Jury Awards $242 Million in First Verdict Against Tesla

The jury trial I wrote about several weeks ago has come to a conclusion, with the jury finding Tesla liable in the death of Naibel Benavides Leon. Notably, the jury concluded that the driver, George McGee, was 67% responsible for the crash, while Tesla was 33% responsible. Nonetheless, Tesla will be required (pursuant to a judgment entered yesterday) to pay more than $42 million in compensatory damages and $200 million in punitive damages.
The verdict may not survive appeal or may be reduced. Still, the result is a major vindication of the plaintiff’s theory of defect against Tesla, and ought to put the company on notice that its “blame the driver” litigation strategy may not hold water with juries.
Tesla was able to demonstrate at trial that the driver’s distraction was a significant factor in this case (in the language of 1L torts, a but-for cause). McGee dropped his cellphone and was looking for it on the floor of his car when he ran a stop sign at 65 miles per hour and crashed into a parked Chevy Tahoe. Tesla sought to pin blame for the crash on him, arguing that no level 2 driver assistance system could have prevented it. To some extent this worked, as shown by the jury’s finding that McGee was 67% responsible for the incident (he was not a defendant in the case, having previously settled plaintiffs’ separate case against him).
