Legal Examiner’s annual compilation of the 10 most important civil justice stories of the year was created by Virginia Beach, VA, attorney-author Richard N. (Rick) Shapiro and his research assistants, a Legal Examiner year-end tradition since 2012.
Number 10 – Jury Orders Amazon to Pay $525 Million to Kove for Patent Infringement
Kove v. Amazon
Why It Made the List: This case centered on allegations of patent infringement related to cloud computing and data storage technologies. Kove IO, a company specializing in data storage and networking technologies, accused Amazon Web Services (AWS) of unlawfully using its patented technology in AWS products, particularly in Amazon S3 (Simple Storage Service).
Kove claimed that AWS infringed upon its patents, which cover innovations in distributed storage systems and methods for managing and retrieving data across large-scale networks. Specifically, Kove argued that AWS’s cloud storage services incorporate techniques and methods that are protected under Kove’s patents without proper authorization or licensing.
In its defense, AWS contested the validity of Kove’s patents, asserting that they were either invalid under U.S. patent law or that AWS’s technologies did not infringe upon them. AWS also challenged the scope of damages and remedies sought by Kove, arguing that the claims were overly broad or lacked sufficient basis.
The jury agreed with Kove that AWS infringed all three patents at stake in the litigation and ordered Amazon to pay $525 million in damages.
Source: Kove Wins $525 Million Judgment in Patent Infringement Case Against Amazon Web Services
Number 9 – NHTSA Fines Ford $165 Million
Why It Made the List: The National Highway Traffic Safety Administration (NHTSA) fined Ford Motor Company $165 million for failing to recall vehicles with defective rearview cameras promptly and for providing incomplete recall information. Following the Takata airbag case, this penalty is the second largest in NHTSA’s history.
The issue dates back to September 2020, when Ford recalled over 620,000 vehicles in the U.S. due to rearview cameras that could fail. NHTSA’s investigation revealed that Ford delayed these recalls and did not provide accurate information as required by the National Traffic and Motor Vehicle Safety Act.
As part of the consent order, Ford is required to pay $65 million upfront, with an additional $55 million deferred, and invest $45 million in performance obligations.
These obligations include developing safety data analytics infrastructure, building a test lab focused on low-voltage electronics, and reviewing all recalls from the past three years to ensure proper scope and compliance.
An independent third party will oversee Ford’s compliance with the consent order over three years, with the possibility of extension. Ford has stated its commitment to improving safety and compliance, indicating plans to invest in advanced data analytics and a new in-house testing facility.
Source: Ford agrees to pay up to $165 million penalty to US government for moving too slowly on a recall
Number 8 – Jury Awards $462 Million Verdict to Families of Men Killed in Truck Underride Crash
Perkins et al. v. Wabash National Corp., et al
Why It Made the List: In May 2019, Taron Tailor, 30, was driving a Volkswagen sedan on a Missouri interstate with 23-year-old Nicholas Perkins as a passenger when their car collided with the rear of a trailer that had stopped for traffic. The car slid underneath the trailer after the rear impact guard (RIG) failed, resulting in the immediate deaths of both men. The trailer was manufactured by Wabash National Corporation.
The men’s families filed a lawsuit against Wabash National Corporation, alleging that the company’s RIG design was defective and failed to prevent the underride crash. They argued that Wabash had ignored decades of research and warnings about the inadequacy of its two-post RIG design, which had remained essentially unchanged since 1985. Evidence presented during the trial indicated that Wabash did not conduct any testing on this RIG design from 1985 to 1996.
The plaintiffs contended that Wabash prioritized cost savings over safety by not adopting more robust RIG designs that could have prevented such underride incidents. They highlighted that implementing a safer RIG design would have cost approximately $313 per trailer and that Wabash’s failure to do so over 30 years saved the company about $15 million annually.
In September, a jury found Wabash National Corporation liable for the deaths of Tailor and Perkins and awarded their families a total of $462 million in damages, including $6 million to each family in compensatory damages and $450 million in punitive damages.
Source: St. Louis jury returns $462-million verdict for families of men killed in underride crash
Number 7 – Significant Win for North Carolina in Case Against DuPont
State of N.C. v. E.I. du Pont de Nemours & Co
Why It Made the List: The state of North Carolina sued E.I. du Pont de Nemours and Company (Old DuPont) and its corporate successors, including The Chemours Company, Corteva, Inc., and DuPont de Nemours, Inc. (New DuPont), alleging that Old DuPont’s operations at the Fayetteville Works facility in Bladen and Cumberland Counties led to the contamination of North Carolina’s environment through the use, manufacture, and discharge of per- and polyfluoroalkyl substances (PFAS).
PFAS, often referred to as “forever chemicals,” are synthetic compounds known for their persistence in the environment and potential health risks. The state contends that Old DuPont’s activities resulted in significant environmental contamination, posing health hazards to North Carolina residents. If you have not heard about the dangers of PFAS, you will hear more in the coming years.
A significant aspect of the case involved the corporate restructuring of Old DuPont. The state alleged that through a series of transactions, Old DuPont transferred its PFAS-related liabilities to Chemours and subsequently underwent mergers and spin-offs, resulting in the creation of New DuPont and Corteva. The state argued that these corporate successors should be held liable for the environmental damages caused by Old DuPont’s PFAS discharges.
In February, the North Carolina Business Court granted the state’s motion for partial summary judgment, concluding that Corteva and New DuPont had contractually assumed Old DuPont’s PFAS liabilities. This decision implies that if Old DuPont is found liable for the alleged environmental contamination, its corporate successors, Corteva and New DuPont, would also be held responsible for the associated liabilities. This ruling is significant in that it may become a precedent to prevent companies from creating “shell” companies to avoid paying damages.
Source: Order and Opinion Plaintiffs Motion for Partial Summary Judgment
Number 6 – Jury Hands Down $495 Million Verdict for Baby Formula Failure to Warn Risk
Margo Gill vs. Abbott Laboratories
Why It Made the List: This lawsuit centered on allegations that the cow’s milk-based infant formula, Abbott’s Similac, caused severe health complications in a premature infant who developed necrotizing enterocolitis (NEC) after being fed Similac. NEC is a life-threatening gastrointestinal condition that primarily affects premature infants, leading to severe intestinal inflammation and bacterial infection.
The lawsuit was filed by the infant’s mother, who argued that Abbott failed to adequately warn healthcare providers and consumers about the heightened risk of NEC associated with its cow’s milk-based formulas when used for premature babies. During the trial, the plaintiff’s legal team highlighted scientific evidence and research suggesting a correlation between such formulas and the development of NEC in vulnerable infants.
In its defense, Abbott argued that no definitive scientific proof links its preterm infant formula to NEC. The company also emphasized that its specialized formulas are part of the standard nutritional care for premature infants when human milk is unavailable.
In July, a jury ruled in favor of the mother, awarding $495 million in total damages — $95 million in compensatory damages and $400 million in punitive damages. The jury concluded that Abbott’s failure to warn about the risks associated with its product warranted substantial punitive damages.
The case was just one of a series of lawsuits filed against Abbott Laboratories and other formula manufacturers, including Reckitt Benckiser (maker of Enfamil).
Source: Abbott must pay $495 million in premature infant formula trial, jury finds
Stay tuned for the Top 10 Civil Justice Stories of 2024: Part II, including our pick for the year’s Number One Civil Justice story.
Rick Shapiro has practiced personal injury law for over 30 years in Virginia, North Carolina, and throughout the Southeastern United States. He is a Board-Certified Civil Trial Advocate by the National Board of Trial Advocacy (ABA Accredited) and has litigated injury cases throughout the eastern United States, including wrongful death, trucking, faulty products, railroad, and medical negligence claims. During his three-decade career, Shapiro has won client appeals before the VA Supreme Court, VA Court of Appeals, NC Supreme Court, SC Supreme Court, WV Supreme Court, TN Supreme Court, and three times before the United States Court of Appeals for the Fourth Circuit, underscoring Shapiro’s trial achievements. In addition, he and his law firm have won settlements/verdicts in excess of $100 million. His success in and out of the courtroom is a big reason why he was named 2019 “Lawyer of the Year” in railroad law in U.S. News & World Report's Best Lawyers publication (Norfolk, VA area), and he has been named a “Best Lawyer” and “Super Lawyer” by those peer-reviewed organizations for multiple years. Rick was also named a “Leader in the Law, Class of 2022” by Virginia Lawyers Weekly (total of 33 statewide honorees consisting of lawyers and judges across Virginia). And in September 2023, Rick was selected as a recipient of the National Board of Trial Advocacy (NBTA) 2023 President’s Award. Although many nominations were submitted from across the country, Rick was just one of eight attorneys chosen by the prestigious National Board which certifies civil trial attorneys across the U.S. Rick was also recently named to Virginia Lawyers Weekly 2024 Virginia’s Go To Lawyers Medical Malpractice. The attorneys awarded this honor are nominated by their colleagues and chosen by a panel from the publication.
