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Jury awards Ohio carrier $1.3 million over MaxxForce engine dispute

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The Ohio jury awarded Dutch Maid Logistics $1,025,000 in punitive damages on top of $275,000 in lost profits and diminished value for the sale of the trucks involved in the suit. (Courtesy: DUTCH MAID LOGISTICS)

NEWARK, Ohio — A jury on March 1 found Navistar guilty of fraud for concealing and not disclosing certain facts in the sale of 20 Navistar ProStars.

It marks the second such verdict against Navistar, according to Clay Miller of the law firm of Miller Weisbrod.

Previously, Navistar was found guilty of fraud by a Tennessee jury and awarded $30,800,000 including $20,000,0000 of punitive damages in the case of Milan Express vs. Navistar, which involved the sale of 240 trucks with the same Maxxforce engine.

This time the verdict was returned by a jury in Newark, Ohio, based on defects in the Maxxforce engine in trucks sold to Dutch Maid Logistics, an Ohio-based trucking company.

The jury awarded $1,025,000 in punitive damages on top of $275,000 in lost profits and diminished value for the sale of the defective trucks. The jury also found that Dutch Maid should recover its attorneys’ fees, which likely will bring the total verdict to over $2,000,000.

Navistar spokesperson Lyndi McMillan said the OEM was disappointed in the outcome of the trial and is evaluating its options.

In both cases, the trucking companies were represented by Miller.

Miller Weisbrod represents numerous other trucking companies in similar cases across the United States.

“Navistar’s current management has spent millions and millions of dollars to defend these cases and has never made any meaningful settlement offer to any of these trucking companies, including Dutch Maid,” Miller said.

“When we started this process, we were merely looking to cover real losses that we had suffered as a result of Navistar’s faulty equipment,” said Sam Burrer, general manager of Dutchmaid “We tried for years to resolve this before finally having to ask jury to decide the matter. Throughout the process Navistar attacked and vilified our company for asking them to take responsibility.”

Navistar in March 2016 reached a settlement with the Securities and Exchange Commission for $7.5 million to end a criminal probe into the accusations that it misled investors about the alleged defects of the MaxxForce line.

When the now infamous new engine standards were implemented beginning with the 2010 model, Navistar was the only North American engine manufacturer that decided to utilize exhaust gas recirculation instead of a DEF-based aftertreatment system.

In 2012, the company dumped the EGR-only strategy, opting for the exhaust aftertreatment.

The company ultimately lost billions of dollars because of consumer claims against the EGR engines.

 

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Michigan Democrat wants businesses, trucks to pay more for road repair

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Michigan House Minority Leader Christine Greig says new ideas need to be brought to the table for how to fund road repairs in the state. She and her colleagues have introduced a proposal that would increase corporate taxes and institute a 6-cents-a-mile tax on heavy trucks and a bridge toll on tractor trailers. (AP: David Eggert)

LANSING, Mich. — With state Republicans lawmakers firmly opposed to a 45-cents-a-gallon fuel tax hike, Democrats want businesses to do more to help fix the state’s roads.

A new $1.2 billion proposal from House Democrats would raise the state’s corporate tax, create a new 6-cents-a-mile tax for heavy trucks and charge bridge tolls to tractor trailers. It also includes portions of Gov. Gretchen Whitmer’s budget plan, such as raising taxes on certain businesses so they are taxed the same as traditional corporations and restoring tax breaks for pensioners.

House Minority Leader Christine Greig said Democrats agree with the Democratic governor’s call for $2.5 billion in new revenue and know that a fuel tax increase would likely be part of any final deal.

“We just felt it was important that we brought other ideas in since we haven’t seen anything other than a shell game and shifting around revenue from the Republicans, but yet they’ve said that they’re not going to support a 45-cent gas increase. So let’s put some new ideas on the table to get us to the $2.5 billion,” she said Friday.

By releasing the plan, Democrats risked looking like they oppose Whitmer’s fuel tax hike, which Republicans, who control the Legislature, have said is going nowhere and which Democrats have not introduced as legislation. Greig said Democrats are “100% supportive” of generating new revenue and their proposal is based on feedback from constituents.

“We just think that if you’re really struggling to a negotiation, that implies that you bring a bunch of different ideas and come up with a compromise,” she said.

Some in the business lobby have said raising gasoline and diesel taxes is simple and fair because everyone pays, including companies that move goods or have employees on the roads. But Greig said what they pay is not “proportionate.”

“To attract business, to attract talent, to keep our communities strong that support businesses, we have to have good roads and bridges,” she said, noting that businesses saw a $1 billion-plus tax cut under a 2011 overhaul enacted by Republicans. “Since that happened, we’ve seen our roads and infrastructure deteriorate. We’ve seen our ranking in schools drop nationally. So something is not right. To put this all on the backs of individuals is shortsighted.”

Increasing the 6% corporate income tax to 8.5% and raising taxes on flow-through entities, Greig said, would lead to businesses paying $800 million more annually — but still less than they were before the 2011 change. Assessing a vehicle-miles-traveled tax on the two heaviest classes of trucks would generate $390 million from those who cause the most road damage, she said, while the bridge tolls — based on a unique program in Rhode Island — would raise about $50 million.

Road-funding and budget negotiations are expected to extend into the summer as legislators scale back their voting days starting this coming week.

Greig urged the business community to “come to the table and say, ‘We will accept contributing more directly to the solution.’”

Republicans and business groups oppose raising business taxes, however, saying lower taxes help the economy. To soften the impact of a 45-cent gas tax increase by easing the tax burden on seniors, Whitmer has proposed boosting taxes on 150,000 corporations, partnerships and limited liability companies whose income is passed through to the entities’ owners and taxed at the personal rate of 4.25 percent. The Senate’s Republican leader has called it “stupid.”

So far, the main component to emerge from Republicans’ road-funding work is a budget plan in the House that would ultimately ensure $850 million in sales tax being collected at the pump goes to roads, without raising taxes. The revenue now primarily is dedicated to schools and municipalities.

Greig said it is “confusing” that a portion of fuel taxes funds other priorities and she has no problem “cleaning up revenue streams.” But new revenue should be generated to replace it, she said.

“They’re not doing that. That’s the problem,” she said. “We’re basically doing it on the backs of local governments and kids, frankly.”

Big rig loaded with mail crashes in Little Rock; tractor ends up on guard rail

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Part of a tractor hangs over the Interstate 440 railing after the driver couldn’t decide which ramp to take and crashed. (Courtesy: ARKANSAS DEPARTMENT OF TRANSPORTATION)

LITTLE ROCK, Ark. — The old saying about those who deliver the mail goes something like this: “Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds.”

But Sunday some indecision did.

The Arkansas Department of Transportation posted on its social media site that the driver of a tractor-trailer carrying a load of mail couldn’t decide which ramp to take off Interstate 440 Terminal Interchange with Interstate 30 and ended up striking the guard rail.

The tractor separated from the trailer and wound up hanging partially over the bridge railing.

Officials said one of the tractor’s fuel tanks became dislodged and fell onto Interstate 30 below causing an explosion and fire.

The driver was taken to a hospital, but her condition is unknown.

Traffic was delayed on both I-30 and I-440 which is the main thoroughfare between Little Rock and the Bill and Hillary Clinton Newsal Airport.

 

 

Colorado DOT kicks off project to install media cable barriers on I-25

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DENVER — The Colorado Department of Transportation kicked off a seven-month project in June that aims to install new median cable barriers along Interstate 25 between Pueblo and Colorado Springs as a safety measure to prevent median crossover crashes.

According to an article in the Journal of the American Association of State Highway and Transportation Officials, the Colorado agency noted in a June 14 statement that it is using a “multi-phased approach” based on vehicle crash history and traffic volumes to specifically locate the new cable median barriers – part of its Whole System – Whole Safety initiative that takes a systematic approach to safety that includes driving behaviors, the built environment, and operations.

“Improving the safety of Colorado’s transportation network by reducing the rate and severity of crashes and improving safety conditions for travelers is our main goal,” Shoshana Lew, executive director of the Colorado DOT, said in a statement. “The statewide program’s whole system approach is unique in how it brings together all areas of the driving experience, resulting in improved and enhanced safety for motorists.”

The $3.5 million project – expected to be completed by December – will remove any existing barrier structures and replace it with media cable barrier along with “added offset” from the travel lane and flattened median side slopes.

That will continue to eliminate vehicle cross-over crashes, the agency noted, while additionally reducing nuisance hits as the northbound cable barrier can be removed. The net effect will allow better maintenance access, reduced maintenance costs, better traffic flow, and further enhancing safety, Colorado DOT said.

A 68-page study wrapped up last year by the Center for Transportation Research and Education at Iowa State University determined that cable median barriers “significantly” reduce motor vehicle crash fatalities and injuries, though they do lead to an increase in “property-damage only” crashes, according to the collected data examined by the school’s researchers.

That study found that out of the 6,718 median-related crashes it examined over a nine-year period stretching from 2007 to 2015, cable media barrier safety devices reduced fatalities, incapacitating injuries, and non-incapacitating injuries by 68.7, 36.8, and 23.9 percent, respectively.

 

 

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