Jenith
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There are a lot of companies under the Samsung conglomerate but Samsung Electronics is the most prominent, as it sells consumer products like smartphones, TVs, home appliances, etc. Headquartered in South Korea, Samsung Electronics also has overseas units that primarily focus on operations in a specific market, like Samsung Electronics America.
Corporate structuring can feel a bit confusing but many companies set up their operations this way. So ideally, Samsung Electronics America shouldn't have been on the hook for a $10.8 million lawsuit that was meant for Samsung SDI, but it's ended up having to take the hit for it.
Jordon Brewer from South Georgia sued Samsung in 2020 after a battery in his vape exploded while it was in his pocket. It was a 18650 cylindrical battery made by Samsung SDI, the conglomerate's battery division.
Brewer's lawsuit named Samsung Electronics America, and not Samsung SDI, as the defendant, even though the former has nothing to do with battery manufacturing. However, since this lawsuit was filed during COVID, Samsung Electronics America was working from home at that time and the delivery documents sent by the court essentially fell through the cracks. The company wasn't able to provide its legal response within 30 days.
Under Georgia law, defendants have to respond within 30 days otherwise they're designated to be in default. Once the statutory deadline of 45 days had passed, Samsung Electronics America no longer had a right to get out of the default state, despite its efforts to do.
By October 2020, the court had ruled Samsung Electronics America must pay $10.86 million in damages as the plaintiff had suffered injuries because of the exploding battery. While the judgment was appealed successfully and the award was withdrawn, the plaintiff then appealed that decision and after pursuring it for two years, received a favorable ruling.
The appeals court ruled last week that Samsung must pay $10.86 million in damages, as procedural lapses had diminished its defense. Samsung Electronics America intends to appeal this decision but if it's unable to get any relief, it'll need to pay the amount as compensation for a product it doesn't even make.
The post Samsung Electronics lost $10 million in a US lawsuit it had nothing to do with appeared first on imeisource.
Corporate structuring can feel a bit confusing but many companies set up their operations this way. So ideally, Samsung Electronics America shouldn't have been on the hook for a $10.8 million lawsuit that was meant for Samsung SDI, but it's ended up having to take the hit for it.
Procedural delays in lawsuits can be costly
Jordon Brewer from South Georgia sued Samsung in 2020 after a battery in his vape exploded while it was in his pocket. It was a 18650 cylindrical battery made by Samsung SDI, the conglomerate's battery division.
Brewer's lawsuit named Samsung Electronics America, and not Samsung SDI, as the defendant, even though the former has nothing to do with battery manufacturing. However, since this lawsuit was filed during COVID, Samsung Electronics America was working from home at that time and the delivery documents sent by the court essentially fell through the cracks. The company wasn't able to provide its legal response within 30 days.
Under Georgia law, defendants have to respond within 30 days otherwise they're designated to be in default. Once the statutory deadline of 45 days had passed, Samsung Electronics America no longer had a right to get out of the default state, despite its efforts to do.
By October 2020, the court had ruled Samsung Electronics America must pay $10.86 million in damages as the plaintiff had suffered injuries because of the exploding battery. While the judgment was appealed successfully and the award was withdrawn, the plaintiff then appealed that decision and after pursuring it for two years, received a favorable ruling.
The appeals court ruled last week that Samsung must pay $10.86 million in damages, as procedural lapses had diminished its defense. Samsung Electronics America intends to appeal this decision but if it's unable to get any relief, it'll need to pay the amount as compensation for a product it doesn't even make.
The post Samsung Electronics lost $10 million in a US lawsuit it had nothing to do with appeared first on imeisource.