Updated April 7, 2000, 10:11 a.m. ET
Jury clears Consumer Reports magazine of liability in Isuzu case
LOS ANGELES (AP) A federal jury has cleared the publisher of
Consumer Reports magazine of liability for reporting that 1995-96
Isuzu Troopers are dangerous.
The jury did rule Thursday that eight of the 17 statements Isuzu
questioned were false, and that in one of those inaccurate
statements the magazine demonstrated "reckless disregard" for the truth.
But the jury determined Consumer Reports did not believe, in the
case of seven of those statements, that they were untrue before
publishing them. It decided against awarding monetary damages to
Isuzu, whose attorney told jurors the company suffered $244 million
in lost sales and damage to its reputation after the issue was raised in 1996.
Jury foreman Don Sylvia said eight of the panel's 10 jurors
wanted to award Isuzu as much as $25 million, the Los Angeles Times
reported today.
"We didn't do it because we couldn't find clear and convincing
evidence that Consumers Union intentionally set out to trash the
Trooper," he said.
Consumer Reports' publisher, Consumers Union, called the ruling
a victory, saying the jury backed up its claims that the vehicle is
basically unsafe and prone to tip over.
"The verdict generally acknowledges the honesty of our testing
and reporting staff and our belief in our procedures," Consumers
Union president Rhoda Karpatkin said in a statement.
Isuzu said the ruling supported its claim that Consumer Reports
rigged testing on the Trooper, falsified documents and used
"driving stunts" to make it appear the vehicle was vulnerable to a rollover.
"The jury's finding on falsity today provides clear vindication
for the Trooper, which has an excellent safety record in the real
world," the company said in a statement.
Consumers Union maintained that in 75 out of 192 test runs, two
of the vehicle's wheels left the ground when the driver simulated
an emergency swerve.
The jury ruled that the magazine knew one statement was false:
"Careful driving, however, is ultimately not the answer to the
problem. Isuzu ... should never have allowed these vehicles on the road."
Isuzu lawyers said they believed evidence of false statements
met the standard for malice, but "apparently the jury did not,"
said Andrew White, an attorney for the company.
"The press, as it should be, is protected by a very high
standard when it comes to malice," White said.
Company officials said Trooper sales plummeted in 1996 because
of the magazine article but have since rebounded.
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