Cell phone call costs 5.2 mil
May 22, 2008 by Shane BorerPosted in: Insurance, Special report
Not updating company policies can cost an arm and a leg, but the latest cellphone-related disaster cost one woman her arm and the involved business a hefty settlement.
During the daily commute, most employees yell “hang up the cell phone” to at least a few distracted drivers. Because of a major lawsuit involving the Georgia’s International Paper Co., don’t be surprised to hear company lawyers chiming in with the same remarks — “If you’re at the wheel, be off the phone.”
Debra Ford was driving on Interstate 16 when she was rear-ended by an International Paper sedan driven by employee Vanessa McGrogan. In the accident, Ford’s arm was pinned under her car as it slid along the road. After multiple surgeries and attempted skin grafts, doctors were forced to amputate the arm up to her shoulder.
Normally, a company would be liable for damages and penalties related to an accident like this, but one key nabbed Ms. Ford a much larger settlement: McGrogan was on her company-issued cellphone during the time of the accident.
According to Ford and the call records, there was a two-minute gap between calls while she was on the road, and the tragic accident occurred during that small window. But a truck driver who’d seen the accident claimed that McGrogan had her phone up to her ear right before the accident.
Ford’s lawyers claimed the use of a company cellphone should be considered “unreasonable” under Georgia’s cellphone statute. Even though International Paper had a cell phone policy requiring the use of hands-free devices while in company vehicles, the business was still held accountable for McGrogan’s negligence.
Rather than let the case go to trial, International Paper gave Ford a $5.2 million settlement — $5 million for past and future suffering, with an additional $200,000 for medical expenses.
That was perhaps the best move the company could’ve made: When similar cases have gone to trial, companies are on the hook for an average $20 to $30 million.
The takeaway: Cell phone policies are a must-have for any company — especially one with road-warriors. But having one in place is only the first step: To protect a company from a devastating legal backlash, it’s important to show employees why such policies are in place and how much they can cost if they’re not followed.
Cite: Ford v. McGrogan, GA Superior Court, Dec. 14, 2007.
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May 23rd, 2008 at 3:20 pm
How would a company be able to monitor it’s ee’s with cell phones? Even if you have a policy in place it does not guarantee that the ee’s will adhere (as noted above).
May 23rd, 2008 at 3:57 pm
It may be difficult to monitor whether or not employees are adhering to the policy, but you could check their driving times against the phone records to determine if there are any common times.
While that may be a little challenging and have a “Big Brother” feel to it, the other potentially mitigating factor is that you have a policy and you have records to prove that the employees know, have read, and understand the policy. Consequently, they could be held accountable if they violate the policy.
Like any other policy – and this could be construed as a safety policy – there are no guarantees that all employees will follow it all the time. However, they should know that there are consequences if they choose to disobey/ignore the policy. It is incumbent on the employer to enforce its policies. Doing so may mitigate the employer’s liability and increase the employee’s liability.
May 27th, 2008 at 8:53 am
ACtualy with today’s cell phones you can track to see if they are driving and talking. In fact, you can actually check to see if they are speeding – even if they are not talking on the phone.
I have a friend working in healthcare whose company is switching to that technology. They use Verizon but I’m not sure what it’s called.
August 16th, 2008 at 1:51 pm
Why not supply drivers with bluetooth ear pieces if the vehicles are not equipped with bluetooth? It keeps the drivers hands on the wheel and lets them be in communication with their employer and clients while on the road.