Honda’s Win Streak Runs Out of Gas>

You knew it had to end.

In March, California Law Business reported that Honda North America, based in Torrance, had not lost a single product liability case since January 1994 – a total of 30 trials. Since then, that number jumped to 34 cases.Then, it stopped.

Before trial, Honda’s lawyers sent Mr. Bennett of Bennett, Broocks Baker & Lange, a list of its success to persuade him to settle. “Honda has obtained 22 product liability defense verdicts in 1994 alone. This means that IF we decide to go to trial, based on our evaluation of the case, you and your client will likely incur greater risk than you may have in previous year, ” outside counsel Wayne Prescott, partner at Austin’s brown McCarroll & Oaks Hartline, wrote in a Nov. 9, 1994 letter.

Mr. Bennett balked and took his chances at a 21-day trial.

The battle’s not over, says Terry Draut, managing counsel for Honda North America. The company plans to appeal. It’s met with success before. In two of the 30 cases in its 30 – 0 record.

Honda appealed initial plaintiff’s verdicts – once all the way to the U.S. Supreme Court. Both efforts proved fruitful.

8 / Monday June 26, 1995

Bennett said that when Honda offered his clients $900,000 before trial, the company said it had won 22 similar cases in 1994.>

Honda was represented by Richard McCarroll, a name partner in Austin’s BROWN McCARROLL & OAKS HARTLINE and Eduardo Roberto Rodriguez, a name partner in Brownsville’s RODRIGUEZ, COLVIN & CHANEY.

The verdict broke McCarroll’s string of wins defending Honda three-wheelers. He won defensive verdict in three previous cases and said a fourth was settled favorably. McCarroll said Honda has several issues to raise on appeal, including venue. The accident occurred in Mexico, and Barrera lives in Starr County.

McCarroll said the only connection to Hidalgo County was that the man who allegedly owned the vehicle lived there. But McCarroll said the man has said he did not own the ATV at the time of the accident.

Ramirez also allowed evidence that has been excluded from other cases, including testimony about a consent decree signed by Honda and the Consumer Product Safety Commission in 1988 stopping the sale of all three-wheelers.

The plaintiffs called as a witness former CPSC Commissioner Stewart Statler, who warned the public in 1985 about the dangerousness and instability of the vehicles.

The defense called Honda’s design engineer, who said the vehicles were not defective.

-JANE ELLI0TT