Paboojian
v. Teledyne Continental Motors, et al.
Settlement: $ 32,125,000
Santa Clara County Superior Court
June 3 , 1986
Plane Crash |
| Dennis
Paboojian, age 47, was a licensed pilot. He was taking instrument
instruction in a Piper Malibu, a plane with which he was relatively
unfamiliar. After takeoff from Palomar field in San Diego, the
number three cylinder head separated from the engine and caused
an engine compartment fire. The instructor, unaware of the cause
of the failure or the fire, took the controls but delayed an emergency
landing because he could not confirm the condition of the landing
gear. As he tried to troubleshoot the apparent gear problem, the
fire spread to the cockpit. Shortly thereafter, incapacitated by
the flames, the pilot crashed the plane on the median to Interstate
405 adjacent to Long Beach International Airport. |
| The
flight instructor died in the crash. Mr. Paboojian suffered full
thickness burns over 62% of his body. He lost his left forearm, right hand, and most of his facial features
including his nose and ears. He also suffered a fully separated
diaphragm, an injury so rare the survival rate is virtually unknown.
He spent 8 months in intensive care and endured more than 100 reconstructive
surgeries. |
| Mr.
Paboojian was CEO of Rolm Corporation, a technology company he
saw into the billion-dollar revenue class before its sale to IBM.
He left Rolm for sabbatical just before the crash, complicating
the question of earnings. Mr. Paboojian turned to O'Reilly & Danko for representation. |
| The
Firm conducted a lengthy investigation. The cylinders used in the
Malibu engine had first been used in much smaller engines. Continental,
the engine's manufacturer, progressively installed these cylinders
on larger engines without conducting any additional stress engineering.
The Malibu engine, designated the TSIO 520 BE, was the largest
of Continental engine to use these cylinders. Not surprisingly,
cylinder heads began to crack on this model engine almost from
the outset. By the time of the accident, Continental was aware
of more than 150 similar incidents. |
| Continental
assigned a stress engineer to determine the design safety factor
for the engine after reports of cracking began to flow in. The
engineer determined a safety factor of 1.14, well below the normal
design safety factor of 1.50. In fact, the engineer miscalculated,
and the actual safety factor was less than one. |
| Continental
then hired a statistician to predict the likelihood of future failures
in the fleet resulting from defective cylinders. The statistician's
report was "lost," however, shortly after Paboojian's crash. Though Teledyne paid him $60,000 for
his work, the statistician had extreme difficulties recalling the
report's conclusion when he testified. He conceded, however, that
he had warned Continental future failures were likely. |
| Rather than
replacing the cylinders on its fleet of TSIO 520 BE engines, Continental
issued a Service Bulletin requiring inspection of the cylinders
for cracks. Incredibly, the cylinder serial numbers of the Plaintiff's
aircraft were not listed in the Service Bulletin. |
| Continental's
defense stipulated that the pilot should have landed the plane
immediately rather than attempt to troubleshoot the landing gear
problem. It further contended that the head cracked because codefendant
S&G Flight Services improperly reinstalled the plane's turbo charger after servicing,
and the improper installation caused vibration which induced the
head to crack. After four days of trial, the defendants settled
for $31,150,000: the largest aviation settlement ever awarded to a single plaintiff. After the
accident, Piper grounded the entire Malibu fleet and discontinued
installation of the TSIO 520 BE. |
| Related
Articles |
| San
Jose Mercury News; October 13, 1990; "Huge settlement in air crash suit;" 1A |
| Bakersfield
Californian; October 14, 1990;"Record $31 Million settlement won by man injured in '87 plane crash" |
| Atlanta
Journal and Constitution; October 14, 1990; "Pilot wins $31 million in crash case" |
| Chicago
Daily Law Bulletin; October 16, 1990; "$31 million injury verdict" |
| New
York Times; October 16, 1990; "Pilot is awarded $31 million in '87 California plane crash;" A14 |
| The
Wall Street Journal; October 15, 1990;"Teledyne Unit Agrees to Injury Settlement for 1987 Plane Crash;" A10 |