War is Brewing in Capital Hill over Auto Defect Proposal
A proposal is being discussed in Congress that would allow consumers to sue automobile manufacturers more easily. The Wall Street Journal reported today that Rep. Bruce Braley (D., Iowa), and Rep. Henry Waxman (D., Calif.), are pressing legislation that would allow consumers to sue vehicle manufacturers in state courts, even if the vehicle is compliant with federal safety guidelines. The automotive industry is fighting the measure which would without question allow for many more lawsuits against car manufacturers for auto defects that result in injury.
If passed, the law would have far reaching effects on manufacturers such as Nissan, Mazda, GM and dealers in many states such as this North Carolina Nissan Dealer or this Staten Island Chevrolet Dealer. It is thought by the automotive industry that the passage of this law would increase the prices for automobiles and hike insurance rates, as there would be more liability for car manufacturers in the cases that faulty vehicle safety components cause injury or accidents.
However, many lawmakers and consumer protection groups support the passage of this proposal in order to protect consumers from what they believe are potentially deadly design flaws. These design flaws have been extensively covered by the media, and manufacturers such as Toyota have come under heavy criticism for perceived inadequacies at protecting their customers from vehicle safety problems.
The new law stems in part from a California based lawsuit against Mazda in which a passenger died in a car accident allegedly from the lap-only seatbelts in the vehicle and faulty safety design. The plaintiff is accusing Mazda of not having a more up-to-date seatbelt system to prevent injury. The case has been taken up by the Supreme Court after two California courts ruled that the lawsuit was pre-empted by federal law. The Supreme Court ruling is certain to have far reaching implications on whether or not automakers will be able to be sued under state liability laws. The Supreme Court is expected to hear in the case in the 2010-2011 term starting in October.
