Grimshaw V. Ford Motor Company Essay

Facts1. get over developed a new model, later to be known as the pinto, changing the design drastically. 2. Ford discovered that the render tanks position was in a vulnerable place and the car failed to met resolve safety standards. 3. Ford was aware of the small cost to help the burn down tanks meet standards but refused to use them due to the slight delay in take that might occur and approved production of the prototype. 4. A 1972 Ford Pinto was involved in a rear ending when it unexpectedly stalled coif the care (presumably the supply tank) to burst into flames. 5. A Mrs. Lilly Gray was died as resolve and her son 13 year-old Richard suffered severe and permanently disfiguring burns to his face and whole body.Legal Procedure/History1. Grimshaw sued the Ford Motor Company for retributive damages. 2. Grimshaw awarded damages in the amount of about $3.5 million. 3. Ford hails retributive damages. 4. address is denied and decision to award punitive damages up held.Issue s (Holdings)1. Did Ford viewing malice which is necessary to establish in order to award punitive damages? (Yes) 2. The punitive damages awarded are too blue for ongoing Californian law, is this unlawful? (No)Reasoning1. Malice has been also interpreted to squiffy a conscious disregard of the luck that the actors digest will result injury to others. 2. Although higher(prenominal) than monetary penalties under politics regulations, the punitive damages are to prevent unattackables in the coming(prenominal)(a) from handle safety and possible negative consequences.Rule of Law1. The primary terra firma for having and awarding punitive damages is to punish and deter the conduct by wrongdoers and others.Your Response I completely agree with the decision.Questions1. Punitive damages were awarded due to the fact that Ford was found to have acted with malice in regards to their production of the Pinto. It has been also interpreted to mean a conscious disregard of the probability t hat the actors conduct will result injury to others. And this is simply what Ford did when they disregarded the fuel tank findings and refused to add the safety precautions to the fuel tank. Although higher than monetary penalties under government regulation, the punitive damages were high in order to set an example so that firms in the future would be deterred from disregarding safety and possible negative consequences when producing their products.2. Although the cost is higher than the saving in the short run I believe it would be to Fords benefit to take on the cost of adding the surplus safety measures due to the fact that in the long run with to a greater extent and more deaths attributed to what could be called the greedy, callous nature of Ford, sales could decrease. By absorb the $137.5 million and allowing the world to know of Fords action (due to our tie in over their safety) could possibly generate a good amount of future sales. On the other hand should the public d iscover that deaths could have been prevented public trust in the confederation could decline causing Fords sales to suffer the same fate.3. First the actual ready of Holmes slash should be verified, if it was indeed due to the tires, then yes he should be allowed to appeal for a trial. 4. First of all, even though they bare the heaviest blame (in my opinion) they werent the only ones responsible for the advancement of the Pintos design. Putting them in put to sleep would just use up way for Ford to replace them with others who could potentially make the same decision. It would also be sending the message to other firms officers to make sure that they arent the ones holding the bag at the end of the day.This only put a few in the manufacture on guard. Having the constitutional company pay punitive damages causes the entire industry to be on guard and makes all within the company liable. On the other hand, having to pay such exorbitant amounts could potentially cause a company to go out of business or cause them to downsize (fire employees to save money) effecting all that work there, whether or not they were involved in the design and decision making process. (I.e. they could fire janitors that work at their offices.)