Honda in Hot Water for Failing to Report More Than 1,700 complaints
A multitude of reports and investigations into the auto industry throughout 2014 led to millions of dollars’ worth of fines and recalls. That trend is continuing in 2015, as Honda has just been fined $70 million for failing to report 1,729 injury and wrongful death claims stemming back as far as 2003. The fines come from the National Highway Traffic Safety Administration (NHTSA); it is the largest civil fine ever levied against an auto company in history.
The NHTSA report states that Honda failed “to report deaths, injuries, and certain warranty claims to the federal government” as well as “early warning reports identifying potential or actual safety issues.” As a result, “Honda also agreed to increased NHTSA oversight and third party audits to ensure that all required reporting is completed now and into the future.”
There is no word yet whether the Department of Justice will pursue a lawsuit against Honda. If it does, and if that lawsuit is successful, Honda could face fines in the billions.
What this could mean for the future
This is a monumental win in the crusade for justice for the American people. For far too long, auto makers have been playing fast and loose with the rules when it comes to driver safety. They have been complicit in keeping court documents secret, and have used the laws to benefit them as opposed to their customers. It is fitting, perhaps, that the NHTSA found a work-around when it comes to fining the company: because Congress only allows the NHTSA to fine a company up to $35 million per claim, the NHTSA simply chose to fine Honda twice, allowing them to double the amount of money the company must now pay.
This response from the NHTSA is much-needed and long overdue. The New York Times ran a scathing front-page article in September of 2014 (covered by Public Justice) pointing out a series of missteps taken by the NHTSA when it comes to investigating reports of vehicle defects against companies such as Honda, Chrysler, Toyota and General Motors. Fining Honda may not be proof of the effectiveness of the department, but it may go some way in helping the NHTSA repair its poor reputation among those who value human lives above profits.
Paulson & Nace, PLLC protects personal injury victims in the Greater Washington, D.C. metro area and throughout West Virginia. If you have questions about the lawsuits against Honda, or if you suffered a serious injury because of a known vehicle defect, please contact our office to learn more.
Christopher T. Nace works in all practice areas of the firm, including medical malpractice, birth injury, drug and product liability, motor vehicle accidents, wrongful death, and other negligence and personal injury matters.
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