Facts

In summer 2005, Corey Rudl, a 34-year-old Internet entrepreneur, was driving a Lamborghini around the track at the California Speedway in Fontana, at an event put on by the Ferrari Owners Club of San Diego. During warm-up laps, his Lamborghini overheated. Ben Keaton, 39, offered Rudl a ride in his Porsche Carrera GT.

During their first lap, they rounded a corner and hit the straightaway at 130 mph, approaching a Ferrari going much slower. Keaton swerved and lost control, careening across the asphalt, into a concrete wall. Rudl was killed instantly and Keaton, airlifted to a hospital, also died. Rudl and Keaton had both signed waivers earlier.

Corey Rudl's wife and parents brought suit in 2005 alleging that Driving Ventures (hired by Ferrari Owner's Club, not California Speedway, to provide stewards for the event) and Ferrari Club had not done enough to make the track safe and that Porsche was negligent in failing to equip the Carrera with an electronic stabilization system. Plaintiff further claimed that Ferrari Club had been warned of problems with the Porsche in the past by a mechanic, and also that the design of the track was a factor in Keaton and Rudl's deaths. The defendants denied Rudl's allegations.

The Estate of Benjamin Keaton, the Ferrari Club, the Ferrari's driver, California Speedway, Driving Ventures and the Porsche defendants settled prior to trial.

Result

Settlement whereby the defendants will pay $4.5 million (the Estate of Keaton will pay $2,250,000; Ferrari Owner's Club, California Speedway and Driving Ventures will pay a combined $1,750,000; Porsche will pay $350,000 and Joe Sposato will pay $125,000).

Other Information

FILING DATE: Dec. 20, 2005.