Judge Orders Ford to Begin Settlement Talks
A California judge who found that Ford Motor Co. concealed a safety defect in millions of vehicles Friday ordered the auto maker to begin settlement talks, which could avert a statewide recall.
Ford faces a recall of 1.7 million cars and trucks that have been owned or leased by California consumers. A settlement could help the world’s No. 2 auto maker avoid the recall, and estimated costs of $150 to $170 per vehicle, as well as a new trial that is set to begin next year.
“This case cries out for a settlement,” Alameda Superior Court Judge Michael Ballachey said during a hearing. He ordered Ford and consumer attorneys to attend a settlement conference.
Last year, a 12-member jury fell one vote short of finding that Ford had concealed defects in an ignition part suspected of causing stalls. Ballachey then heard more evidence and this month issued the first court-mandated recall in automobile-industry history.
The order covers 1983 to 1995 Ford vehicles such as the Escort, Mustang, Taurus and Thunderbird. The recall would be unlikely to take place before next year since a court-appointed referee must still work out the details over how it would proceed.
“Assuming there’s not a settlement, I assume one of the first things Ford will do is file an appeal and ask for an immediate stay” on the execution of the recall order, said Thomas Moore, a product-liability attorney at Haight, Brown & Bonesteel who is not involved in the case.
“It’s not likely that a court of appeal will allow this to stand,” he said.
No date has been scheduled for the settlement meeting. Ford and consumer attorneys who sued the Dearborn, Mich.-based auto maker were ordered to appear before another state judge and then report back to Ballachey on Nov. 28 with an update on their progress.
Ballachey’s injunction comes as Ford is battling a public relations and legal war stemming from the recall of 6.5 million Bridgestone/Firestone Inc. tires, many of them mounted on Explorer sport-utility vehicles.
Shares of Ford rose 44 cents to close at $25.56 on the New York Stock Exchange.
