United States of America v. Takata Corporation

Filing 10

ORDER denying amended notice of second Objection to guilty plea and request to modify proposed draft restitution order 7 and notice of second Objection to guilty plea and request to modify proposed draft restitution order 6 filed by Craig Hilborn. Signed by District Judge George Caram Steeh. (MBea)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
UNITED STATES OF AMERICA,
Plaintiff,
CASE NO. 17-mc-50300
HON. GEORGE CARAM STEEH

v.
TAKATA CORPORATION,
Defendant.
/

ORDER DENYING AMENDED NOTICE OF SECOND OBJECTION
TO GUILTY PLEA AND REQUEST TO MODIFY PROPOSED
DRAFT RESTITUTION ORDER (Doc. 7) and NOTICE OF SECOND
OBJECTION TO GUILTY PLEA AND REQUEST TO MODIFY
PROPOSED DRAFT RESTITUTION ORDER (Doc.6)
On February 27, 2017, Takata Corporation (“Takata”) pled guilty to
one count of wire fraud in violation of 18 U.S.C. § 1343, arising out of its
fraudulent misrepresentations regarding its defective airbag inflators to
Original Equipment Manufacturers (“OEMs”). On the same date, the court
entered a Restitution Order requiring, among other things, that Takata pay
restitution in the amount of $125,000,000 to the individuals who suffered or
will suffer personal injury caused by the malfunction of a Takata airbag
inflator who have not already resolved their claims against Takata. Now
before the court is an amended objection to the guilty plea, and a request
to modify the proposed draft restitution order. The objection was filed by
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counsel, Kevin R. Dean, who represents numerous plaintiffs in the pending
multi-district litigation before the Honorable Federico A. Moreno in the
United States District Court for the Southern District of Florida, involving
personal injury and wrongful death actions arising out of defective Takata
airbag inflators.
Specifically, Dean seeks to revise paragraph four of the Restitution
Order which provides:
The restitution of $125,000,000 allocated for the
aforementioned individuals shall be paid by the defendant
within thirty days of entry of the plea in this case. Upon the
later of (a) five years after entry of the plea in this case (the
time currently estimated by the defendant for the recall of its
defective products to be completed), or (b) the date upon
which such recall is complete, any funds remaining of the
$125,000,000 in restitution monies provided for in this
paragraph shall be paid to the United States. However,
upon reaching either date, the Special Master may request a
reasonable extension in light of unresolved or anticipated
claims, as circumstances warrant.

(Doc. 24). Dean complains that the time period before any funds
remaining from the Individual Restitution Fund revert to the United States
should be extended to ten years. As it currently stands, the funds revert at
the later of five years, or the date upon which the Takata recall is complete.
Dean also seeks to amend the language providing that the Special Master
may apply for a reasonable extension of time, to specifically provide that

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certain interested parties may also apply for time extensions. Dean
sought consent to his objection from Takata and the government, and both
opposed his objection. The court has carefully considered the language of
the Restitution Order and finds that it adequately protects those victims
who have been or will suffer personal injury caused by a defective Takata
airbag inflator.
Accordingly, Dean’s amended notice of second objection to guilty
plea and request to modify proposed draft restitution order (Doc. 7) is
DENIED. Dean’s notice of second objection to guilty plea and request to
modify proposed draft restitution order (Doc. 6) is DENIED AS MOOT.
IT IS SO ORDERED.
Dated: August 28, 2017
s/George Caram Steeh
GEORGE CARAM STEEH
UNITED STATES DISTRICT JUDGE

CERTIFICATE OF SERVICE
Copies of this Order were served upon attorneys of record on
August 28, 2017, by electronic and/or ordinary mail and also
on Kevin R. Dean, Esq., 28 Bridgeside Blvd.
Mount Pleasant, SC 29464.
s/Barbara Radke
Deputy Clerk

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