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Contact:
Mike Palese, 248.512.2682
mp88@Chrysler.com
Shawn
Morgan, 248.512.2692
sm718@Chrysler.com
August 1, 2005
Trial Lawyer Jackpot
Spotlights Lawsuit Abuse
Lawyers Rake in
$143,000 – Client Gets Only $6,950 in Questionable Case
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Chrysler LLC will appeal a
recent court decision in West Virginia, in which a judge
disregarded a jury verdict and awarded outrageous legal fees
to trial lawyers, approximately 20 times greater than the
plaintiff's award.
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More than 25% of the fees that
were awarded to the plaintiff lawyers were solely related to
their time spent seeking recovery of fees.
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"This is a prime example of the
unpredictability of America's civil justice system that
damages state competitiveness and hurts consumers," said
Steven B. Hantler, Assistant General Counsel,
Chrysler LLC.
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"The true victims in this
case are the citizens of West Virginia," Hantler added.
Background
Larry and
Carolyn George of Tornado, West Virginia, purchased a new 2000
Dodge Intrepid in 2000. The Georges initially complained of
transmission shifting problems. The vehicle was inspected two
separate times by Chrysler LLC technical advisors and no
problem was found during either inspection. Despite this, the
dealer did replace the transmission control module and gearshift
mechanism, and performed other repairs covered under
warranty for customer satisfaction.
Nonetheless, the
plaintiffs filed a lawsuit against Chrysler LLC
claiming breach of implied merchantability, violation of the
lemon law and unfair or deceptive acts or practices. The
plaintiffs turned down two settlement offers. At the time of
trial, the vehicle had 65,000 miles on the odometer.
Eventually, the
jury returned a verdict in plaintiffs' favor on one of the
claims (breach of implied warranty), and awarded the Georges
$6,950, which was actually lower than the company's last
settlement offer. At the time, the jury specifically did not
award attorney's fees. However, the trial lawyers filed a
motion to recoup their fees, and the judge awarded them a sum
that is approximately 20 times greater than what the jury
awarded the plaintiff - a total of $143,026.66, factored at $300
per hour for attorneys and $175-$225 per hour for associates.
Chrysler LLC Spokesperson is Available
Steve
Hantler is available to discuss this case in the context of
lawsuit abuses across the nation and the current legal reform
movement making progress nationally and in the states. Hantler
is Chrysler LLC's assistant general counsel and
Chairman of the American Justice Partnership (AJP), which
champions legal reform in the states and is affiliated with the
National Association of Manufacturers. A recognized legal reform
expert, Hantler is well published in this area, including his
provocative Wall Street Journal commentaries, "How to
Beat the Trial Bar" and "States Compete to Clear the Tort Bar."
Related information about the need for legal reform can be found
at
www.AmericanJusticePartnership.org
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Additional information and news from Chrysler LLC is
available on the Internet at:
www.media.Chrysler.com. |