gm litigation - huntsville madison county bar assoc. cle/2014/automotive... · gm litigation j....
TRANSCRIPT
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GM Litigation
J. Cole Portis Beasley, Allen, Crow, Methvin, Portis & Miles
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
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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
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Cobalt Ignition Switch Inadvertent Movement
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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
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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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Valukas Report
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GM Ignition Switch Compensation Plan
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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.
BEASLEYALLEN.COM