Navistar To Pay $31 Million To Trucking Company In Defective Engine Case
A Tennessee jury unanimously decided to award a trucking company nearly $31 million after it found that Navistar committed fraud by selling the company hundreds of trucks with known engine problems.
Jury Rules In Favor Of Tennessee Trucking Company
Last week jurors sided with Tennessee-based trucking company Milan Supply Chain Solutions, agreeing with the company’s claims that Navistar was dishonest with them when it sold them 243 International Prostar trucks with defective MaxxForce 13 engines. The jury found that Navistar had committed fraud and was in violation of consumer protection laws.
The jury awarded Milan Supply Chain Solutions $10.8 in actual damages and $20 million in punitive damages.
Lawsuit: Navistar Failed To Test MaxxForce 13 Engines Properly
Attorneys representing Milan Supply Chain Solutions in their lawsuit against Navistar claim that the company failed to properly test the engines before putting them up for sale. According to a release from the law firm representing Milan, “During the trial, numerous executives testified either live or by deposition. Former Senior Vice-President of North American Sales Jim Hebe testified that Navistar “did not test s#@t“, explaining that Navistar failed to follow industry standards and never tested the final version of the engine before selling it to customers.
The suit against Navistar alleges that the company made Milan Supply Chain Solutions and other trucking companies a “test fleet” for the improperly tested 2010 model year engine.
Navistar Accused Of Knowingly Selling Defective Engines
Milan’s lawsuit claims that not only did Navistar fail to properly test the engines but also that Navistar was aware of the flaws within the MaxxForce 13 engine system:
“The jury also heard evidence that Navistar knew when it launched the engine that critical engine components had serious quality problems and a shortened life span. Navistar knew one key component of the Advanced EGR engine (the EGR cooler) — that would cost customers like Milan huge problems and the company hundreds of millions of dollars in warranty claims—had a life span of less than 20% of the design requirement based upon testing done before the sale of the engines to the public. None of what the company knew about these problems was ever disclosed to customers who purchased the Maxxforce engine between 2010 and 2012.”
Navistar has refuted the claims that they failed to properly test the engines, claiming that the engine underwent 12 million miles of testing.
Around 60,000 of the engines in question were sold between 2010 and 2012. Navistar says that they have won several similar lawsuits in states such as Texas, Wisconsin, Michigan, Indiana, Alabama, and Illinois.