You’ve probably seen news reports about the $243 million verdict against Tesla in a 2019 car accident case. The crash was catastrophic, killing a young woman and seriously injuring her boyfriend. The woman was thrown approximately 75 feet into a nearby wooded area. Still, the verdict is exceptionally large for a motor vehicle accident case. Here’s where that number came from, and what it may mean for similar auto accident cases.
What Was the Case About?
In 2019, George McGee says he was operating his Tesla Model S with Autopilot when he bent to retrieve a cell phone that had fallen on the floor of the vehicle. The vehicle ran a stop sign and collided with a parked SUV, killing one pedestrian and injuring another.
McGee admitted to being distracted by the phone, and the jury found that he was ⅔ responsible for the crash and for the $129 million in compensatory damages. But they also found that Tesla was ⅓ liable. That’s the $43 million in compensatory damages the company was ordered to pay. The remaining $200 million is punitive damages, which are awarded in only a small percentage of car accident cases.
In Florida, where the crash occurred, punitive damages may be awarded if the responsible party was grossly negligent or acted intentionally. The standard is slightly different in South Carolina, requiring wilful, wanton, or reckless conduct.
What Did the Jury Say Tesla Did Wrong?
Tesla’s basic Autopilot doesn’t brake for stop signs, but it can alert the driver. McGee testified that it was his belief that the vehicle would assist if he missed something or made a mistake. In fact, he says he mistakenly believed that the car would not just warn him but apply the brakes if he failed to stop.
Tesla says their owner’s manual warns drivers to remain attentive and to keep their hands on the wheel even when Autopilot is engaged. But the plaintiffs’ attorney argued–and the jury apparently agreed–that Tesla had acted recklessly. The plaintiffs’ team argued that the use of the term “Autopilot” was itself misleading, and that the company had failed to warn drivers not to use the technology on local roads when it was designed for use on highways with clear lane markings. They further argued that Musk’s own statements in the press and on social media had created a misunderstanding of the technology’s limits.
Will Tesla Actually Have to Pay $243 Million?
The company will undoubtedly appeal the verdict, and not just to avoid paying out $243 million. Tesla and other manufacturers of autonomous vehicles and those equipped with driver-assist features are concerned about the potential flood of lawsuits this type of decision could trigger. The decision in this case was particularly bad for them because the driver admitted that he was negligent in looking away from the road to retrieve his phone. The jury placed most of the blame on the driver, but still hit Tesla hard with punitive damages.
What Does This Mean for Victims of Self-Driving Car Accidents in South Carolina?
The full impact of the verdict and how higher courts will rule remains to be seen. And, of course, that case was decided under Florida law. South Carolina courts may rule differently. No one should assume that they’re going to recover hundreds of millions of dollars in a car accident case, whether a human driver or autonomous technology is at fault. Still, it’s interesting that the jury determined the vehicle manufacturer was partially at fault and that the company had acted recklessly despite the driver not using the technology as intended.
Hopefully, the verdict will put auto manufacturers on notice that they must be more clear and explicit about the limitations of their technology–this is not an area where puffery is a harmless sales tactic. At the same time, consumers operating vehicles with driver assist or autonomous features or considering purchasing such vehicles should invest the time and effort to fully educate themselves on what they can and cannot expect from the technology. That may take more work moving forward, as the Trump administration recently dialed back crash reporting requirements for these types of vehicles.
Injured in a Motor Vehicle Accident?
If you’ve been hit by a car or injured in a collision, you may be entitled to compensation. That’s true whether a careless driver, a defective vehicle system, or another party was to blame. In many cases, you can even recover partial compensation if you were partly to blame.
The best source of information about who may be liable for damages after a crash is an experienced Charleston car accident lawyer. You should consult an injury attorney as soon as possible after your accident, before the insurance company has an opportunity to talk you into a lowball settlement or trip you up in other ways.
You can schedule a free consultation with personal injury attorney Frank Hartman right now by calling 843-300-7600 or filling out our contact form. Get the information you need to protect your claim right away–there’s no cost and no obligation.