Opponents blast $149 million deal in tire maker suit

Houston Chronicle ^ | 01/07/04 | Pam Easton

[Holly_P]

BEAUMONT -- Critics of a proposed $149 million deal that would settle 30 class-action lawsuits against Bridgestone/Firestone North American Tire packed a courtroom Wednesday to oppose the agreement, asking a judge to allow changes before approving it.

State District Judge Donald Floyd said he would decide within a month whether to approve, reject or allow revisions to the settlement, which comes more than three years after the 2000 recall of 14.4 million Firestone tires amid safety concerns.

"This is a complete illusionary deal," said attorney Mitchell Toups, who asked Floyd to allow objectors 60 days to improve the settlement so it would offer additional compensation to people who owned Firestone tires but did not suffer personal injury or property damage.

"We didn't come here to wreck this deal," Toups said. "Give us the opportunity to bring to these lawyers what we think will work."

Company officials say the settlement, which could affect 15 million people and nearly 60 million tires, is good for all parties.

"This is a large settlement, and it is one we think is fair and in the best interest of everyone," said Marina Marich, spokeswoman for the Nashville, Tenn.-based tire maker.

The court received 110 written objections, and more than two dozen attorneys showed up Wednesday to personally voice their discontent.

But attorneys for the tire maker and class-action representative Terri Shields said they would not negotiate with those opposed to the agreement, which the tire maker agreed to in July.

Mike Caddell, an attorney who has handled a class-action and other lawsuits against the tire maker, said the company is trying to pass off actions already planned or promised in other litigation as compensation.

"It is important for the court to appreciate whether this settlement includes repackaged items," he said. "Let's determine if these are indeed new benefits."

Marich said the settlement is completely made up of new initiatives.

It calls for Firestone to pay an estimated $70 million to replace tires, $41 million to manufacture certain tires with materials that provide better high-speed capacity, $15.5 million on a consumer education and awareness campaign, and $19 million for attorneys fees.

The company also has paid $3.5 million to notify class members of the settlement plan.

The 45 named plaintiffs each could receive up to $2,500. Those who are not named but owned one of 22 brands of Bridgestone/Firestone tires between 1991 and 2001 qualify to have their tires replaced, Marich said.

The lawsuits resolved as part of the proposed settlement include those filed by Firestone ATX, ATX II and Wilderness AT customers whose tires were among those investigated by the National Highway Traffic Safety Administration in 2000.

"What you have is an effort to quibble with a settlement that has been fairly negotiated," Firestone attorney Hugh Whiting said. "A request for 60 days is just a request for delay. It is a request to get in and interfere."

Plaintiffs' attorney Don Barrett said lawyers in the case have spent millions of dollars pursuing the legal action and thousands of hours going through documents.

They got a settlement after discussions that were "long and contentious" that will benefit the public, he said.

"This is a good settlement. Nothing in this world is perfect," Barrett said. "It is a bit unseemly for attorneys who don't know boo-turkey about this case to come in at the end and second-guess their colleagues."

[microgood]

148.5 million for the lawyers, the other 500K to be split among the plaintiffs, standard in any class action suit.

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