Ford, Firestone face major

Both companies also are eager to reach a settlement of 180 federal class-action and personal-injury suits that have been consolidated in federal court in Indianapolis, where the judge overseeing the litigation is moving it forward briskly.

Now, in the case of Donna Bailey in Corpus Christi, Texas, all three plans are at risk. The 43-year-old single mother was a front-seat passenger in a Ford Explorer that flipped three times last March near San Antonio, after the tread on the vehicle8217;s right rear Firestone tire suddenly tore apart.

Now a ventilator-dependent quadriplegic, her high-profile personal-injury suit against both companies is scheduled to go to trial in state court early next month.

quot;The problem they have from a strategic standpoint is that they have at least a three-front war,quot; said Victor Diaz, a plaintiff8217;s lawyer in Miami, who is co-lead counsel for the individual federal-injury and wrongful-death suits consolidated against both companies in Indianapolis.

quot;On the one hand, they have the government regulatory authorities pressing for information, and they understand their legal obligation to cooperate. 8230;Then they have the federal-court litigation in Indianapolis, which by its magnitude is the most significant litigation pending against them. And then they have these hundreds of state-court cases, any one of which can significantly aggravate their exposure, either on the regulatory front or in the federal litigation.quot;

Bailey8217;s state-court case is at the top of that list. An outdoor enthusiast on the way home from a rock-climbing trip with friends the day of the accident, Ms. Bailey is being represented by Tab Turner, of Little Rock, Ark, a crack plaintiffs8217; litigator and veteran of rollover cases against Ford. In court pleadings, Firestone has maintained that the tread separated because the tire was underinflated. Ford blames the rollover on the driver, saying she overreacted by turning too abruptly when the tread came apart.

For Ford, the trial will highlight alleged design defects in the Explorer, just as the company is planning the launch of a redesigned vehicle intended to eliminate those concerns. Plaintiffs8217; lawyers and auto-safety advocates contend the Explorers now on the road are inherently tippy and designed with too-little safety margin for how incorrect tire size, air pressure or even choice of tread can increase the risk of rolling over, regardless of a tire failure.

The new Explorer8217;s launch, which Ford originally set for last month, has been marred by delays because of quality issues and is now scheduled for February. Auto-industry analysts say Ford, looking to clear the way for the vehicle8217;s launch, is rushing to wipe the Texas case off the litigation calendar by seeking an out-of-court settlement. Indeed, both companies have been in settlement talks with Mr. Turner, who said no agreement is near.

For Firestone, the risks of an adverse verdict in Corus Christi could be even greater. The Wilderness tire on the Explorer Ms. Bailey was riding in was made in Wilson, N.C., not the Decatur, Ill., plant that Ford and Firestone have isolated as the source of the tire maker8217;s manufacturing problems. That means it would not have been subject to Firestone8217;s recall last August.

Federal investigators are already weighing whether to widen the Firestone tire recall and have identified an additional group of about 1.4 million Firestone tires of various makes and sizes that have worrisome tread separation problems. The government issued a consumer advisory, and Firestone has offered to replace those tires for free if customers insist on it.

But safety advocates and other critics of the tire maker want a voluntary expansion of last August8217;s recall to include this broader universe of tires, saying that problems with the tires overall will accelerate with age. But Firestone has refused to expand the recall, insisting these other tires don8217;t show the same high failure rates as the recalled tires.

That could change if Firestone loses the Bailey case. quot;The minute a jury returns a plaintiff8217;s verdict in Tab8217;s case,quot; Mr. Diaz says, quot;the pressure on the regulatory authorities to expand the scope of the recall increases exponentially.quot;

Both Ford and Firestone cautioned against placing too much emphasis on one trial. quot;I think it8217;s an oversimplification to say this the Texas case is a case that will make or break the recall, because every case and every situation stands on its own,quot; Firestone spokeswoman Christine Karbowiak said.

Susan Krusel, a Ford spokeswoman, said the company would like to settle the case, but not because of the Explorer launch. quot;We had a customer that was injured in our vehicle after tread separation and has alleged that the vehicle had some role in it. Certainly in those instances we are always willing to discuss reasonable settlements based on individual cases,quot; Krusel said.

Ford and Firestone have a safety net of sorts in Texas. Legal reforms enacted there while President-elect George Bush was governor limit the potential size of a damage award against either company. Punitive damages, for example are capped at twice quot;economic damages,quot; such as medical bills and lost pay, and damages for pain and suffering are limited to 750,000.

But Turner estimates that Bailey8217;s cost of past and future medical care, as well as lost wages, alone will exceed 30 million. And plaintiffs8217; lawyers contend that even if an outsize punitive award were to be scaled back by Texas law, the damage to Ford and Firestone could still be enormous.

quot;As each of these cases are litigated, they create a blueprint for other lawyers in other cases in terms of publicly rehearsing Ford and Firestone8217;s defenses,quot; Diaz said.

A mega verdict in Texas would also raise expectations by lawyers with clients elsewhere and open the gate to potential new lawsuits. And that, in turn, would likely make the chances of reaching a global settlement of the federal suits now consolidated in Indianapolis far more costly for both companies.