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CONFIDENTIAL

Feb. 1, 1997

Personal Injury
Product Liability
Power Press

Confidential

Settlement –  $700,000

Facts

On Jan. 13, 1994, the plaintiff, a 32-year-old press operator employed by the defendant employer, sustained a traumatic amputation as a result of a crush injury to four fingers and part of the thumb from his right dominant hand. The press engaged in a repeat or unintended stroke while the plaintiff's hand was in the point of operation. After the accident, it was determined that the anti-repeat/anti-tie-down timer, which was installed to prevent repeat or unintended strokes, was wired incorrectly and as such, the press would go through an unintended cycle every morning when the machine was powered up. The incident occurred after the plaintiff returned from lunch and was in the process of placing a piece of steel in the die area. At the time of the incident, the machine was installed with dual palm button controls as a means of activating the press. The press was manufactured and sold in 1948 by the defendant manufacturer. In 1990, the defendant used machinery dealer purchased the press and performed substantial modifications. The defendant used machinery dealer then sold it as used equipment to the defendant employer in January 1993. The modifications that the defendant had made included, among others, the installation of dual palm-button controls. Before the press was sold to the defendant employer, the defendant employee of the defendant electrical company, was hired by the defendant used machinery dealer to perform the electrical wiring to the controls. This included the wiring for the anti-repeat/anti-tie-down relay. In addition, after the press was sold, the defendant electric company employee went out to the defendant employer at the request of the defendant used machinery dealer in regard to a complaint that the press was not operable and the defendant electric company employee replaced the relay designed by the defendant designer on the press. The plaintiffs, the employee and his wife, brought this action against the defendants based on violation of Labor Code º4558 negligence, design defect, product liability and loss of consortium theories of recovery.

Settlement Discussions

The parties engaged in numerous demand and offer exchanges.

Specials in Evidence

$190,000 $30,000 $ _______ $25,000

Injuries

The plaintiff husband sustained an injury to his right dominant hand, resulting in five surgical procedures.

Other Information

The settlement was reached approximately two years and six months after the case was filed. A three-day settlement conference was held one week before trial before Judge Plotkin resulting in the reported settlement. The case was concluded by way of a compromise and release agreement before the civil settlement. The defendants paid the workers' compensation carrier $3,000 in full satisfaction of the $350,000 workers' compensation lien.


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