Journey with Confidence RV GPS App RV Trip Planner RV LIFE Campground Reviews RV Maintenance Take a Speed Test Free 7 Day Trial ×
RV Trip Planning Discussions

Go Back   iRV2 Forums > COMMUNITY FORUMS > RV Industry Press
Click Here to Login
Join iRV2 Today

Mission Statement: Supporting thoughtful exchange of knowledge, values and experience among RV enthusiasts.
Thread Tools Search this Thread Display Modes
Old 11-23-2010, 03:05 PM   #1
Moderator Emeritus
DriVer's Avatar
Winnebago Owners Club
Workhorse Chassis Owner
Coastal Campers
Carolina Campers
Join Date: Jan 2000
Location: Conway, SC
Posts: 23,641
Blog Entries: 70
Jury Finds Blue Bird Corporation Liable for Fraud

Jury finds Blue Bird Corporation liable for fraud, lawyer reports

BY: Greg Gerber posted on November 23, 2010 12:01
RV D@ily Report

BIRMINGHAM, Mich. -- On Nov. 18, an Ottawa County, Mich., jury rendered a verdict that Blue Bird Corporation committed intentional fraud, among other things, in that it knowingly manufactured 57 overweight and dangerous motorhomes and for two years, between 2004-2006, sold them to unsuspecting customers, a law firm representing victims reported today.

Blue Bird manufactured and sold these coaches, designated Blue Bird "Wanderlodge M450 LXi", at prices starting at $700,000 and reaching more than $1 million dollars.

The jury verdict stated that Blue Bird made the fraudulent statements with the intent that the statements be relied upon by its customer and that Blue Bird intentionally created a false impression about its product intending that its customer would rely upon it, said H. Joel Newman, a founding shareholder in the law firm of Hyman Lippitt PC.

The jury verdict was rendered in favor of Anthony McNeal, of Franklin, Mich., on his claims for fraud, silent fraud, breach of the Michigan Consumer Protection Act, and breach of implied warranty.

Newman, who served as McNeal's lead trial attorney, said he believes it is critical that this information finally comes to light six years after the first dangerous vehicle was manufactured, because this company manufactures and sells school buses that transport thousands of children every day.

The lawsuit alleged that the defects in these motorhomes, which Blue Bird denied and/or failed to disclose, were known for years, even as it continued to manufacture and sell the vehicles caused, among other things, a disproportionate number of front tire problems, especially on the curb side of the vehicle, said Newman. He believes at least one fatal accident was caused by the same defects the jury found. The fatal accident occurred in October 2007 ,and is the subject of a secret settlement between Blue Bird and the family of the decedent, said Newman.

Shortly after the accident, in December 2007, Blue Bird reported the problem to NHTSA. Customers were notified in March 2008. Blue Bird then conducted a recall which did not resolve the problem, said Newman. Then it conducted a second phase of the recall that resulted in additional problems, he added. Subsequently, a third phase recall was conducted. The jury found that the vehicle was still defective even after the third recall by Blue Bird, said Newman.

"During the trial, company witnesses admitted knowing the coaches were built with tie rods which did not meet their specifications," said Newman. "According to the witnesses, when Blue Bird learned of the tie rod problem, it failed to warn customers or dealers promptly, and continued to manufacture and sell the coaches. They also admitted that failed tie rods could result in loss of steering control.

"Company engineers admitted on cross examination that the company had weighed the coaches at the time of manufacture and knew of the overweight condition since 2004," he added. "Company witnesses admitted on cross examination that the coaches should never have been built or sold in their overweight condition."

Several of the engineers involved testified that the best fix would have been to reduce the weight of the coaches substantially, Newman explained.

According to the lawsuit, that would have been expensive, and was not done. "The lawsuit alleged that in the end, the company opted for a series of less expensive solutions," said Newman. "Hyman Lippitt PC believes in the interim, Blue Bird misrepresented the unloaded vehicle weights and the cargo carrying capacities of the coaches and continued to sell them.

"Months before the fatal accident in October 2007, Blue Bird sold its motorhome division to Coachworks Holdings, Inc.," Newman explained. "Coachworks' president, Dale T. Carson, testified that Blue Bird had not disclosed that the vehicles exceeded their axle weight ratings until after Coachworks had purchased the business. Mr. Carson testified that Coachworks learned of the problem after the purchase and never manufactured a single Wanderlodge M450 LXi. Coachworks is now in Chapter 11 bankruptcy."
03 Adventurer 38G, Workhorse W22
F&R Track Bars, Safety+ , Ultrapower, Taylor Extremes, SGII
TST 507, Blue Ox, SMI, Koni FSD, CrossFire
RV/MH Hall of Fame - Lifetime Member
DriVer is offline   Reply With Quote
Join the #1 RV Forum Today - It's Totally Free! RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? Do you need advice on what products to buy? Or maybe you can give others some advice? No matter where you fit in you'll find that iRV2 is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with other RV owners, see fewer ads, upload photographs, create an RV blog, send private messages and so much, much more!

Old 11-23-2010, 04:31 PM   #2
Community Administrator
NLOVNIT's Avatar

Pond Piggies Club
LA Gulf Coast Campers
Outdoors RV Owners Club
Entegra Owners Club
Skyline Owners Group
Join Date: Mar 2002
Posts: 39,184
Blog Entries: 1
Since Coachworks is in bankruptcy, where's the money going to come from to pay whatever settlement money is awarded?

Lori (& Dave, my spirit guide) - FMCA #F419886 | RV/MH Hall of Fame Lifetime Member
2016 Phoenix Cruiser 2350S & 2014 CRV EX-L AWD, My iRV2 Photo Albums
2018 Phaeton 40IH,2006 Bounder 36Z, 2004 Cougar 285EFS, 2000 Aerolite 25FBR
There is great need for a sarcasm font.
NLOVNIT is offline   Reply With Quote
Old 11-23-2010, 05:24 PM   #3
Senior Member
Noelj's Avatar
Join Date: Nov 2007
Location: Tennessee
Posts: 292
Don't know about settlements, but you better believe that the lawyers, will get theirs from somewhere.
Noel, Betty, one fuzzy little poodle that thinks he is a standard
2005 Gulfstream Ultra Supreme 30' 07 HHR Toad
[COLOR=seagreen][FONT=Palatino Linotype]
Noelj is offline   Reply With Quote
Old 11-23-2010, 06:04 PM   #4
Registered User
Vintage RV Owners Club
Gulf Streamers Club
Join Date: Oct 2010
Location: Indiana
Posts: 4,954
Ya.. bigwigs did wrong, people got hurt, they keep what they got, you get to bury your loved ones... Typical.
Midniteoyl is offline   Reply With Quote
Old 11-23-2010, 06:08 PM   #5
Senior Member
mfire1339's Avatar
Monaco Owners Club
Workhorse Chassis Owner
Join Date: Jun 2008
Location: Glendora Ca.
Posts: 1,582
Blue Bird has plenty of money. They sell a lot of buses.
2004 Monaco Monarch
Blueox, SMI, 1990 Wrangler YJ
mfire1339 is offline   Reply With Quote
Old 11-23-2010, 09:08 PM   #6
Senior Member
CorsairIIAT's Avatar
Join Date: Nov 2009
Posts: 600
Hopefully someone will see a settlement.
"I won't be wronged I won't be insulted I won't be layed a hand on. I don't do these things to other people. And I require the same from them." (John Bernard Books) John Wayne The Shootist his last Movie.
CorsairIIAT is offline   Reply With Quote
Old 11-23-2010, 09:42 PM   #7
Moderator Emeritus
RickO's Avatar

Join Date: Jan 2007
Location: Litchfield Park, Arizona
Posts: 10,530
Just sad. We all want to get government out of our lives but......

Rick, Nancy, Peanut & Lola our Westie Dogs & Bailey the Sheltie.

2007 Itasca Ellipse 40FD
RickO is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Blue Streak Automatic Chemical Dispenser DriVer Vendor Spotlight (Deals, Announcements & More) 3 10-07-2010 10:13 AM
Blue Bird NADA price guide Greg from Pittsburgh Class A Motorhome Discussions 4 01-01-2009 05:35 PM
81 Blue Bird Peabody Bus Conversions 3 10-12-2008 04:21 AM
Xantrex Echo~Charger BudtheDiplomat Monaco Owner's Forum 25 08-28-2008 01:23 PM
Blue Ox To Sponsor Campgrounds at Richmond International Speedway Throughout 2008 DriVer RV Industry Press 1 03-18-2008 04:38 PM

» Featured Campgrounds

Reviews provided by

All times are GMT -6. The time now is 07:41 PM.

Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2023, vBulletin Solutions, Inc.