Ford Motor Co. Has Settled For $3.5 Million A Federal Lawsuit In Which An Horry County Man Claimed A Defective Latch

Yahoo Press Release, Jul 07, 2005

Ford Motor Co. has settled for $3.5 million a federal lawsuit in which an Horry County man claimed a defective latch on his F-150 pickup truck resulted in his being severely and permanently injured. A two-year court order requires such settlements be open — as opposed to sealed secretly — in federal courts in South Carolina. As a result, the S.C. settlement may be the first publicly disclosed payout that Ford has made in defective latch cases around the nation, according to lawyers Ed Bell of Georgetown and Kevin Dean of Charleston’s Motley Rice Law Firm. Last year, Ford settled a similar case alleging a defective latch in Texas. But in that case, a judge — acting at Ford’s request — ordered the amount of the settlement kept secret. In the Texas case, two women died after their F-150 rolled over. In the Texas and S.C. settlements, Ford denied all liability. “All vehicles manufactured by Ford do meet all applicable standards,” Ford spokeswoman Kathleen Vokes said last week. She said Ford wanted the settlement amount sealed in Texas because it was “standard procedure in all agreements that Ford is involved with,” except in South Carolina. Whether to make public or seal settlements in lawsuits concerning public safety is a controversial topic. Secret settlements are allowed in most states. But advocates — including plaintiffs’ lawyers — say secrecy harms the public. Citizens can learn about the seriousness of a problem from the dollar value of a settlement, they say. Two years ago, Ford easily could have had its S.C. settlement sealed. It also could have asked the judge to bar all parties to the lawsuit from disclosing the settlement. But in late 2002, federal judges in South Carolina, acting on a proposal by U.S. District Chief Judge Joe Anderson, banned all secret settlements in matters concerning public safety. State judges enacted a similar rule. Since then, South Carolina has gained wide attention for being a national leader in court openness. Most states allow judges to seal settlements, even though the secrecy might keep the public ignorant of matters that pose a threat to citizens. In the last two years, more than 50 federal court settlements in South Carolina have been made public that, in the past, would have been sealed, Anderson estimated last week. He said no one has done a precise count.