Monday, November 12, 2007

Lycoming Escapes $96 Million Judgment

Last week, a Texas appeals court upheld key portions of a 2005 jury verdict against Lycoming, but set aside a lower court’s order that Lycoming pay $96 million in damages to Interstate Southwest Ltd. of Navasota, Texas. The latter company manufactured what turned out to be defective crankshafts for Lycoming. The cranks in question have failed in flight at least 24 times, leading to the deaths of 12 people.

The lower court found (and last week's ruling upheld the fact) that Lycoming's engineering was at fault, not Interstate's manufacturing process. Moreover, Lycoming was held to have fraudulently concealed information from Interstate. Nevertheless, the "exemplary damages" judgment of $96 million against Lycoming has now been struck down based on deficient evidence. Interstate still gets $10 million in "actual" damages. See http://www.pbn.com/stories/28235.html.

2 comments:

Matt Barrow said...

From what you know, can you tell if it was faulty design or faulty process?

My experience is that courts (lower or superior)couldn't figure out how to wife their backsides....

Kas Thomas said...

I confess I have not researched it in detail. The courts seem to think it was faulty design.