We Keep Suing Auto Makers For $Billions ... Because We Can!
Ambulance chasers are costing the industry billions. But fifteen people are dead because Tesla's doors don't open after crashes. The line between legitimate accountability and predatory litigation just got complicated.
We Keep Suing Auto Makers For $Billions ... Because We Can!
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The Mitsubishi 3000GT verdict seemed clear. Francis Amagasu crashed in 2017, lost control passing another vehicle, hit three trees, rolled over, and became quadriplegic when his head struck the roof. A jury awarded him over $1 billion in damages for a car that met every 1992 safety standard in effect when it was built. Then the Superior Court of Pennsylvania erased everything because the trial judge gave incorrect jury instructions. Eight years of litigation. Back to zero.

Tesla's door handle problems tell a different story. Bloomberg's investigation confirmed at least 15 deaths directly linked to Tesla's electronic door systems failing after crashes. More than half occurred since November 2024. The problem isn't theoretical. It's people burning alive in vehicles they can't escape because power loss disables door locks and manual releases are hidden where panic stricken occupants can't find them.

The Legitimate Safety Crisis

Wendy Dennis died in a Washington Model 3 crash. Witnesses tried desperately to open doors that wouldn't respond. They broke windows with baseball bats while she burned inside. Her husband Jeffrey survived with severe burns. Wisconsin Model S crash: five dead, bodies clustered near front seats suggesting they fought to escape. Piedmont Cybertruck: Krysta Tsukahara survived impact with minor injuries, died from smoke inhalation because she couldn't get out.

China is reportedly considering banning Tesla style retractable door handles entirely over safety concerns. Europe is implementing new rescue protocols. The National Highway Traffic Safety Administration opened formal investigations. This isn't frivolous litigation. This is a design that kills people who survive crashes.

Some Tesla models from 2017 through 2024 lacked manual releases for rear doors entirely. No mechanical backup. If electronics failed, rear passengers were trapped. Period. Franz von Holzhausen, Tesla's design chief, admitted in 2025 the company is working on combining electronic and mechanical releases into one button. That statement acknowledges the problem exists while simultaneously asking why it took 15 deaths to address.

The Billion Dollar Question

The Mitsubishi verdict initially awarded $800 million in punitive damages alone. Ford faced $1.7 billion over a roof crush claim, later thrown out. Another $2.5 billion judgment over a 2015 Super Duty rollover, currently on appeal. GM paid $4.9 billion after a fuel tank explosion, reduced to $1.2 billion on appeal. These aren't settlements. These are jury awards designed to punish corporations for alleged negligence.

Even when overturned, the costs are staggering. Eight years of legal fees defending the Mitsubishi case. Expert witnesses. Court costs. Insurance premiums that reflect litigation risk. Mitsubishi ultimately won its appeal. The victory cost millions in legal expenses for a car that met 1992 standards when built.

The plaintiffs' bar has become exceptionally sophisticated. Law firm websites advertise "We've successfully held major automotive manufacturers accountable" and tout "$300 million in settlements secured." One Tesla door lawsuit site reads like military recruitment. "Trial experience and the willingness to take cases to verdict rather than accepting inadequate settlement offers." Translation: we'll drain you dry in court costs even if you win eventually.

The Questionable Claims

Not every lawsuit reflects genuine safety concerns. Roy Pearson sued a dry cleaner for $54 million over lost pants. The case became synonymous with litigation abuse before being dismissed. The McDonald's coffee lawsuit, widely mischaracterized as frivolous, actually involved 700 prior burn reports and coffee served at temperatures causing third degree burns in seconds. Context matters. Headlines don't provide it.

Automotive litigation follows similar patterns. Legitimate catastrophic injuries deserve compensation. But when juries award $36 million in future pain and suffering on top of $24 million for past suffering, insurance actuaries start calculating whether selling cars in certain jurisdictions remains viable. Pennsylvania's average car accident settlement recently hit $2.7 million according to one law firm's marketing materials. That's not the median. That's their advertised average, designed to attract clients by suggesting huge payouts.

The Industry Impact

A billion dollar verdict plus legal costs has to hurt. But does it hurt enough to change behavior? GM's ignition switch scandal killed at least 124 people. The company paid $120 million in settlements, a rounding error for a corporation generating hundreds of billions annually. Ford's Pinto exploding fuel tanks became legend. The company calculated that settling death claims cost less than redesigning the car. Financial punishment only works if the punishment exceeds profit.

Tesla recalled over 5 million vehicles in 2024, more than any other US manufacturer. Most were software updates requiring no physical intervention. But lumping software bugs with genuine safety defects creates a statistical mess. Did Tesla recall more vehicles because they're less safe, or because over the air updates allow them to fix problems other manufacturers would ignore until the next model year?

The Mitsubishi verdict being overturned on technicalities rather than merits reflects bigger problems. Francis Amagasu remains quadriplegic regardless of legal outcomes. The 1992 3000GT met contemporary safety standards. But 2023 juries applying 2023 knowledge to 1992 engineering creates impossible situations for manufacturers. At what point does compliance with regulations at time of manufacture provide protection from future liability?

The Cost Benefit Nightmare

Here's the uncomfortable reality: litigation costs are factored into vehicle prices before the first unit sells. Every manufacturer budgets for lawsuits. When jury awards climb, so do prices. When certain jurisdictions become lawsuit friendly, manufacturers consider leaving those markets entirely. That's not speculation. Several manufacturers have reduced dealership networks in plaintiff friendly states or stopped selling certain models where litigation risk exceeds profit potential.

Tesla's door issue represents genuine negligence worth punishing. The company prioritized aesthetics over safety, hid manual releases where panicked occupants couldn't find them, and continued production after multiple deaths. That deserves billions in punitive damages if anything does. But the Mitsubishi case shows juries awarding billions for cars that met every applicable standard at manufacture. One scenario holds companies accountable for known dangers. The other makes historical compliance meaningless.

The pendulum swings both ways. Too little accountability and you get Ford Pintos. Too much and you get endless litigation over 33 year old cars that met contemporary standards. Finding balance requires distinguishing genuine safety failures from opportunistic lawsuits exploiting sympathetic plaintiffs.

What Actually Helps

Require hidden manual releases to be clearly marked and intuitive. Mandate crash testing includes post collision door operation. Create standards ensuring emergency egress works without power. These are fixable engineering problems if regulations demand fixes.

Limit punitive damages to situations where manufacturers knowingly sold dangerous products. Adjust awards for inflation but protect manufacturers who met standards at time of production. Create expedited appeals processes for obvious jury instruction errors rather than forcing eight years of litigation.

Most importantly, distinguish between legitimate product liability and predatory litigation. Fifteen Tesla door deaths merit massive punitive damages. A 1992 Mitsubishi with a seat belt that met 1992 standards less clearly deserves billion dollar punishment 31 years later.

 

The ambulance chasers cost the industry billions. Some of that cost reflects legitimate accountability for deaths caused by prioritizing design over safety. Some reflects a legal system where jury awards bear no relationship to actual culpability. The challenge is distinguishing which is which before manufacturers decide certain markets or products aren't worth the litigation risk. If we keep suing auto makers for meeting contemporary standards, they might not stop making cars entirely. They'll just stop selling them where lawyers outnumber engineers in deciding what's safe enough.

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