how the evidence will be viewed by the administrator.
• There are some good features of the plan: paying pre-bankruptcy claims, and paying thoseclaims that were settled before the truth came out about GM’s covering up a known defect that had killed and injured hundreds for more than a decade.
• Finally, this is a voluntary plan. Unless GM changes its litigation strategy, which is contrary to the automaker’s public claims to do “right” by persons with pre-bankruptcy claims and by those persons who had settled their claims before GM’s ignition switch defect and cover-up came to light, this fund won’t work. It’s contrary to “doing right” to force those claimants into the Feinberg plan.

Ms. Barra has made several statements that indicate the threat of the bankruptcy court order will be used to force victims’ families into the compensation fund. That shouldn’t be allowed to happen.

Judge grants preliminary approval to NFL concussion settlement.

USA Today (7/8, Mihoces, 5.82M) reports that U.S. District Judge Anita Brody yesterday “gave preliminary approval” to a settlement of the over 240 “concussion suits filed by former player[s] against the NFL” after the organization removed the cap on damages. A final approval could result in “hundreds of millions of dollars in payments over the next 65 years.” Final approval is pending a November 19th hearing. Under the proposed settlement, all retired NFL athletes would be eligible whether or not they joined the suits. A number of athletes are objecting to the proposed settlement alleging it is beneficial to the NFL and to the attorneys, but is not adequate for those who played the game.