Tesla Rejected $60 Million Settlement Agreement

According to Reuters, American electric vehicle manufacturer Tesla previously rejected a $60 million settlement offer related to a lawsuit involving a fatal crash of a Model S equipped with the "Autopilot" driver-assistance system in 2019. This month, a jury ruled on the case, ordering Tesla to pay $243 million in damages.

Model S; Image source: Tesla

The plaintiff's attorney disclosed this settlement proposal in a document submitted to the U.S. Federal Court in Miami, Florida on August 25. The document also serves as an application for legal fees from Tesla. The plaintiff's attorney stated that, under Florida law, they are entitled to request that Tesla pay the legal fees incurred since May 30, the date the settlement proposal was made.

Tesla and the lawyers representing the company in the case have not yet responded to requests for comment regarding the above report, and the plaintiff's lawyer has also not yet commented.

The focus of this trial is a car accident that occurred in April 2019: a 2019 Model S equipped with Autopilot crashed into a Chevrolet Tahoe that was parked on the emergency shoulder—the victim was standing next to the Tahoe at the time.

The jury ruled that the estate of the deceased Naibel Benavides Leon and her seriously injured boyfriend Dillon Angulo are entitled to a total of $129 million in compensatory damages, plus $200 million in punitive damages. Of this amount, Tesla is responsible for 33% of the compensatory damages (i.e., $42.6 million) and is fully liable for the punitive damages. Additionally, the jury found that the Tesla driver involved bears 67% of the compensatory damages liability, although he is not a defendant in this case.

Tesla has denied any wrongdoing and stated that the verdict "will only hinder development in the field of automotive safety and jeopardize the efforts of Tesla and the entire industry to research and apply lifesaving technologies." Tesla has made it clear that it will file an appeal.

The plaintiff's lawyer stated that this is the first lawsuit involving the death of a third party caused by Autopilot. Previously, Tesla had also faced several similar lawsuits related to its vehicle's autonomous driving features, but all of those cases ended in settlements or dismissals and did not proceed to trial.