Facts

On Jan. 24, 2008, Jose H. Lugo, 56, was working in a steel yard owned by defendant California Steel Industries (CSI), a company recognized as one of the largest steel companies in the nation. While Jose was outside of his tractor-trailer monitoring a crane that was loading scrap metal into his trailer, defendant Larry Kirkland, who was backing up his tractor-trailer to have his scrap metal unloaded, ran over Jose. Kirkland Enterprises Inc. (KE) owned the tractor-trailer that Larry Kirkland was driving. It was not equipped with a backup alarm that would have sounded to warn Jose when it was backing up.

Advanced Steel Recovery (ASR) controlled the daily activities in the steel yard and had no policies to guide the truck drivers where to stand while their trucks were being loaded with scrap metal and failed to properly direct traffic during the back-up process.

Plaintiffs sued defendants ASR, CSI and KE, and Larry Kirkland for wrongful death and negligence.

ASR then brought suit against Peterbilt Motors Company, the manufacturer of the KE tractor-trailer and Charter Sales Company who sold the trailer.

ASR contended that Peterbilt and Charter Sales placed a defective tractor-trailer into commerce that did not have a required back-up alarm.

CSI brought a cross-complaint against Jose Lugo's employer, A. Rivera Trucking, for implied and express indemnity.

Settlement Discussions

Plaintiffs demanded $2 million from ASR and $1 million from KE. No formal demand to CSI was made. The co-defendants dismissed the remaining defendants without any contribution to the settlement.

Injuries

Jose Lugo sustained multiple crush fractures to his right leg, and abdomen area. He sustained a distal thigh compression and degloving injury with necrotic tissue (dead tissue and muscle). As a result of the trauma and amputation of his leg up to his abdomen, he died 10 days later of heart failure.

Result

The case settled for $4,466,532.

Other Information

State Compensation Insurance Fund, the insurance carrier for A. Rivera, paid $510,827 for benefits paid to the decedent's family. State Fund filed a complaint-in-intervention seeking reimbursement for the benefits paid and the lien was settled for $150,000. The cross-complaint against A. Rivera Trucking was dismissed for a waiver of costs. Before trial, all defendants settled except for Larry Kirkland and KE. The case went to trial in Aug. 2010, and after three weeks of trial, a defense verdict was reached. The jury found negligence, but did not find causation. Plaintiffs' JNOV and motion for new trial for jury misconduct and providing improper jury instructions was granted. The new trial was to be for damages only. Minor's compromise hearing is set for June 22, 2011. INSURER: Williamsburg National Insurance Company insured KE; Tokio Marine & Nichido Fire Insurance Co. Ltd., insured CSI; Ace Property and Casualty Insurance Company insured ASR.