Gray•Duffy Obtains Favorable Settlement in a Serious Personal Injury Lawsuit

December 2011

Overview

Michelle MacDonald of Gray•Duffy’s Encino office obtained a favorable settlement in a serious personal injury case on behalf of a forklift repair shop for an amount less than the cost of defense of the matter.

Discussion

The plaintiff, an employee of Ralphs Grocery, was conducting quarterly inventory using a walk-behind forklift when he suddenly was pinned against the wall. After being rushed to the hospital, he underwent surgery to control internal hemorrhaging. He sustained serious internal crush injuries including a ruptured mesenteric artery and was hospitalized for several weeks and lost three months of work.

During litigation, the plaintiff alleged that the forklift repair shop represented by Gray•Duffy had negligently repaired the forklift three weeks prior to the incident. Specifically, he alleged that the throttle/control mechanism malfunctioned and the repair shop either failed to detect and repair a pre-existing problem and/or created a failure point while addressing other issues.

The plaintiff initially demanded $700,000, claiming past and future economic damages of approximately $100,000 and a workers compensation lien of approximately $200,000. During mediation, the plaintiff’s settlement demands never dropped below $500,000, while the workers’ compensation intervenor demanded $50,000.

After the mediation, the defense filed a Motion for Summary Judgment arguing that a repair shop such as the client did not have a duty to diagnose or repair any condition outside of the task directed by the machine’s owner, and that the plaintiff could not establish causation between the incident and any action or inaction by the repair shop.

After the Motion for Summary Judgment was filed, the parties engaged in further informal negotiations. Ultimately, the plaintiff settled for a total of $115,000, including the claim by the intervenor, who substantially compromised its workers compensation claim for $10,000.

Please Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.