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$24M Deal in Chrysler Wrongful Death Case Approved by Bankruptcy Court
The Recorder
September 28, 2009
A bankruptcy court judge on Thursday approved a $24 million settlement by Chrysler in the death of a man who was run over by a Dodge pickup truck in 2004. The plaintiffs' lawyers said Friday that their demand that Chrysler post an appeal bond after they won a $55.2 million verdict proved to be key once the automaker filed for bankruptcy in April.
"In hindsight, it was the right decision given what ultimately transpired," said Robert Nelson, senior partner at Lieff Cabraser Heimann & Bernstein and lead trial and appellate counsel. "Had we not gotten the judgment bonded, we would have been in line behind all the other creditors." Judge Arthur Gonzalez of the U.S. Bankruptcy Court, Southern District of New York, approved the settlement, which had been facilitated by mediator Randall Wulff.
A Los Angeles jury handed the automaker the $50 million punitive and $5.2 million compensatory verdict in 2007. The company appealed the verdict in the state appeal court. The wrongful death claim accused Chrysler of failing to fix a safety defect that unexpectedly threw parked vehicles into reverse. Longshoreman Richard Mraz suffered fatal head injuries after being run over by a 1992 Dodge Dakota pickup truck that he believed was parked.