United States v. Ford Motor Company, (Two Cases). The United States of America v. Ford Motor Company, a Corporation

574 F.2d 534, 187 U.S. App. D.C. 323
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 6, 1978
Docket76-2062, 76-2063 and 77-1378
StatusPublished
Cited by8 cases

This text of 574 F.2d 534 (United States v. Ford Motor Company, (Two Cases). The United States of America v. Ford Motor Company, a Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Ford Motor Company, (Two Cases). The United States of America v. Ford Motor Company, a Corporation, 574 F.2d 534, 187 U.S. App. D.C. 323 (D.C. Cir. 1978).

Opinion

MacKINNON, Circuit Judge:

These consolidated cases involve defects in automobiles manufactured by Ford Motor Company. The applicable statute is the National Traffic and Motor Vehicle Safety Act of 1966, as amended (15 U.S.C. §§ 1381 et seq. (Supp. V 1975)) (hereafter the “Act” or “Safety Act”). Nos. 76-2062 and 76- *537 2063 concern Ford’s appeal from the district court’s entry of summary judgment in part for the Government, and its order that Ford recall approximately 500,000 1968 and 1969 model-year Mustang and Cougar automobiles and replace a defective seat-pin bracket in the driver’s seat of each of these cars. 1 This bracket connects the back of the seat to the bottom of the seat as shown in the sketch reproduced below from the Government’s brief, page 5a. 2 No. 77-1378 concerns the Government’s appeal from the district court’s approval of a final recall notice which the Government believes does not comply with the relevant statutory and regulatory standards. 3

I. BACKGROUND

After a lengthy investigation, the Administrator of the National Highway Traffic Safety Administration (“NHTSA”) on August 12, 1975 4 ordered Ford to notify the owners of 1968 and 1969 model-year Mustang and Cougar automobiles that the cars contained a defect related to motor vehicle safety and to remedy the defects in such vehicles as required by the Act. 5 Ford de- *538 dined to comply with this order and indicated its intention to seek judicial review (J.A. 172). Thus, on August 18, 1975, the Government filed suit to enforce the Administrator’s order of August 12, 1975 (J.A. 151-55). 6 After Ford answered the complaint (J.A. 156-61) and after both parties undertook extensive discovery, the Government filed a motion for summary judgment (J.A. 284 et seq.). The district court filed its opinion granting in part the Government’s motion on October 1,1976 (J.A. 340-50). 7 Judgment in accordance with the opinion was entered on October 20, 1976 (J.A. 351-52). Thereafter, Ford appealed the October 20 order in this court.

In the district court, Ford sought a stay of the court’s order pending appeal, but this request was denied. Then, on November 24, 1976, Ford sought in this court a stay pending appeal. On that same day, we granted an “administrative stay” pending disposition of Ford’s stay request. The stay motion was denied on January 19,1977, but we extended the administrative stay for two weeks to allow the parties to make further efforts to reach agreement on the terms of an “interim” recall notice. It was contemplated that the “interim” notice would be issued prior to our consideration of the appeal from the district court’s summary judgment order. Several weeks passed during which the Government and Ford could not agree on the terms of the interim recall notice; the administrative stay was extended throughout this period. Finally, on March 8, 1977, after considering two proposed interim notices and the objections to each, this court granted Ford a stay pending appeal provided that it promptly distribute the Government’s interim notice (Addendum to Govt. Br. at 16a). Ford, however, considered this result unacceptable: by letter dated March 21, 1977, Ford advised this court through counsel that

upon the record evidence in this case and the information available to Ford, it is unable to agree that the notice proposed by the Government fairly represents the likely consequences of seat pin breakage. Under the circumstances, Ford’s management has decided, for public and customer relations reasons, not to send such a letter but to undertake a final recall of the cars.

Id. at 20a-21a.

The Government, concerned that the terms of Ford’s unilateral final recall notice would not adequately advise car owners of the safety consequences of the pin defect, filed an emergency motion with this court on March 24, 1977 to prohibit Ford from *539 implementing any final recall (Id. at 22a-23a). The motion was granted on March 25, 1977 (Id. at 27a), and the parties subsequently filed proposed final recall notices. On April 8, 1977, this court remanded the case to the district court to determine whether Ford’s proposed final notice satisfied the judgment of the district court (Appendix to Govt. Br. at 36a). On April 14, 1977, the district court, after conducting a hearing, approved Ford’s recall notice with certain modifications and directed Ford to distribute it (Id. at 64a; Appendix to Ford Brief at 71a). 8

The Government did not seek a stay of the district court’s April 14, 1977 order, but instead appealed it in No. 77-1378. The Government urges that a second recall notice be issued with language that, in the Government’s view, corrects inadequate language contained in the order approved by the district court.

II. FORD’S APPEAL FROM THE SUMMARY JUDGMENT

The purpose of the Safety Act is to protect the public against the unreasonable risk of accidents which might be caused by defects in the design, construction, or performance of motor vehicles and against the unreasonable risk of death or injury in the event of such accidents. 9 The Act contains a variety of mechanisms designed to further this purpose, but the one that concerns us here is the Act’s requirement that manufacturers notify purchasers of motor vehicles containing a safety-related defect that poses an unreasonable risk of accident or injury within the meaning of the statute (15 U.S.C. § 1391; 15 U.S.C. § 1412). 10 As mentioned above, the district court decided that the seat-pin bracket in the cars in question constituted a safety-related defect which posed an unreasonable risk within the meaning of the Act. Accordingly, the district court, upon the Government’s summary judgment (notion, ordered Ford to recall the cars and repair the defective parts.

Ford appealed this decision, but thereafter unilaterally instituted a final recall to repair the defective seat pins in the vehicles. Ford has, on its own, initiated action which, if completed in accordance with the requirements of the applicable statutes and regulations, will result in the elimination of the dangerous condition that was the subject of the proceedings before the district court.

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574 F.2d 534, 187 U.S. App. D.C. 323, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-ford-motor-company-two-cases-the-united-states-of-cadc-1978.