Melton case settles after exposing GM defective ignition switch cover-up

posted on:
March 13, 2015

author:
Staff

Melton family with Jere Beasley and Lance Cooper 250x140 Melton case settles after exposing GM defective ignition switch cover upLawyers representing Ken and Beth Melton, whose claims against General Motors for the death of their daughter exposed a 10-year cover-up of the ignition switch defect, announced that a second lawsuit has been resolved with a confidential settlement.

Brooke Melton, 29, died in a March 2010 crash when the ignition switch in her 2005 Cobalt slipped into the accessory position as she was driving, causing her car to skid into another vehicle. The initial resolution of her case touched off a national controversy over GM’s deception, resulting in $35 million in civil fines, millions of vehicles recalled, Congressional hearings over GM’s failures and the National Highway Traffic Safety Administration’s (NHTSA) lackluster response, and a multi-district litigation (MDL). Among the revelations: GM lied under oath in the original Melton case, prompting her parents to pursue GM again for fraud.

Ken and Beth Melton are hoping that Brooke’s death serves as a catalyst to motivate General Motors and other major automakers to address deadly defects promptly, instead of ignoring them, and prevents other needless tragedies. Lance Cooper and his firm in Marietta, Ga., and the Beasley Allen firm in Montgomery, Ala., represented the Meltons.

“One of the most important issues for the Meltons was accountability. This is a company that concealed this defect for years. They wanted to hold GM accountable, and that is what refiling the lawsuit did,” Cooper said. “They are grieving parents who simply wanted the truth and for no one else to suffer a similar loss.”

In September 2013, the Meltons agreed to settle their case with GM for $5 million. At the time, GM admitted knowledge of the defect, but claimed ignorance on the matter of who changed the defective ignition switch design or authorized that change. Five months later, GM announced a recall for a small subset of the vehicles affected by the defect, but told NHTSA nothing about its long history. On Feb. 19, 2014, the Meltons alerted NHTSA to GM’s knowledge of the faulty switch, and requested that the agency open an investigation called a Timeliness Query to determine if GM met its legal obligation to recall a vehicle within five business days of discovering a defect and if the company had failed to recall all of the affected vehicles.

“The fact that Mr. and Mrs. Melton would be willing to take on a corporate giant and end up being directly responsible for alerting both the government and the public to a massive cover-up by General Motors is one of the most courageous things that I’ve experienced in my career as a lawyer,” Jere Beasley, Principal & Founder of Beasley, Allen, Crow, Methvin, Portis & Miles, P.C., said. “The Meltons truly are heroes for American consumers. I am extremely proud of them and am honored to have been asked to help represent them in a most worthy cause.”

By April 2014, the Meltons learned that GM knew much more about the defect than it attested to in 2013, and asked the company to rescind the original settlement. The couple offered to return the money, and filed a second lawsuit in State Court of Cobb, County, Ga., charging GM with putting a known defective vehicle on the highway and with fraud in the original lawsuit and settlement.

GM established a victim compensation fund to evaluate claims to determine eligibility and compensation amounts for drivers, passengers and pedestrians killed or injured by one of the defective GM vehicles. As of Feb. 1, GM had received a total of 4,180 claims for compensation, according to Kenneth Feinberg, the fund administrator. To date, Mr. Feinberg has determined that 64 deaths and 108 other injury claims are eligible for compensation. But for the Meltons’ efforts, most of these injured drivers and passengers would not have received any compensation, much less fair and appropriate compensation from GM. Mr. Feinberg took an active role in working with the Meltons’ attorneys to settle the claims arising out of the second lawsuit.

The Melton lawsuit also caused the GM ignition switch litigation to move forward in the MDL. In September 2014, U.S. District Judge Jesse M. Furman, who is overseeing the MDL, ruled against GM’s efforts to halt discovery efforts, noting coordinated discovery in the MDL and the Melton case should proceed immediately. The first MDL case is scheduled for trial in January 2016 due in large part to the Meltons’ decision to proceed with their second lawsuit.

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Detroit Free Press – Feinberg helped settle key GM ignition death case
LexisNexis – GM, Parents of Woman Killed in Ignition-Switch Crash Reach Settlement
CNBC – ‘It was a cover-up’: New allegations against GM
Law 360 – GM Emails to King & Spalding, Others Show Cover-up: Atty
The Detroit Bureau – GM Engaged in Cover Up of Ignition Switch Problems
Courtroom View Network – GM Settles Key Georgia Wrongful Death Ignition Switch Suit for the Second Time
Corporate Counsel – Lawyers Say Documents Show GM Fraud and CoverUp
Detroit News – Depositions with GM execs, Delphi to begin in May
NBC News – GM Settles Second Ignition Suit Over Death of Brooke Melton in Cobalt Crash
Bloomberg Business – GM Switch Victim’s Lawyer Says Ignition Documents Show Cover-Up
Wall Street Journal – Family of GM Ignition-Switch Victim Settles for More Than $5 Million
Automotive News – Plaintiffs lawyers say GM internal documents contradict Valukas report
Business Day – Settlement Defuses GM Crisis
Wall Street Journal – Wrongful Death Case That Triggered GM Recall Settled
USA Today – GM settles with Meltons in landmark ignition switch suit
Law 360 – GM Settles Watershed Ignition-Switch Defect Suit
New York Times – GM Settles Switch Suit, Avoiding Depositions
CNN – GM settles second suit with recall whistle-blower

About The Cooper Firm
Lance Cooper founded The Cooper Firm in 2006. With experience in substantial personal injury and wrongful death cases, he has represented plaintiffs in numerous civil jury trials and has successfully prosecuted hundreds of cases and gained multi-million dollar verdicts and settlements on behalf of his clients. For more information, visit www.thecooperfirm.com.

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