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12/10/2014 1 GM Litigation J. Cole Portis Beasley, Allen, Crow, Methvin, Portis & Miles [email protected] BEASLEYALLEN.COM Brooke Melton

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Page 1: GM Litigation - Huntsville Madison County Bar Assoc. CLE/2014/automotive... · GM Litigation J. Cole Portis ... GM knew that the ignition switch in the car was defective GM Chooses

12/10/2014

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GM Litigation

J. Cole Portis Beasley, Allen, Crow, Methvin, Portis & Miles

[email protected]

BEASLEYALLEN.COM

Brooke Melton

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Suit is Filed – June 24, 2011

• Brooke’s parents file suit against GM and Thornton

The initial belief is that it is a defective power steering case

The First Big Break - Black Box Data • Black box data

provides a clue as to what happened

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The First Big Break - Black Box Data

“GM knows what happened and they are not telling you”

Additional Discovery Relating to Defective Key System

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GM’s Response

“I KNOW NOTHING!”

STONEWALL

Turning Points Motion to Compel Mark Hood

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Motion to Compel

The story begins to unfold . . .

GM Knew the Key System Was Defective

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GM Knew the Key System was Defective

• Before Brooke bought her Cobalt, GM knew that the ignition switch in the car was defective

GM Chooses to Do Nothing to Repair the Defects

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Gary Altman

Gary Altman

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Gary Altman

PRTS – March 2005

“It’s a You Problem”

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No, it’s a GM Problem

BEASLEYALLEN.COM

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Technical Service Bulletin

• On October 3, 2005, GM chooses to issue a technical service bulletin

TSB Issued Less Than Two Months After Brooke Buys Her Cobalt

TSB doesn’t fix the defect

PRTS – February 2009

After over 4 years, GM changes the key

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Key Insert

Turning Point -- Retained Mark Hood

• Mechanical engineer with McSwain Engineering

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December 2012 Testing in Pensacola, Florida

• Brooke’s ignition switch

• 2008 Cobalt ignition switch

• Replacement ignition switch

December 2012 Testing in Pensacola, Florida

• GM engineer Ebram Handy is at the inspection

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December 2012 Testing in Pensacola, Florida

December 2012 Testing in Pensacola, Florida

• Conclusion from the testing

– Newer switches require three times more torque to turn than Brooke’s switch

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We Discover a Fatal Accident

2010-2014 Airbag Non-Deploy Investigation

• Brian Stouffer was appointed to assist with a Field Performance Evaluation in 2011

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Airbag Investigation

Airbag Investigation

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DeGiorgio Takes a SWAG at it

Mark Hood Discovers That the “Impossible” Happened

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Retained Mark Hood

Cobalt Ignition Switch Normal Operation

BEASLEYALLEN.COM

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Cobalt Ignition Switch Inadvertent Movement

BEASLEYALLEN.COM

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BEASLEYALLEN.COM

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Brian Stouffer Depo – May 1, 2013

• Handy tells him about results of Hood testing in December 2012

• It would be “prudent” to investigate

Almost 5 Months Later, Stouffer Gets Around to Investigating

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February 7, 2014 GM announces recall

BEASLEYALLEN.COM

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February 24, 2014 - GM Expands Recall and Includes an Attachment

April 1-2 Congressional Hearings

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Meltons’ Offer to Rescind their Agreement

GM’s Response

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Melton II

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BEASLEYALLEN.COM

BEASLEYALLEN.COM

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BEASLEYALLEN.COM

BEASLEYALLEN.COM

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BEASLEYALLEN.COM

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BEASLEYALLEN.COM

BEASLEYALLEN.COM

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BEASLEYALLEN.COM

BEASLEYALLEN.COM

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Valukas Report

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GM Ignition Switch Compensation Plan

BEASLEYALLEN.COM

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DELPHI • 2001- Delphi suggested a switch for the Saturn Ion that had the Catera switch

that had the longer detent plunger and stronger spring for more torque.

• 2001-GM says it wants switch with a softer more European fell—the detent plunger is shortened and the spring strength reduced—the Delta switch created—below GM torque spec.

• 2002- Delta switch approved for Ion—many problems—“switch from Hell”—

• 2002- Feb. 19-email—Ray DeGiorgio (RD) says that the torque issue will be fixed for next model—the 2005 Cobalt.

• 2002—May –GM approves Ion switch for 2005 Cobalt without making change to torque spring or detent plunger.—carry-over Ion design.

• 2002—2005 –GM has numerous complaints about key-off issues from press and customers.

• 2005—July—Delphi email—GM has requested change to Catera switch with longer detent plunger and stronger spring (original design suggested by Delphi)

• 2006-Apr.-RD signs the 3660 form for formal approval of switch design change to Catera switch—no change in part number.

• 2006—June 2 email—shows at least 6 GM engineers are aware of switch 2014

• 2013 – Dec. – GM orders 500k Catera switches from Delphi for possible “field action.” (GM dos not notify public or NHTSA)

• 2014 – Feb. – GM recalls the switch

• 2014-Valukas report—says they found documentary evidence that several GM/Saturn engineers were also aware of the design change in mid-2006.

J. Cole Portis

Beasley, Allen, Crow, Methvin,

Portis, & Miles, P.C.

[email protected]

BEASLEYALLEN.COM