(The opinions expressed here are those of the author, a
columnist for Reuters.)
By Jenna Greene
Nov 20 (Reuters) - "This is not our first rodeo."
So said plaintiffs' lawyer Brett Schreiber, fresh off a $243
million win against Tesla before a Miami jury, who was squaring
off against the automaker at a hearing Monday over another
wrongful-death lawsuit.
Schreiber, co-founder of plaintiffs' firm Singleton
Schreiber, is suing Tesla in San Francisco federal court on
behalf of the family of a California man who died in a 2023
crash that occurred when the car's Autopilot system was
allegedly engaged.
Already, he and Tesla's lawyers at Nelson Mullins Riley &
Scarborough are sparring over discovery. Schreiber sought court
permission to share confidential information from Tesla with
other plaintiffs' attorneys litigating similar self-driving tech
cases against the automaker. In an early win for the company,
the judge denied his motion at the preliminary hearing and asked
the parties to come back with revised proposals - but more on
that later.
Schreiber told me that, by his estimate, at least 20
lawsuits have been filed to date by people who blame Tesla for
crashes that allegedly occurred while the vehicles were in
Autopilot mode. Most of the cases have been resolved or
dismissed before trial.
Schreiber was the first to prevail before a jury. Three
months ago, jurors in Miami federal court found Tesla partly
responsible for a 2019 fatal crash involving an
Autopilot-equipped Model S. They awarded $129 million in
compensatory damages plus $200 million in punitive damages.
Tesla, which has denied wrongdoing, has said it will appeal
the verdict. A Tesla spokesperson did not respond to requests
for comment on the case or other litigation related to the
company's self-driving technology.
Tesla lawyers have argued that driver error is to blame for
the crashes. The Autopilot system, which can steer, accelerate
and brake by itself, doesn't make the cars autonomous and
requires a "fully attentive driver" who can "take over at any
moment," Tesla warns its customers.
Those arguments carried the day for Tesla in the first two
Autopilot-related cases to go to trial, both heard by California
state court juries in 2023.
Schreiber's San Francisco complaint, which was filed last year,
makes arguments that echo the Miami case. The suit alleges Tesla
has "continuously misrepresented its cars' ability to provide
safe, autonomous driving" and that the Autopilot design is
defective.
In 2023, 33-year-old Genesis Giovanni Mendoza Martinez was
killed while driving his 2014 Model S on a Bay Area freeway
early in the morning, and his brother Caleb was injured. The car
crashed into a parked firetruck that had stopped to respond to
another incident.
In moving to dismiss a swath of the case earlier this year,
Tesla argued that the suit "represents a deeply flawed attempt
to take products liability and fraud law where it has never gone
before." Company lawyers said that alleged misrepresentations
about self-driving technology from CEO Elon Musk - for example,
he said Autopilot was "probably better" than human drivers
- were not actionable because they were either opinions or
predictions about the future.
In a May ruling, U.S. District Judge Vince Chhabria kept the
claims alive.
"It can be reasonably inferred that Musk - the CEO of a
major car company who repeatedly told investors and press that
his company's cars would soon be fully self-driving- had special
knowledge about the subject," Chhabria wrote.
As the litigation gets underway, discovery has been a hot
spot.
Schreiber asked the court to issue a protective order that would
include a provision allowing him to share materials he gets from
Tesla with other plaintiffs' lawyers litigating Autopilot cases
against the company. Such an order would allow him to provide
information such as design and engineering materials related to
the Model S.
Sharing provisions can promote efficiency when the same
information is repeatedly sought in multiple suits, Schreiber
argued, noting that Tesla "routinely agreed" to such terms in
the early years of the Autopilot defect litigation.
Tesla lawyers opposed the move, objecting in court papers to
"Plaintiffs' attorneys' aspirations to become a clearing house
of Tesla trade secret information."
Tesla said the trade secret design and engineering
information relevant to the case "is still of significant
commercial value, and Tesla goes to substantial lengths to
protect that information from disclosure."
If other litigants want information, they should first have
to show it's specifically relevant to their case and ask the
court for access, they said.
Similar spats over plaintiffs' lawyers' requests to share
evidence gleaned in discovery have arisen in other mass tort
cases. For example, plaintiffs' lawyers in litigation over
alleged sexual assaults by Uber drivers sought court permission
to use confidential documents obtained in other cases involving
the ride-sharing company, as I wrote last year, with mixed
success.
Schreiber has another ongoing Autopilot case against Tesla in
San Diego and settled a fourth case in the Northern District of
California in September.
In an interview, he noted that Tesla was hit with
"substantial" sanctions for discovery abuses in the Miami case,
though court records detailing the episode are sealed. Sharing
provisions are a way to make sure the relevant materials are
made available in every case, Schreiber said.
U.S. Magistrate Judge Lisa Cisneros largely agreed with
Tesla. Ruling from the bench on Monday, she denied Schreiber's
proposed sharing provision but added, "I don't think that
entirely resolves the issue."
She directed the parties to meet and confer and come back
with a revised proposal for how lawyers in other cases might
seek information from them. Still, she cautioned that the court
should have some role in reviewing what's disclosed, she said,
"as opposed to free-for-all sharing."