A Florida appeals court ruled on Wednesday that Tesla will not face punitive damages in a wrongful death lawsuit accusing the company of overstating the capabilities of its Autopilot system. The decision marks a legal victory for the electric vehicle maker, reducing its potential financial liability in the case.
The 4th District Court of Appeal in Palm Beach overturned a lower court’s ruling that allowed a jury to consider punitive damages in the lawsuit filed by the estate of Jeremy Banner, who died in a 2019 crash involving a Tesla Model 3. Punitive damages, meant to penalize gross negligence or intentional misconduct, often exceed compensatory damages, which cover financial losses such as medical expenses and lost income.
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The appeals court found that “Tesla’s Autopilot features were ‘state-of-the-art’ and complied with all industry and regulatory standards.” It further stated that “Tesla cannot be liable for failing to provide technology that it did not advertise and that did not exist.”
Banner, 50, was killed when his Tesla, operating on Autopilot, crashed into the underside of a tractor-trailer that turned onto a road in front of his car near Miami. The lawsuit alleged that Tesla’s driver-assistance system was defective and unsafe for use on roads with cross-traffic.
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Tesla has denied responsibility, arguing that Banner failed to heed warnings about the limitations of Autopilot. Attorneys representing Banner’s estate previously told Reuters, “The jury should be able to punish a company such as Tesla that clearly has made the decision to put profits before safety.”