Toyota Motor Sales, U.S.A., Inc. and Toyota Motor Corporation v. Benjamin Thomas Reavis and Kristi Carol Reavis, Individually and as Next Friends of E.R. and O.R., Minor Children

Court of Appeals of Texas·Decided February 4, 2021·No. 05-19-00284-CV·Published

Opinion

Affirmed and Opinion Filed February 4, 2021

In The

Court of Appeals

Fifth District of Texas at Dallas No. 05-19-00284-CV

TOYOTA MOTOR SALES, U.S.A., INC. AND TOYOTA MOTOR CORPORATION, Appellants

V.

BENJAMIN THOMAS REAVIS AND KRISTI CAROL REAVIS, INDIVIDUALLY AND AS NEXT FRIENDS OF E.R. AND O.R., MINOR CHILDREN, Appellees

On Appeal from the 134th Judicial District Court Dallas County, Texas

Trial Court Cause No. DC-16-15296

MEMORANDUM OPINION

Before Justices Myers, Partida-Kipness, and Reichek Opinion by Justice Partida-Kipness Appellants Toyota Motor Sales, USA, Inc. (TMS) and Toyota Motor

Corporation (TMC) (collectively, Toyota or the Toyota Appellants) appeal the trial court’s denial of their motion for temporary and permanent sealing order of four trial exhibits and related testimony. After reviewing the briefs and the record, we conclude Toyota has not shown the trial court abused its discretion. Accordingly, we affirm the trial court’s order.

BACKGROUND

In September 2016, appellees Kristi and Ben Reavis were driving home from

church in their 2002 ES 300 Lexus sedan when they were forced to stop for slow- moving freeway traffic and were rear-ended by an SUV travelling between 45 mph and 48 mph. The front seats collapsed, sending Ben and Kristi over their seats, into the back seat, and head first into their two young children, who were strapped into car seats in the back seat. The two Reavis children, who were three and five years old at the time of the collision, sustained severe, permanent traumatic brain injuries.

The Reavises sued TMS, TMC, and Toyota Motor North America, Inc. for product defects, negligence, and gross negligence, and sued the driver of the SUV, Michael Steven Mummaw, and the vehicle’s owner, Mark Howell, for negligence and gross negligence. After non-suiting their claims against Howell and dismissing Toyota Motor North America, Inc., the case proceeded to trial against TMS, TMC, and Mummaw. The Reavises reached a settlement with Mummaw while the jury was deliberating.

At trial, the Reavises’ experts testified that when the vehicle was rear-ended, the front seats yielded or bent backwards as designed by Toyota, Ben and Kristi slipped out of their seatbelts and ramped up (moved up) over the top of their front seatbacks, and then made violent, head-to-head contact with their children in the back seat before sliding back down into their front seats. According to these experts,

although the events happened in milliseconds, the children’s severe, permanent traumatic brain injuries were caused by the head-to-head contact with their parents.

The Reavises presented evidence that Toyota designed its whiplash-injury lessening (“WIL”) seats to yield or bend backwards in a rear-end collision as the Reavises’ seats did here. Gary Whitman, a mechanical engineer and expert in occupant crash protection, automobile seats, and seatbelt-restraint systems, testified for the Reavises. It was his opinion that based on his testing and using Toyota’s yielding seat, when the front seat yields backwards in 45mph+ rear-end collisions, Toyota’s seatbelts fail to prevent front seat occupants from ramping-up their seatbacks and entering the rear-seat space. Whitman proposed an alternative seatbelt design that, in his opinion, would keep the front-seat occupant in his/her seat when Toyota’s seatback yields backwards in 45mph+ rear-end collisions. The Reavises also presented evidence from which they maintain the jury could have reasonably concluded that Toyota had known of this “ramping” risk for decades but chose not to test for the risk or apply design standards to correct the problems and create a safe design to reduce or eliminate the risk.

After a two-week trial, the jury unanimously found TMC liable for design defect and marketing defect, found TMS liable as the nonmanufacturing seller of a defective product, determined actual damages for Kristi, Ben, and the Reavis children, assigned 90% responsibility to TMC, 5% to TMS, and 5% to Mummaw, found TMC and TMS liable for gross negligence, and determined exemplary damage

awards. The trial court rendered judgment in accordance with the verdict; awarding $98,676,248.71 in actual damages (after settlement credits) and $95,222,497.42 in exemplary damages against TMC; awarding $4,961,812.44 in actual damages and $14,400,000 in exemplary damages against TMS; and awarding pre-judgment and post-judgment interest.

The Motion to Seal

After trial, Toyota sought temporary and permanent sealing of four trial

exhibits and testimony related to one of those exhibits.1 We separate these court records into two categories—the Engineering Rule exhibits and the WIL Guideline exhibit and related testimony.

The first category consists of Plaintiffs’ Exhibits 243, 244, and 245. Those exhibits are three versions of the Toyota Engineering Rule TRD1290G (collectively, the Engineering Rule exhibits). That rule covers the procedure for design review based on failure mode, or DRBFM, which, Motoki Shibata, a Project General Manager for TMS, described as the process “created and used by TMC to properly review the design of a vehicle, component part, or function . . . .” According to Gary Stephens, one of Toyota’s expert witnesses, the purpose of a design failure mode

1 Regarding the materials sought to be permanently sealed, we make “every effort to preserve the confidentiality of the information the parties have designated as confidential” consistent with our obligation to hand down a public opinion explaining our decisions based on the record. See MasterGuard L.P. v. Eco Techs. Int’l, LLC, 441 S.W.3d 367, 371 (Tex. App.—Dallas 2013, no pet.); see also Kartsotis v. Bloch, 503 S.W.3d 506, 510 (Tex. App.—Dallas 2016, pet. denied) (citing TEX. R. APP. P. 47.1, 47.3 and TEX. GOV’T CODE § 552.022(a)(12) for proposition that opinions are public information).

and effects analysis is to test a design for problems in order to improve the design or to design an alternative for addressing issues that arise during the analysis. Stephens agreed design failure mode and effects analysis is a general engineering concept that is not specific to the automotive industry, and explained that it is used “to understand how . . . any design out there will perform under certain circumstances to identify aspects of the design that can be either improved or . . . designed into alternative means of addressing whatever issues may arise as a result of that analysis.”

The second category of court records consists of Plaintiffs’ Exhibit 246, which is Toyota’s WIL Guideline, and twelve pages of related testimony consisting of excerpts from the trial testimony of Whitman and related deposition excerpts presented at trial of Shibata. Toyota submitted the declaration of Scott Miller, Executive Engineer at Toyota Motor Engineering & Manufacturing North America, Inc. (TEMA), in support of the motion to seal to address the WIL Guideline exhibit. Miller explained in his declaration that the WIL Guideline exhibit provides “a blueprint of the initial design of the Whiplash Injury Lessening (WIL) seat headrest, evaluation and assessment of that design in the field, the internal processes utilized to redesign Toyota products, and identifies the specifics of the redesigned, second- generation WIL headrest, and the assessment of its performance.”

The Reavises filed a response in opposition to sealing these court records.

CBS News and the mother of a five-year-old boy who suffered catastrophic brain

injuries after his family's Toyota Camry was rear-ended at highway speeds intervened2 in the proceeding to oppose Toyota’s motion to seal.

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Toyota Motor Sales, U.S.A., Inc. and Toyota Motor Corporation v. Benjamin Thomas Reavis and Kristi Carol Reavis, Individually and as Next Friends of E.R. and O.R., Minor Children, (Tex. Ct. App. 2021).

Toyota Motor Sales, U.S.A., Inc. and Toyota Motor Corporation v. Benjamin Thomas Reavis and Kristi Carol Reavis, Individually and as Next Friends of E.R. and O.R., Minor Children (Toyota Motor Sales, U.S.A., Inc. and Toyota Motor Corporation v. Benjamin Thomas Reavis and Kristi Carol Reavis, Individually and as Next Friends of E.R. and O.R., Minor Children) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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