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CONFIDENTIAL

Jul. 27, 2004

Torts
Product Liability
Design Defects

Confidential

Settlement –  $1,640,000

Judge

Vincent P. DiFiglia

Court

San Diego Superior


Attorneys

Plaintiff

Patrick F. O'Connor

Kim H. Newbrough


Defendant

Ronald J. Lauter

Nannette B. Souhrada

John W. McConnell III

Randall L. Winet
(Winet, Patrick, Gayer, Creighton & Hanes ALC)

Steven R. Borer

Michael A. Paskowitz
(Winet Patrick Gayer Creighton & Hanes ALC)

Charles R. Grebing
(Wingert, Grebing, Brubaker & Juskie LLP)


Experts

Plaintiff

Edward L. Esteb
(medical)

Robert D. Tonks
(medical)

E. Lee Rice
(medical)

Nancy E. Markel Ph.D., APC
(medical)

Ramesh J. Kar Ph.D., P.E., FASM, FACFE
(technical)

Jerome C. Stenehjem M.D.
(medical)

William J. Previte
(medical)

Rod Grove
(technical)

Doreen Casuto RN, MRA, CRRN, CCM
(technical)

Richard D. Jones
(Jones Mayer) (technical)

John Cleary
(medical)

William R. Phelps
(technical)

J. Sterling Sterling Ford
(medical)

M. Daniel Close
(technical)

Defendant

Gary I. Fowler
(technical)

Kenneth Holko
(technical)

William P. Curran Jr.
(medical)

Robert A. Taylor
(technical)

Christine A. Baser
(medical)

Michael E. Fourney
(technical)

Jonathan A. Schleimer M.D.
(medical)

Kathleen McCann
(medical)

William Kenton
(technical)

Barry Schiff
(technical)

Kenneth S. Obenski
(technical)

Facts

In 1996, Goldstar Manufacturing, an Iowa corporation owned by Lloyd and Floyd Mefferd, manufactured a hydraulic cylinder. The cylinder was then sold to another Iowa manufacturer, which built it into an arm lift. That firm sold the fully-assembled arm lift to D&H Truck Equipment in San Diego. D&H installed the lift onto a van owned by Economic Lighting Technology in San Diego. In 1997, Goldstar's assets were sold to Kaydon Corp. in Ann Arbor, Mich. Goldstar and the Meffords were uninsured and had dissolved by April 6, 2000. On that date, James Irgens, 32, and his father Robert went to Economic Lighting to buy lighting equipment. Economic Lighting offered to sell James the van and arm lift and invited him to test-drive the arm lift. James got into the bucker, which was not equipped with the safety harness supplied by the arm lift manufacturer, and brought the lift to a vertical position. He then extended it upward. On the way down, the lift failed and the arm fell backward, tossing James approximately 30 feet onto the asphalt below. It turned out that the arm lift malfunctioned because a nut within the hydraulic cylinder had stripped off allowing the arm lift to fall.

Settlement Discussions

At a mediation presided over by retired Justice Howard Wiener of Private Dispute Resolution, Kaydon settled for $350,000; the arm lift manufacturer confidentially settled for $350,000; and the Meffords/Goldstar settled for $15,000. At a second mediation, the Irgens settled with Economic Lighting for $600,000. D&H settled for $325,000.

Damages

James claimed past medical expenses of approximately $200,000 and future medical specials for hardware removal, physical therapy, and back surgery (apportioned 50 percent to the pre-existing condition).

Injuries

James fractured his right hip, right femur, right patella, and skull (with bifrontal subdural hematomas) and exacerbated pre-existing neck and back symptoms. He claimed that he has not worked since the accident and does not plan on returning to his former job as a corporate co-pilot because of cognitive impairments.


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