Re: moto-extros

From: Brett Paatsch (paatschb@ocean.com.au)
Date: Mon Oct 28 2002 - 20:22:25 MST


Mike Lorrey wrote:
> I suggest you contact the risk management office at Suzuki, sending them
your
> findings along with suggestions for possible recall repairs.
>
> Since there were only 9000 vehicles made, it would be relatively cheap for
> Suzuki to announce a repair recall, far less costly than even the legal
fees
> of a liability lawsuit involving deaths. Furthermore, by notifying them of
> this, they would be legally compelled to do something, since they could
not
> deny that they knew anything was wrong with the design after you sent them
> your findings.
>
> I'd cc your communications with them to the NTSB if I were you. It doesn't
> sound to me like there is a major problem here, just a small problem with
> major possible consequences.

I agree with the thrust of this.

But I think you were also concerned about "Nader"izing (good word) the bike,
making it uninsurable at any speed. I think you saw that as a secondary but
still valid "good". So do I.

It may not be possible to avoid this now that the investigator (insurance
investigator not civil liabilities law firm employee I presume) knows of you
and your database.

I don't know how quickly insurance company's spread the word amongst
themselves about something like this, but I'd imagine that if only 9000
policies, and only 7000 in the US are being spread amongst multiple insurers
it may be better business for them to simply make the bikes uninsurable
(just refuse to insure them or jack up the price enough to achieve the same
effect) rather than set up a separate actuarial and business process whereby
they take account of whether repairs to the know fault have been effected.

Perhaps, you might get a better chance of getting insurance if one insurance
company thought they could corner a niche market. Known problem, available
solution, 9000 policies or so worldwide, 7000 in the States. That one
company might see it as worth its while if the fix was solid AND they
thought they could get nearly all the policies. I wonder if you could get
you bike buddies to consolidate their buying power and agree to go to one
company. Know any actuaries that work for an insurance company?

Also, I'm not a lawyer nor based in the US so I don't have expertise here,
but I would definitely be inclined to do something, inform someone, (which
you are clearly doing) because it may be that your special knowledge of a
life threatening situation may create a legal duty on you to take
"reasonable" action. In your shoes I'd brief a lawyer at least as well as
you briefed this list as a precaution.

Brett



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