Michelin, DaimlerChrsyler settle U.S. suit

WICHITA FALLS, Texas, Oct 22, 2002; Reuters reported that the families of four women killed and eight others injured when their church van rolled over reached an out-of-court settlement on Tuesday with French tiremaker Michelin (Paris:MICP.PA - News) and automaker DaimlerChrysler AG (XETRA:DCXGn.DE - News; NYSE:DCX - News).

Attorneys for the plaintiffs and the companies confirmed the settlement, but said under terms of the deal, they could not disclose the amount paid to the victims.

The families had brought wrongful death and personal injury suits against the two companies as well as two local companies at a Texas district court.

Michelin was removed from the case earlier Tuesday after an out-of-court settlement was reached. DaimlerChrysler and the other two companies did the same later in the day, they said.

"Michelin has resolved the suit to its satisfaction and maintains that the nine-year-old tire in question had no quality or workmanship issues. The company will have no further comment on the lawsuit," Michelin's North American division said in a statement.

DaimlerChrysler said in a statement there were no defects with its vehicle, a 15-passenger van, adding improper maintenance and driver error were the likely cause of the fatal accident.

"Reaching these agreements avoided a long, drawn-out trial for everyone," said Louann Van Der Wiele, assistant general counsel of DaimlerChrysler Corp.

Lawyers for the team headed by Corpus Christi attorney David Perry said that the survivors of the crash received lifetime compensation for their injuries and the bereaved families were also adequately compensated.

The four women were killed, and eight others injured, when their 1993 Dodge van rolled over last year near Wichita Falls, about 140 miles northwest of Dallas, when they were traveling on a church outing.

Their suit did not list a total monetary amount for the damages, but the families were seeking payments for items such as funeral and medical expenses, according to court papers.

The plaintiffs contend the van's tires were defective and that the Dodge vehicle was unstable, according to the papers.

Michelin and DaimlerChrysler contend the accident was caused by driver error. Dodge became a part of DaimlerChrysler in 1998 when the U.S. auto giant Chrysler merged with Germany's DaimlerBenz.

Also sued in the case were two local car dealerships and a tire retailer.

There have been hundreds of lawsuits launched against tiremakers over the last two years since Bridgestone Corp. (Tokyo:5108.T - News) unit Firestone announced recalls of defective tires