Bankruptcy Court Approves $24 Million Settlement for Dodge Chrysler Truck Death

A New York bankruptcy judge has approved a $24 million settlement reached between Chrysler and the family of a California man who was run over and killed by a Dodge pickup truck in 2004.

In 2007, a Los Angeles jury awarded $55.2 million to relatives of Richard Mraz, a longshoreman who suffered fatal head injuries when he was struck by a 1992 Dodge Dakota truck. Mraz reportedly exited his vehicle thinking it was in park, but it slipped into gear and ran him over as he attempted to climb back into the truck as it rolled, officials said.

Jurors found Chrysler was negligent for failing to fix a defect that allowed the trucks to suddenly fall from park into reverse. The automaker then appealed that award, leading to the announcement of a settlement last week, according to a Law.com report.

Judge Arthur Gonzalez of the U.S. Bankruptcy Court, Southern District of New York, approved the settlement, which had been facilitated by mediator Randall Wulff.

Appeal Bond Issuance Key to Plaintiff’s Success

Before Chrysler filed for bankruptcy earlier this year, Mraz’s attorneys succeeded in having the company post an appeal bond pending resolution of the case. That decision turned out to be key to helping their client’s family recover damages for their devastating loss.

“In hindsight, it was the right decision given what ultimately transpired,” said Mraz’s attorney, Robert Nelson. “Had we not gotten the judgment bonded, we would have been in line behind all the other creditors.”

Last summer, Mraz’s attorneys were granted permission by the court to conduct direct negotiations with the appeal bond issuer, Safeco Insurance Co., Nelson said.

“We were able to leverage the interests of Safeco, the unsecured creditors and Chrysler so that resolving the case proved to be a win-win for all of the parties involved,” he added. “It’s rare and exciting when a bankruptcy can work to the benefit of a plaintiff client.”

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