NHTSA imposes record $105 million penalty in Chrysler recall News
NHTSA imposes record $105 million penalty in Chrysler recall

The US National Highway Traffic Safety Administration (NHTSA) [official website] announced [press release] Monday that it has imposed a record $105 million penalty against Fiat Chrysler [corporate website] for its failure to provide a remedy and notices for 23 recalls related to malfunctions of their automobiles. Defective suspension systems could cause Jeep brand vehicles to lose control and other problems made them prone to catch fire. In a consent order [text, PDF], Chrysler admitted to failing to provide effective and timely recall remedies, notification to vehicle owners and dealers and notifications to NHTSA in violation of the National Traffic and Motor Vehicle Safety Act [text, PDF]. Under the agreement, Chrysler also agreed to buy back affected vehicles for above market value and provide financial incentives and notice for owners to have the issues repaired.

The agreement comes after the NHTSA held public hearings on the issue earlier this month [JURIST report]. In 2014, the US Department of Justice (DOJ) [official website] announced [JURIST report] a $1.2 billion settlement agreement with Toyota for misleading customers and US regulators. In November 2012 Toyota settled [JURIST report] a class action lawsuit for $35.5 million brought by its shareholders failing to disclose vehicle quality issues. In 2010, Toyota agreed [JURIST report] to pay $32.4 million in fines following investigations by the National Highway Traffic Safety Administration. JURIST Guest Columnist Bruce Aronson in 2011 argued [JURIST op-ed] that the recent corporate scandals in Japan, including the Toyota recalls, highlight the need for reform of that country’s corporate governance structure.

THIS DAY @ LAW

Thomas Becket, former Chancellor of England, murdered by Henry II's knights

On December 29, 1170, Archbishop Thomas Becket, former Chancellor of England, was murdered in Canterbury Cathedral by knights acting in the name of Henry II.

Becket and Henry had been entangled in a power struggle over, among other things, criminal jurisdiction over clergy. Read a contemporary account of the murder of Thomas Becket.

Texas attains US statehood

On December 29, 1845, Texas became the twenty-eighth state to join the United States of America when US President James K. Polk signed the Ordinance of Annexation. Texas had a complicated path to statehood because it had formerly been part of Mexico and then an independent republic. The US Congress passed the Annexation of the Republic of Texas Joint Resolution on March 1, 1845. Voters in Texas then approved the Ordinance of Annexation in October, before it was approved by the US Congress and signed into law by President Polk on this day in 1845. The US Supreme Court later ruled in Texas v. White that, despite its unique path to statehood, Texas did not have the right to secede from the union.