Napolitano on Boeing scandal: Could face criminal liability

Channel: Fox Business
Published: 05/06/2019

Description
Fox News senior judicial analyst Judge Andrew Napolitano on the report that Boeing knew there was a problem with one of the safety features on its 737 Max planes. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main S...



Transcript
Bringing in now fox news, senior judicial analyst judge andrew napolitano so judge: does this leave bowen open to to criminal negligence? Well, the reporting of our colleagues at the wall street journal, which has been extraordinary, would indicate yes, boeing, of course, as jackie, so nicely reported has come back with sort of a ferocious response, as one would expect. So if the reporting of the ...
all street journal is correct, if boeing knew of defects and didn't report them to the faa and didn't tell their customers who bought these jets from them, then boeing is exposed to civil liability and potential criminal liability. We'Ll start with the more incendiary the potential criminal liability. Is this you havea duty to report defects. You fail to make the report and, as a result, innocent human beings die. What is that called? That'S called criminally negligent homicide. That would mean that a decision was made by some person not to report something that the law requires boeing to report. The potential civil liability is just as catastrophic for a boeing, because if, if plaintiffs lawyers can show that boeing by silence deceived its own customers, they will then ask to remove the caps on the liability or a per deceased person imposed by the warsaw convention. This may also affect boeing's insurance carriers covering of this and could expose boeing to having to become suddenly self-insured on these mattersso. We don't know where it's going to go. They obviously have a strong defense, but the wall street journal's reporting is extraordinary and powerful judge is isn't. The main question here for wall street looking at this is that we're gon na see an unprecedented fine from the faa to boeing right, something that they would have.

Never seen before, we've even seen, facebook's set aside over five billion dollars. Initially, three, you know for breaking rules, and so is that the main main worry for shareholders, or is it that unlimited cap from this avoidance? I think it's the latter. I don't know what the what the government's fine will be: it's easier for the government to find youthan for a jury to impose liability on, because the standard is so low. The regulators have so much more authority. You know, on top of that is the president's threats to increase the tariffs on china. So you know, there's a lot of factors and play here all at once. I don't know: did you guys hear just within the past 12 hours that 900 inspectors there looking to? Let go and that they want to replace those 900 inspectors with technology improvements, so that's just another side case to announce that during all of this - and i wonder if the ceo should step down, but this is a hypothetical situation. If you were defending boeing, what would youdo to try to mitigate any type of those those lawsuits you mean if i just learned about it today. Well, if you were, i would i would. I would be as open and honest as i can be, which, according to a jackie's report, boeing has been somewhat pushed back, but they will. They readily acknowledge what they knew when they knew it right. They were not honest until today, after the wall street journal piece came out, but look one must assume so there's a fascinating question kay parts.

One must assume that the truth will eventually come out and when one assumes that then council advises you to tell the truth from day one, they cannot reconstructhistory how to have been advising boeing all along. I would have said report this stuff. You don't tell the customers, they had legal counsel, though in the sidelines i don't. I don't know if they ever talk to their lawyers. About judge this is gary call tom. I was actually going to ask the other side of the question somebody going after boeing. What are the top three things? They'Re gon na hit him on as far as litigation - and you know boeing, i think, said today some of the effect, though they have no clue how much this is gon na cost, which means a heck of a lot. I guess so gary this is fact sensitive, meaning a factfinder. Probably a federal judge will determine what boeing knew and when it knew it and to the extent of silence or deception on the part of boeing, the more of the silence, the more deception, the more a jury will come down on them. That'S pretty basic church nap. It'S jonathan horny, thanks again for being with us, i mean look these. These crashes are terrible and your heart goes out to the victims, but air travel is unbelievably safe.

Your chances of dying in an aircraft accident about one in five million, your chances of dying walking down the street are about one in 500. So aren't these victims and families of these victims gon na have to provethat. This particular sensor was integral to these planes. Actually going down yes harder case to make than you initially think. No, yes, so the way would work is there'd, be a bellwether case. One plaintiff will all the power and might of their lawyers and experts against boeing and, however, that one turns out the courts will assume would be the same for all of the others. Boeing wins that it's off the hook. Boeing loses that it's gon na have to start selling real estate. You'Ll know burke's, not gon na be happy with me, but this is a real mess. What would you have to be the mediator in this.


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