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Takata, Honda Reach Settlement

Takata, Honda Reach Settlement Featured

The U.S. Bankruptcy Court for the District of Delaware has approved a bankruptcy plan carving out a trust for personal injury claimants against Takata and Honda as well as a second channeling agreement allowing for future claims in cases involving defective airbags. The airbags, at the center of the largest automobile recall in history, have been linked to at least 22 deaths and 180 injuries worldwide.One resolution is with TK Holdings Inc. and the other with Honda North America, Inc. The resolutions will be available to all U.S. personal injury and wrongful death victims. Plaintiffs have the option to opt out and file litigation through the tort system if they feel their claim is not fair.The estimated value of the trust is $90 million to $137 million. This amount may increase, but will not decrease. 
Once the trust is open, it would begin to accept claims in approximately mid-2018. Honda will pay 100 percent of compensatory damages without any credit for fault placed on Takata, third parties or the victims. Honda also has agreed to pay regardless of the age of the car or the expiration of a statute of limitations. Defenses that may be used in the tort system by an OEM, such as not acting on a recall letter or driving violations, are waived under this settlement. Additionally, the settlement values have punitive damages built in based on known, prior settlement values in other cases.
Last modified on Tuesday, 20 February 2018 02:40
Men Face Charges of Defrauding Auto Creditors

Men Face Charges of Defrauding Auto Creditors

Two Pennsylvania men have been indicted by a federal grand jury on charges of conspiracy to commit wire fraud and wire fraud involving straw buys from a used-car dealership.According to...

Auto Stocks Outperform Market

Auto Stocks Outperform Market

The Kerrigan Auto Retail Index (The KAR Index), a composite of the seven publicl...

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