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Tesla seeks sanctions after dousing car fire suit

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Auzie

Tree Hugger Member
Jul 29, 2013
1,898
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Sydney
Tesla seeks sanctions after dousing car fire suit

Lawyers for Tesla Motors Inc. are seeking sanctions against two plaintiffs firms after a federal judge found a securities lawsuit they filed against the luxury car company "utterly failed" to plead an actionable claim.

"As this court recognized over and over, plaintiffs' allegations were either incoherent or devoid of any factual support," wrote the Irell team, "and some of those allegations were outright disproven by the cited documents or plaintiffs' own confidential witnesses. But plaintiffs ignored this evidence and pressed on with their baseless claims."

In their motion for sanctions, Tesla's lawyers said plaintiffs ignored "the fact that in each of the three alleged class period fires, the car operated exactly as designed by warning the driver to pull over, preventing the fire from spreading, and keeping all passengers unharmed from the fire—even the driver in Mexico who crashed his Model S into a concrete wall and a tree after driving over 100 miles per hour."The suit wasted court resources and forced Tesla to spend time and money defending frivolous litigation, the Irell team wrote. "If ever there was an appropriate occasion to impose sanctions and mandatory fee shifting under the [Private Securities Litigation Reform Act], this is the case."

Get them guys
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Even if they aren't successful, Tesla is making it clear they won't stand by and be defamed by frivolous suits. It sends a clear message that they will defend their safety record and I hope this discourages other baseless suits. It might reduce the likelihood of news sound bites saying "Tesla faces lawsuit over fire" which are reported even before judgement is made, regardless of how baseless the suit is.
 
Given all the negative press the fires themselves attracted originally (and for weeks thereafter in opinion pieces), it would only be fair if the news media ran with this story and trumpeted it from the highest ramparts, over and over again.
 
Coincidentally, TM twitted yesterday that Model S world-wide fleet exceeded 1B driven kilometers (625M miles). Counting the three fires involving the MS during this period, this works out to be one fire per 208M miles driven, which is based on the statistics used in Elon's blog post back in October of last year 10 times less likely than in gasoline car, and counting.

Tesla Motors (@TeslaMotors) | Twitter

Model S Fire | Blog | Tesla Motors
 
This is great news!

Even if they aren't successful, Tesla is making it clear they won't stand by and be defamed by frivolous suits.

Too bad Tesla didn't take this approach with that lemon law case.


I agree go get them but sanctions extremely hard to get. Asking fellow legal professionals to penalize them.

Sanctions are applied based on legislation and common-law principles and have nothing to do with whether "fellow legal professionals" are protecting each other, as this statement implies. I can show you numerous cases where judges have reamed out lawyers and applied sanctions for frivolous lawsuits.
 
Too bad Tesla didn't take this approach with that lemon law case.

The lemon law case was so clearly a case of lawyer trolling, that it would have done more harm than good for Tesla to pursue it. This case is different because it clarifies that there is no fire safety issue, and the harsh language of the judge made it really clear what was happening. I hope Tesla gets the sanctions.

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Smoke em! love the reference to the PSLRA and frivolous litigation comment. Wonder what Elons billable rate per minute?

It would have to be cut in half since half his time is at SpaceX :)