A Tennessee jury awarded a trucking company more than $30 million in a case involving Navistar’s older generation of trucks and engines.
On Aug. 10, the jury in Jackson found Navistar violated the Tennessee Consumer Practice Act, and provided Milan Supply Chain Solutions $10.8 million in actual damages and $20 million in punitive damages. The trucking company sued after purchasing 243 Navistar 2011 and 2012 International Prostars with Maxxforce engines.
Navistar said it was “disappointed in the jury's verdict and are evaluating our options to challenge it."
Milan accused Navistar of failing to disclose that the Maxxforce 13 liter engine had defects. The engine used exhaust gas recirculation to meet federal emissions standards. However, Navistar later abandoned that technology after it failed to meet regulations.
“It appeared the jury’s punitive damage verdict was a message to Navistar that it is not acceptable for the company to cover up important defects in the engines and the engines’ testing program in order to make a sale,” said Clay Miller of the Dallas law firm Miller Weisbrod, lead trial attorney for Milan.
The law firm said the jury heard evidence that Milan had lost over $35,000 per truck on trade-in values over the last several years.
In an e-mailed statement to Fleet Owner, Navistar defended its actions.
“We have successfully defended similar claims regarding our MaxxForce 13 engines in several other jurisdictions, including dismissal of claims of fraud in courts in Texas, Wisconsin, Michigan, Indiana, Alabama, and Illinois.
“Navistar tested the MaxxForce 13 engine consistent with industry standards. They were tested for 12 million miles prior to launch under rigorous conditions, in tests cells and on the road. At the time of the product launch, we were confident, based on this testing, that the product would perform. All products undergo continuous improvement throughout their lifecycle. When some parts unexpectedly failed, we fixed them under warranty for our customers, including Milan Supply. We’ve invested a significant amount of resources standing behind our products and supporting our customers.”
