In a groundbreaking legal victory, victims of a fatal Tesla autopilot car accident have won their case for the first time. On Friday, a jury in Florida ruled that Tesla must pay $243 million in compensation to the estate of Naibel Leon and her ex-boyfriend Dillon Angulo, who were involved in the tragic incident.
According to the court ruling from the federal court in Miami, the victims’ estate and Angulo were awarded $129 million in compensatory damages and $200 million in punitive damages.
Tesla is required to pay 33% of the compensatory damages, amounting to $42.6 million, in addition to the $200 million in punitive damages.
The jury found that driver George McGee was 67% responsible for the accident, but since he was not a defendant, he is not liable for any compensation.
In a statement, plaintiff attorney Brett Schreiber stated, “Tesla designed autopilot solely for controlled highways but deliberately chose not to restrict drivers from using it elsewhere, while Musk told the world autopilot is better than human driving.”
“This verdict brings justice for Naibel’s tragic death and Dillon’s lifelong injuries,” he added.
Tesla has announced plans to appeal the ruling, asserting that the judgment is erroneous and could setback automotive safety efforts and the development and implementation of life-saving technologies.
The plaintiffs had sought $345 million in compensation. Their lawyers noted that this trial marked the first instance of a judgment involving third-party non-natural death caused by autonomous driving.
Tesla has faced multiple lawsuits related to its vehicles’ autopilot features, but most cases were resolved or dismissed before reaching trial.
In June of this year, a judge rejected Tesla’s motion to dismiss the Florida case. Experts suggest that Friday’s verdict could encourage more lawsuits against Tesla and potentially result in higher settlement costs in the future.
Alex Lemann, a law professor at Marquette University, stated, “This case holds significant importance as it marks Tesla’s first penalty in numerous accident lawsuits involving autonomous driving technology.”
Elon Musk, the world’s richest person, has been actively promoting Tesla’s recent foray into robot taxi services and plans to begin production of fully autonomous driving robotaxis next year. However, this ruling may impede his efforts to convince investors.
With electric vehicle sales declining, Tesla’s nearly $1 trillion market value will heavily depend on Musk’s ability to steer the company towards robotics and artificial intelligence.
The case in question dates back to an accident on April 25, 2019. George McGee was driving his 2019 Model S at around 62 mph when he collided with the victims’ parked Chevrolet Tahoe as they stood beside the vehicle.
McGee was reportedly reaching for his phone inside the car and failed to receive any warnings to stop or for a red light before crashing into the victims’ SUV.
Naibel Leon was thrown 75 feet to her death, while Dillon Angulo sustained severe injuries.
Philip Koopman, an engineering professor and autonomous technology expert at Carnegie Mellon University, remarked, “We have an imperfect driver, but the jury still found Tesla liable for the accident.”
He added, “The only possible reason the jury could find Tesla at fault is if they discovered a flaw in the autopilot software. This is significant.”
Tesla countered in its statement, attributing the accident solely to driver error by McGee.
The company stated, “Clearly, no car in 2019 or today could have avoided this crash. This has nothing to do with autopilot; it is a fabrication by the plaintiff’s lawyers placing blame on the vehicle despite the driver acknowledging and accepting responsibility from day one.”
Tesla’s stock price fell by 1.8% on Friday, marking a 25% decline year to date.
(Reuters contributed to this report)