Massachusetts Personal Injury Library
Post Collision Fuel-Fed Fires: The Billion Dollar GM Verdict
On July 9, 1999, a jury in Los Angeles awarded the highest personal injury verdict in U.S. history to the plaintiffs who had filed a lawsuit against car manufacturer, General Motors (GM). The case involved six victims, several of which were children, who were severely burned when the 1979 Chevy Malibu they were driving in was involved in an accident on Christmas Eve in 1993.
When the Malibu was rear-ended, the gas tank was punctured which led to a post-collision fuel-fed fire (PCFFF). Post-collision fuel-fed fires can occur when fuel, oxygen and an ignition source are present. Car manufacturers have a duty to consumers to ensure that fuel systems are designed to withstand crashes so that such fires are minimize.
During Anderson v. General Motors, evidence presented by the plaintiffs revealed that GM was aware of the PCFFF risk to motorists since the early 1970s.
Specifically, GM execs knew that there was a risk of gas tank explosions due to the design and placement of the tanks and that there were safer alternatives. In a memo titled, “Value Analysis of Auto Fuel Fed Fire Related Fatalities,” GM engineer Edward Ivey conducted a cost-benefit analysis to identify whether or not GM should implement a safer alternative to their defectively designed fuel system.
The Ivey Memo stated:
- Approximately 550 fuel-fed fire fatalities occurred per year in GM automobiles
- Each fatality had a value of $200,000
- The cost to GM of fuel-fed fire fatalities per vehicle was $2.40
The cost of moving the fuel tank to a safer location on the automobile would have been approximately $8.59 per car. In calculating damages to be awarded to the plaintiffs in this case, the jury found that a high punitive damage amount should be awarded to the victims in order to persuade billion dollar automakers that safety should trump cost in their designs. In addition to $107 million in compensatory damages, the jury awarded the plaintiffs $4.8 billion in punitive damages (the award was later reduced to $1.09 billion by the court).
Post-collision fuel-fed fires have decreased since the Malibu was designed in the 1970s, but recent recalls remind consumers that defective automobiles may be released into the marketplace that can seriously injury and kill occupants.
If you have been injured as a result of a defective fuel system, you may be entitled to compensation. Contact us at (888) 208-1695 for a FREE evaluation of your case. An experienced personal injury attorney can help you get the compensation you deserve.
