GM victims to donate half of award
LOS ANGELES (AP) - Recalling her anguished struggle to get help for her
children after a fiery car crash, a mother said Monday nearly half of a $4.9
billion product liability judgment against General Motors Corp. would be
used to help other burn victims. Patricia Anderson, her four children and
family friend Jo Tigner were severely burned when their car was struck from
behind and exploded in flames in a Christmas Eve 1993 collision. A jury
awarded the family $107 million in compensatory damages and $4.8 billion in
punitive damages Friday - the largest amount ever awarded in a defective
product case, legal experts have said. Half of the punitive damages, which
totaled $4.8 billion, will be donated to the state of California to help
build new burn centers or expand those already in operation, Anderson said.
Experts expect courts to reduce the award. If the award were to stand, the
verdict could have a serious impact on General Motors. The amount exceeds
GM's profits of $3.1 billion in all of 1998, a year in which earnings were
hurt by strikes. In 1997 the company earned $6.3 billion. So far, the
verdict has had little effect on GM stock. During the 10-week trial,
attorneys argued GM knew its gasoline tanks were unsafe, but believed it was
cheaper to settle claims than recall the cars for safety upgrades. General
Motors contends the car was safe and the accident was the fault of a drunken
driver who hit the car while going 70 mph. ###
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