Tesla is challenging a court ruling earlier this month that found the automaker partly responsible for a fatal 2019 crash in Florida involving its Autopilot system. Following the jury decision, the automaker has now asked a federal judge to either throw out the $243 million verdict or order a new trial, arguing the damages awarded were excessive and that the driver was solely responsible for the collision.
Background of the Case
The case stems from a tragic accident in Key Largo, Florida, when George McGee, driving a Tesla Model S with Autopilot engaged, struck 22-year-old Naibel Benavides and her boyfriend, Dillon Angulo. Benavides was killed instantly, while Angulo sustained life-altering injuries. McGee admitted he had dropped his phone and looked away from the road moments before the crash, assuming the vehicle’s software would react in time.
Earlier this month, a Miami federal jury awarded $329 million in damages, assigning Tesla 33% of the liability and McGee 67%. Tesla’s share of the award came to $242.5 million. The verdict marked the first time a federal jury has held Tesla accountable for a wrongful death involving Autopilot, creating a potential precedent for future litigation.
Tesla’s Appeal
Tesla’s attorneys from Gibson Dunn argue the jury’s decision was flawed. They maintain that the Model S had no design defects and that the accident was “entirely the doing of a reckless driver who ignored or overrode every safety feature in his car.”
The company is asking the court to reduce compensatory damages from $129 million to $69 million, which would slash Tesla’s payout to around $23 million if the verdict is upheld, the New York Times reports.
The automaker also contends that punitive damages should either be eliminated or reduced under Florida’s statutory cap, which typically limits such penalties to three times compensatory damages. In its motion, Tesla warned that allowing the jury’s decision to stand could “chill innovation, harm road safety, and punish manufacturers for bringing advanced safety features to market.”
Missed Settlement Opportunity
Court filings revealed that before the trial, Tesla rejected a $60 million settlement offer from the plaintiffs. Instead, the case proceeded to trial, ultimately resulting in a verdict nearly four times greater than the proposed settlement.
