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February 25, 2006
‘NO SETTLE’ POLICY COST FORD $225 MILLION
Ford Motor Co.'s strategy of going to trial to fight vehicle-accident lawsuits cost the automaker more than $255 million in verdicts it lost last year, according to Bloomberg News.
Ford “lost seven verdicts of $20 million or more last year in lawsuits claiming defects linked to rollovers and other accidents, compared with one award against the rest of the industry,” it said. Ford’s tactic of refusing to offer reasonable settlements in injury lawsuits is well known among plaintiff’s attorneys.
“The verdicts also may hurt Dearborn, Mich.-based Ford's effort to improve its safety image and regain market share,” Bloomberg quoted analysts as saying. But a Ford spokesman told the news agency that taking the cases to trial is cost-effective because Ford wins 70 percent to 80 percent of them "We know from 13 years of experience that being ready, willing and able to defend our products and people ... is the most effective way to control litigation costs."
Posted by MVHAP at February 25, 2006 03:54 PM