A Miami jury decided that Elon Musk’s car company Tesla was partly responsible for a deadly crash in Florida involving its Autopilot driver assist technology and must pay the victims more than $240 million in damages.
The federal jury held that Tesla bore significant responsibility because its technology failed and that not all the blame can be put on a reckless driver, even one who admitted he was distracted by his cellphone before hitting a young couple out gazing at the stars. The decision comes as Musk seeks to convince Americans his cars are safe enough to drive on their own as he plans to roll out a driverless taxi service in several cities in the coming months.
The decision ends a four-year long case remarkable not just in its outcome but that it even made it to trial. Many similar cases against Tesla have been dismissed and, when that didn’t happen, settled by the company to avoid the spotlight of a trial.
“This will open the floodgates,” said Miguel Custodio, a car crash lawyer not involved in the Tesla case. “It will embolden a lot of people to come to court.”
The case also included startling charges by lawyers for the family of the deceased, 22-year-old, Naibel Benavides Leon, and for her injured boyfriend, Dillon Angulo. They claimed Tesla either hid or lost key evidence, including data and video recorded seconds before the accident. Tesla said it made a mistake after being shown the evidence and honestly hadn’t thought it was there.
“We finally learned what happened that night, that the car was actually defective,” said Benavides’ sister, Neima Benavides. “Justice was achieved.”
Tesla has previously faced criticism that it is slow to cough up crucial data by relatives of other victims in Tesla crashes, accusations that the car company has denied. In this case, the plaintiffs showed Tesla had the evidence all along, despite its repeated denials, by hiring a forensic data expert who dug it up.
“Today’s verdict is wrong,” Tesla said in a statement, “and only works to set back automotive safety and jeopardize Tesla’s and the entire industry’s efforts to develop and implement lifesaving technology,” They said the plaintiffs concocted a story ”blaming the car when the driver – from day one – admitted and accepted responsibility.”
In addition to a punitive award of $200 million, the jury said Tesla must also pay $43 million of a total $129 million in compensatory damages for the crash, bringing the total borne by the company to $243 million.
“It’s a big number that will send shock waves to others in the industry,” said financial analyst Dan Ives of Wedbush Securities. “It’s not a good day for Tesla.”
Tesla said it will appeal.
Even if that fails, the company says it will end up paying far less than what the jury decided because of a pre-trial agreement that limits punitive damages to three times Tesla’s compensatory damages. Translation: $172 million, not $243 million. But the plaintiff says their deal was based on a multiple of all compensatory damages, not just Tesla’s, and the figure the jury awarded is the one the company will have to pay.
Courtesy: AP
Bd-pratidin English/Lutful Hoque
