Critical Mass: Boeing's $100M Promise Met With Lawyers' Skepticism. Plus: Fuel Tank Litigation Out of Gas
Attorneys said the aerospace company's offer wouldn't give answers about two 737 Max 8 crashes, and would not absolve it of potential exposure to punitive damages
July 10, 2019 at 12:15 PM
5 minute read
Welcome to Critical Mass, Law.com's weekly briefing for class action and mass tort attorneys. I'm Max Mitchell in Philadelphia filling in for your usual columnist Amanda Bronstad.
The Fourth of July weekend can be one of the busiest travel times of the year, and so it's fitting that there was so much travel-related news this week, including a settlement over a car dealership's spam texts, a class action over a Ford truck's fuel tanks, and Boeing's pledge to provide $100 million to the victims of its 737 Max 8 plane crashes.
Your feedback is always welcome. You can reach me at [email protected] or on Twitter @MMitchellTLI. You may also reach Amanda at [email protected], or find her on Twitter: @abronstadlaw.
Attorneys Balk At Boeing's $100M Fund
On July 3, Boeing pledged $100 million to support the families and communities affected by the crashes of the two 737 Max 8 planes, however, attorneys who spoke with Law.com said they had concerns the vague details of the plan.
Boeing's announcement comes as the company faces dozens of lawsuits have been filed in the U.S. District Court for the Northern District of Illinois. Claims against the Chicago-based company have focused on allegations that the planes were defectively designed, and that the company failed to properly address clear warnings about the dangers of the plane's design.
When asked about how the funds could affect the litigation, a spokesman for the company said the pledge is “independent” of the lawsuits, but not all attorneys are taking the company at its word.
Philadelphia-based Kline & Specter attorney Andrew Stern, who is suing on behalf of a Tennessee resident who died in the crash, was one of several attorneys who said the move seemed aimed at garnering public support in anticipation of the damaging facts that he expects the litigation will showcase. Stern also said he was skeptical that the funds will be completely separate from any pending, and future, litigation.
“It's extremely ambiguous,” Stern said.
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Ford Fuel Tank Class Action Runs Out of Gas
The U.S. Court of Appeals for the Third Circuit denied efforts to revive a proposed class action over alleged defects in Ford truck fuel tanks. As reported by my colleague P.J. D'Annunzio, the appeals court on Monday upheld a decision by New Jersey District Court Judge Kevin McNulty, who granted ford summary judgment in the case. The plaintiff, Galo Coba, had contended that from 2001 to 2010, Ford F-series and E-series vehicles' fuel tanks were prone to “delamination,” which involved particles from the fuel tank lining detaching and causing clogs within the engine. The Third Circuit's decision, however, held that materials-or-workmanship warranty for Ford vehicles did not cover design defects, such as the alleged peeling of fuel tank lining, and that Ford's knowledge about the peeling did not create a triable issue. “While parties are free to redefine words in their contracts in ways that deviate from plain and ordinary meaning, they did not do so here,” Third Circuit Judge Cheryl Ann Krause said in her ruling. “'Materials' and 'workmanship' in the [new vehicle limited warranty] carry their plain meaning, and the warranty therefore does not extend to design defects.”
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Spam Texts Yield Millions of Settlement Dollars
A team of South Florida attorneys reached a $5 million settlement with a West Palm Beach car dealership that allegedly sent more than 58,000 marketing text messages. The messages, attorneys alleged, violated the Telephone Consumer Protection Act.
The case stemmed from allegations that a “rogue employee” got hold of the company's customer list and used them in CallFire, a third-party mass text messaging platform. According to the Daily Business Review's Raychel Lean, the texts featured deals for buying and leasing cars.
“That's 58,000 people who've looked at their phone and were like, 'Why the heck is this company texting me?'” said Andrew Shamis of Shamis & Gentile in Miami, who represented the plaintiffs.
Shamis worked with Scott Edelsberg of Edelsberg Law in Aventura and Manuel Hiraldo of Manuel Hiraldo P.A. in Fort Lauderdale to sue on behalf of everyone allegedly included in the marketing blasts.
U.S. District Judge Beth Bloom in the Southern District of Florida signed off on the settlement July 1, giving $180 to every class member. Attorney fees make up 25% of the award, or $1.25 million.
Here's what else you need to know:
State To Test Mesh Claims: California is preparing to litigate the first transvaginal mesh trial involving a state attorney general. The bench trial is set to focus on allegations that Johnson & Johnson's Ethicon misrepresented the safety of its mesh devices. Opening statements are set to be delivered beginning July 15 in San Diego County Superior Court.
Judge Shortage Could Affect NJ's MDL Docket: New Jersey is a hotspot for consolidated mass litigation, but Judge Freda Wolfson, who recently became Chief Judge for the U.S. District Court for New Jersey, told New Jersey Law Journal's Charles Toutant that the severe shortage of judges may lead her to advise the Judicial Panel for Multidistrict Litigation to avoid the district if the judges become overloaded.
Class of Accused: A Michigan State University student accused of sexual assault is seeking to expand the lawsuit he filed against the school into a class action. The student, proceeding under the name “John Doe”, said he was suspended after what he claimed had been a consensual encounter at his fraternity house. The plaintiff said the school misapplied Title IX, and last week he amended the case to create a class action for students who were similarly accused and disciplined. According to the Detroit Free Press, the move marks the first attempt in the nation to create a class action for those disciplined under Title IX.
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