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Products Liability Case Settled

A settlement has been reached in Mohr v. Daimler Chrysler Corp., a products liability case which alleged defects in a 2000 Dodge Caravan.

The Court of Appeals affirmed almost $5,000,000 in compensatory damage awards for the death of the driver and front-seat passenger in the case.  The court also affirmed a finding of no liability for injuries suffered by two passengers.  The court reduced the punitive damage award from almost $49,000,000 to $13,800,000.  A Rule 11 Application was pending before the Tennessee Supreme Court.

With interest, the judgment was over $26,000,000.

The case was settled for $22,600,000.  As everyone knows, Chrysler is in bankruptcy.  The settlement received court approval last Thursday.  The judgment was paid by insurers that posted surety bonds.  Safeco picked up $15.1 of the amount and Chrysler Insurance Co. picked up the balance.

Read the Court of Appeals opinion at 2008 WL 4613584 (Tenn. App. Oct. 14, 2008).

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