If you delve a little deeper into the world of personal injury compensation claims it is a very difficult world to understand. Some of the figures awarded to successful claimants seem exceptionally high while others seem minimal for the type of injuries incurred.
While there are obviously guidelines for the courts to follow let’s see what you make of the following personal injury claims from America and from the UK.
$4.9 billion Against General Motors
It is difficult to ever see this personal injury claim being surpassed with a phenomenal $4.9 billion compensation figure awarded to 6 individuals involved in a devastating car accident. This claim goes back to 1993 when Patricia Anderson, her four children and a family friend were travelling in a 1979 Chevrolet Malibu. What started as a normal day very quickly unravelled and changed the lives of everybody involved forever.
Setting The Scene
As we set the scene for this compensation claim it starts to get a little complicated but very quickly becomes clearer.
The case against General Motors (the manufacturer of the Chevrolet vehicle) was brought after the family car began to slow down at a red light signal. Unbeknown to them a drunk driver who was following (at between 50 mph and 70 mph) failed to stop in time and ploughed into the back of their vehicle. The Chevrolet very quickly turned into a fireball with all passengers suffering extreme burns and five-year-old Alicia Anderson suffering horrific disfigurement and the loss of her right hand.
The Issues In Question
On the surface this seems like an open-and-shut case, the drunk driver was obviously liable because he ploughed into the back of the vehicle which had slowed for a red light. Issues to consider would likely include driving under the influence and driving at high speed. So, what else was there to consider for the courts?
The court case against General Motors revolved around the placement of the gas tank in the 1979 Chevrolet Malibu. In earlier models, the gas tank was placed 20 inches from the rear bumper although for some reason this was reduced to just 11 inches on this particular model.
Evidence was submitted to the courts showing that the chances of a horrific fire, as the Anderson vehicle experienced, were greatly increased by the new positioning of the gas tank. Even with statistical evidence regarding the different design of the new vehicle surely it would be difficult to justify a $4.9 billion compensation claim?
Planning For Litigation
During the trial, evidence was presented showing internal memos going back as far as 1973 to the General Motors management from an engineer at one of the company’s operating divisions. This memo confirmed that the company was aware of issues regarding the positioning of the gas tank on the 1979 Chevrolet Malibu and the significant increase in the chances of a fire in the event of a rear bump. However, the next revelation will put the whole issue in perspective!
It turned out that not only was General Motors aware of the issue and the increased danger but it had already looked into the cost of recalling all vehicles and the cost of litigating any future claims. In a shocking example of money over safety the company decided to do nothing, estimating litigation claims would cost just $2.40 per vehicle sold while there would be a cost of $8.59 per vehicle to recall and fix the problem.
This is one of the more shocking court cases there has been in the personal injury claim sector. Hopefully, lessons have been learned and the industry is now more aware of its legal obligations to put safety above finances.
The Compensation Claim
While headline figures suggest a compensation claim of $4.9 billion, this was broken down into $107 million in compensation and damages and $4.8 billion in punitive damages against General Motors. The fact that the company was only turning over $3 billion a year at the time caused a significant problem for the courts.
A later hearing reduced the claim value and indeed when General Motors filed for bankruptcy in June 2009 there was a further reorganisation of just 12c in the dollar. So, while the headline figure of $4.9 billion is certainly eye-catching the actual figure paid out was significantly lower.
£23 Million Payout For Car Crash Injuries
In March 2009 at the tender age of 13 Agnes Collier was a passenger in her mother Karen Hood’s vehicle. What happened next was revealed in great detail in the court.
BMW executive Anthony Norton was driving his vehicle on that fateful day during which he pulled out from a side road without taking due care. He forced the vehicle carrying Agnes Collier and Karen Hood into the path of an oncoming lorry. Her mother was killed instantly and Agnes suffered horrific spinal injuries which have literally changed her life forever.
Admitting Liability
While Agnes has attempted to live life to the full there are obvious limitations as to what she can do although they have not stopped her from going on to have a highly successful education.
Anthony Norton admitted liability and while there was little in the way of sympathy for him in the courts he never drove again and resigned from his position with BMW. He only escaped a jail sentence because Agnes’s father and Agnes herself told the courts they did not want to see Mr Norton serve a sentence.
Compensation Payment
When you bear in mind the horrific injuries suffered by Agnes a lump sum of £7.25 million and a tax-free payment of £270,000 a year (index-linked) was awarded to ensure she had as comfortable a life as possible. We can only estimate the cost of her long-term health care and any knock-on impact this may have in later life. It was estimated that if Agnes was to live a normal life expectancy the total payout would be in the region of £23 million.
It is difficult to put a value on someone’s standard of living, long-term health care and the impact these injuries would have on not just her day-to-day activities but also her personal life. Is a £23 million payout sufficient?
Attention To Detail
When we see the headline compensation claims of $4.9 billion and £23 million sometimes we automatically assume those figures are crazy and bear no resemblance to everyday life. It is only when you dig a little deeper that you see the issues emerging and the fact that, for example, General Motors appeared to put finances above safety that you begin to appreciate the eventual compensation amount.
In many ways, the General Motors case was used to improve the industry as a whole and send out a warning shot about what would happen to others who followed suit in years to come. While lessons have been learned, where do companies legally and morally draw the line between safety and finance?
The case involving Agnes Collier grabbed the headlines because of the estimated £23 million payout but can we really imagine how this changed her life? Everyday activities we take for granted were taken away in that split second when former BMW executive Anthony Norton pulled out from a side road without taking due care.
It is only when you dig a little deeper into individual cases that you see the impact mental and physical injuries can have on a future standard of living. How do you put a figure on these heartbreaking cases?
