Petition for Writ of Certiorari — Redco Corp. v. CBS, Inc.

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Text

ae FILED

85- JUL 5 1995

No. ALEXANDER L. STEVAS,

SEEK

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38 a

IN THE

Supreme Court of the United States

October Term, 1985

REDCO CORPORATION,

Petitioner,

vs.

CBS, INC. and THE INSURANCE

INSTITUTE FOR HIGHWAY SAFETY,

Respondents.

PETITION FOR A WRIT OF CERTIORARI TO THE

UNITED STATES COURT OF APPEALS

FOR THE THIRD CIRCUIT

AT NO. 82-0263

DONALD L. REIHART

LAUCKS & MONROE

29 North Duke Street

York, Pennsylvania 17401

Tel.: (717) 848-4900

Attorneys for Petitioner

Batavia Times Publishing Co. oe

Edward W. Shannon

Philadelphia, Pa. (215) 232-8181

Questions Presented For Review

1. Does The First Amendment Provide CBS, Inc. The

Right To Broadcast Knowingly False And Defamatory

Information On Its “60 Minutes’ News Report, As A

Constitutionally Protected ‘“‘Opinion’’?

2. Did The District Court And Third Circuit Court Of

Appeals Err In Entering Summary Judgment By

Determining The CBS “60 Minutes” “Killer Wheels”’

Program Was True As A Matter Of Law?

3. Should Summary Judgment Be Vacated Where

The Supreme Court Of Pennsylvania Overruled State

Law Applied By The Federal District Court Placing The

Burden Of Proving Falsity Of Defamation On Redco

Corporation In A Libel Action Against CBS, Inc.?

4. Did The District Court And Third Circuit Court Of

Appeals Err By Entering Summary Judgment Before

Redco Had Been Permitted Full Discovery?

ii.

TABLE OF CONTENTS.

Page

Questions Presented For Review ................. i

Tees Ce 0 OP Sa ok Fao eae teehee ccess iv

Reference To Reports Of Opinions Below.......... vi

Statement Of Grounds For Jurisdiction ........... vi

Constitutional Provisions And Statutes Involved... vi

ge rr re er ere 1

ge err er ere 2

a Pe re ne Ke ee ee 5

Reasons For Allowance Of The Writ.............. 11

Fe reer es eo err ee 14

I. Does The First Amendment Provide CBS,

Inc. The Right To Broadcast Knowingly False

And Defamatory Information On Its ‘60

Minutes” News Reports, As A Constitutionally

Protectan “Te © ko ess hk4s che eek ck weed» 14

II. Did The District Court And Third Circuit

Court Of Appeals Err In Entering Summary

Judgment By Determining The CBS “60

Minutes” ‘Killer Wheels’? Program Was True

As A Mather GE GONE. 6 656 ceeciccaacaecinges 19

III. Should Summary Judgment Be Vacated

Where The Pennsylvania Supreme Court

Overruled State Law Applied By The Federal

District Court Placing The Burden Of Proving

Falsity Of Defamation On Redco Corporation

In A Libel Action Against CBS, Inc.? ........ 24

IV. Did The District Court And Third Circuit

Court Of Appeals Err By Entering Summary

Judgment Before Redco Had Been Permitted

PU TRGOINOEYT 5 os sc ivccackeeersweeeeeus 28

Come, ov ics ine 40050554 30

iii.

Page

Appendix A—Plaintiff’s Complaint with Killer

Ne ed ki aeG ey bho ka sce un sees la

Appendix B—Request for Findings of Fact........ 39a

Appendix C—Affidavit of Dr. Thomas W. Benson... 46a

Appendix D—Affidavit of Dr. Thomas Benson..... 5la

Appendix E—Affidavit of J. B. Sechrist .......... 69a

Appendix F—Motion to Supplement the Record... .112a

Appendix G—District Court Opinion Entering

Summary Judgment in Favor of CBS........... 117a

Appendix H—District Court Opinion Entering

Summary Judgment in Favor of IIHS .......... 155a

Appendix I—Third Circuit Court of Appeals

a ce cha wh peda wht eeiuw esse si 16la

Appendix J—First and Fifth Amendments to the

ES A eee 168a

Appendix K—Pennsylvania Statutes 42 Pa. C.S.A.

I aa PIG AA cia wecs ede dass sss 169a

Appendix L—Hepps v. Philadelphia Newspapers,

PIII CIN 8 bk n Sins 6 class cu edevecccn 170a

Appendix M-—Excerpts of John N. Bradley

EME MEDS Nise ogo a eas ds a whew st 209a

Appendix N—Excerpts of Dr. Roger McCarthy

SS CAM Oa Ribas ba be eawee ed see set 235a

iv.

Page

TABLE OF AUTHORITIES.

Cases:

Children v. Shinn, 168 Iowa 531, 150 N.W. 864

CREED yds RNAS wih aS ik DCRR RASS 20

Corabi v. Curtis Publishing Co., 441 Pa. 432, 273

PT a os KE aes CRE ek eke cena en 12,26

Cosgrove S.C.V. Shop, Inc. v. Pawe, 408 Pa. 314,

eS ee ee ee ee 23

Dunlap v. Philadelphia Newspapers, Inc., 301 Pa.

Super. 475, 448 A.2d 11 (1982)................. 24

E.D. Systems v. Southwestern Bell Tel. Co., 674

Fee Ge es: BI Es a S06 Ghbo cae iccs db kes 22

First National Bank of Boston v. Bellotti, 435 U.S.

765, 55 L.Ed. 2d 707, 98 S. Ct. 1407 (1978) ...... 18

Gertz v. Robert Welch, Inc., 418 U.S. 323, 41 L.Ed.

Od TED, G4 B. CR. BRT TESTE) ow cc wee cesses 14

Goldwater v. Gindburg, “61 F. Supp. 784, 786 (S.D.

NY 1966) aff’d 414 F.2d 324 (2nd Cir. 1969), cert.

Gath. Te TA ROO NPE: ca ce ieeccncsvecs 16

Goodrich v. Waterbury Republican American, 188

Conn. 107, 448 A.2d 1317 (1982) ............... 23

Hepps v. Philadelphia Newspapers, Inc., Pa.

, 485 A.2d 374 (Appendix L, p. 170a) . . . 13,24,26

Herbert v. Lando, 441 U.S. 513, 60 L.Ed. 2d 115, 29

Be Gs a hs Ch amce conse ws 18

Hickman v. Taylor, 329 U.S. 495, 91 L.Ed. 2d 451,

ie ye : BEAR Ory: eee ee 29

Hovey v. Elliott, 167 U.S. 409, 42 L.Ed. 2d 215, 17

i, Ss ee Ss As inc aeecec eG da na khenke eu 21

Marine Midland Bank v. Smith, 482 F. Supp. 1279

SUES 0 5 oa oe eck cea cae aah ees 22

Nader v. De Toledano, 408 A.2d 31, 54 (D.C. CA

1979), cert. den. 44 U.S. 1078 (1980) ............ 22

v.

Page

Pickering v. Board of Education, 391 U.S. 563, 20

L.Ed. 2d 811, 88 S. Ct. 1731 (1968)............. 19

Sellers v. Time, Inc., 229 F. Supp. 582, 585 (E.D. Pa.

BPRS DPR re or oe oo ne ae Fe ee ee 23

Steaks Unlimited, Inc. v. Deaner, 623 F.2d 264

gt a ee eee ss eee eee 21,25

Miscellaneous:

McCormick, Evidence, 2nd Ed. $11, p. 23.......... 16

Prosser, On Torts 3rd Ed. 1965 .................. 16

Restatement Torts Second §518A, comment c,

a MS Bia a es ota vawe eases’ 20

Restatement Torts Second §581A, comment g, p.

De ¢ <cks eek ele eek Rad eae eeensehede aia 27

vi.

Reference To Reports Of Opinions Below

The reports of both the District Court and the Third

Circuit Court are not known to be reported. A copy of

the opinions are set forth in the Appendix attached

hereto.

Statement Of Grounds For Jurisdiction

This Court has jurisdiction by virtue of the act of June

25, 1948, c.646 $1, 62 Stat. 928; 29 U.S.C. §1254(1).

Constitutional Provisions And Statutes Involved

Constitution: U. S. Constitution Amendment I and

Amendment V (Appendix J, p. 168a).

Statutes: Act of July 9, 1976, P.L. 586, No. 142 §2,

42] Pa. C.S.A. §8343(b). Appendix K, p. 169a).

IN THE

Supreme Court of the United States

October Term, 1985

No.

REDCO CORPORATION,

Petitioner,

VS.

CBS, INC. and THE INSURANCE

INSTITUTE FOR HIGHWAY SAFETY,

Respondents.

PETITION FOR A WRIT OF CERTIORARI TO THE

UNITED STATES COURT OF APPEALS

FOR THE THIRD CIRCUIT,

AT NO. 82-0263

Statement Of The Case

This Petition seeks review of a final judgment of a

federal court. The District Courts subject matter

jurisdiction is based upon diversity of citizenship and an

amount in controversy exceeding $10,000.00, 28 U.S.C.

1332(a)(1).

2

Procedural History

On March 3, 1982, Plaintiff, Recdco Corporation,

hereinafter referred to as ‘‘Redco’’ filed a Complaint

against Defendant, CBS, Inc., hereinafter referred to as

“CBS” and Defendant, The Insurance Institute for

H.ghway Safety, hereinafter called “IIHS.”

The Complaint alleged that on March 8, 1981, and

again on September 6, 1981, CBS brdcast a show titled

‘Killer Wheels’, Redco claimed defaration, trade libel,

intentional interference with business relations and

conspiracy by both Defendants. Appendix A, p. la).

Answers were filed by CBS on April 19, 1982 and by

IIHS on April 27, 1982.

On December 10, 1982, Redco filed a Motion for an

Order Compelling Discovery and a Motion to Compel

Answers to Interrogatories.

CBS filed a Motion seeking Summary Judgment on

December 27, 1982.

Redco, on January 4, 1983, filed a Motion for

Continuance of the Summary Judgment pening

completion of discovery. The Court granted the

continuance.

CBS filed a Motion for Reconsideration of the

Continuance. On April 5, 1983, the Court revoked the

continuance and directed Redco to answer and brief the

Motion for Summary Judgment.

On January 25, 1984, the Court, while holding that the

program was of and concerning Redco, granted Summary

Judgment because “the program was based upon true

facts, opinions based on true facts or matters of opinion

which did not imply the existence of non-disclosed

defamatory facts.”

3

Redco filed a Motion to Reconsider the entry of

judgment on March 2, 1984. On March 19, 1984, the

lower court denied Plaintiff's Motion to Reconsider and

directed IIHS to file a dispositive motion as the macter

would be listed for triai.

The Court also denied Redco’s request that a final

appealable order be entered against Redco pending the

disposition of the suit against ITHS.

On April 2, 1984, IIHS filed a Motion for Summary

Judgment alleging that all matters had been adversely

decided against Redco and under the Law of the Case

Doctrine, Summary Judgment had to be entered in its

favor.

On April 27, 1984, IIHS filed its Brief in Support of

the Motion for Summary Judgment.

On April 27, 1984, Redco filed a Request for Proposed

Findings of Fact and Conclusions of Law (Appendix B,

p. 39a), a Brief in Opposition to ITHS’s Motion for

Summary Judgment and an Appendix that contained the

affidavit of a television communications expert.

On May 10, 1984, IIHS filed a Motion to Strike

Redco’s Appendix.

On May 31, 1984, Redco filed a Motion for

Continuance to Supplement the record with the

deposition of Dr. Thomas Benson, the _ television

communications expert, to whose affidavit IIHS had

objected. Appendix F, p. 112a.

On June 14, 1984, CBS filed a Memorandum also

objecting to Redco’s Motion for Continuance to

Supplement the record with Dr. Benson’s testimony.

4

On July 16, 1984, the District Court filed an Opinion

and Order denying IIHS’s Motion to Strike, denying

Redco’s Motion for Continuance and entering final

Summary Judgment in favor of IIHS and CBS.

On August 7, 1984, the case was appealed to the Third

Circuit Court of Appeals.

On April 9, 1985, with oral argument being permitted,

an Opinion was issued denying the appeal.

A Petition for Reconsideration was filed and denied on

May 7, 1985.

This Petition followed.

Because judgment was entered in favor of CBS and

IIHS on the District Court’s finding that common

questions of fact and law governed the claim against

both Defendants, this Petition is limited to those

comr..un issues that control the action against both CBS

and IIHS.

wwatte

5

Factual History

Redco Corporation is located in Red _ Lion,

Pennsylvania, and manufactures multi-piece rims.

On March 8, 1981, and again on September 6, 1981,

CBS broadcast a segment on its “60 Minutes’’ news

program titled ‘‘Killer Wheels’”’.

The thrust of the program depicted all manufacturers

of multi-piece wheels as producers of a deadly product

that was needlessly killing innocent people for profit.

Appendix D, pp. 57a-61la.

Immediately following both broadcasts, Redco, the

smallest of five (5) manufacturers of multi-piece wheels,

suffered dramatic losses in sales and the cost of liability

insurance quadrupled.

The Redco rim consists of two pieces with a reverse

nine (9°) degree locking sui face. It is a safely designed

rim. There were no reports of any fatalities resulting

from over four million (4,000,000) sales of Redco rims.

Only a few reports of injuries had been noted as of

March, 1981.

The ‘Killer Wheels’”’ program indicated that frequent

deaths involving servicemen and innocent by-standers

were caused by the explosion of ai/ multi-piece rims.

On March 8, 1981, the Redco rim had not killed any

servicemen, innocent by-standers or unsuspecting

motorists by an accidental explosion.

The District Court, affirmed by the Court of Appeals,

determined that the factual matters broadcast in the

“Killer Wheels’ show, under existing law, was true

(Redco could not prove it false) and the innuendo

suggesting manufacturers were unethical for needlessly

killing innocent people represented a constitutionally

protected opinion.

6

The entry of Summary Judgment is most unusual

considering the sworn statements of two of Redco’s

witnesses.

Dr. Roger McCarthy of Failure Analysis Associates,

Palo Alto, California, a national expert on multi-piece rim

safety, testified that the factual matters broadcast in the

program were not true. Appendix N, pp. 242a-275a. He

concluded his evaluation of the program by stating:

“Well, from a technical point of view the factual

data is substantially incorrect. The overall direction,

thrust and statement of the program would have to

be termed deceptive because it misleads the public

as to the true safety and true benefits of multi-piece

rims...it could lead to increased accidents and

increased danger on the highway; and rather than

being an aid to safety it could work to decrease

safety in this country.’’ Appendix N, pp. 274a-275a.

Dr. Thomas Benson stated that CBS specifically

designed their ‘Killer Wheels’ show to impress the

public as a factual, not an opinion broadcast. Appendix

D, pp. 66a-67a.

The District Court’s analysis of what an average

viewer would believe is most puzzling when overlayed

with one specific finding of the Court. CBS had argued

that because Redco was not specifically named on the

program, it was not ‘‘of and concerning Redco.”’

The Court rejected this part of CBS’ argument and

held that under the settled legal principles of group libel

the average viewer could conclude that the program was

about Redco and Redco’s product.

Why then wouldn’t the average viewer believe that

Redco was killing people with its product? If Redco was

not killing people with its product and if the program

was about Redco’s product would not just the title

“Killer Wheels” be a defamatory publication?

7

The District Court, however, never answered these

questions. When they were brought to the attention of

the Appeals Court it simply stated ‘‘Because Redco

admitted its rim had injured people the fact that at the

time of the broadcast no one had died from injuries

sustained in a Redco wheel rim accident does not make

the general assertions about multi-piece rims untrue.’’

Appendix I, p. 165a.

The Court blindly limited its review to the generai

assertion that multi-piece rims are dangerous, as argued

by CBS. If the review had considered the actual

defamatory message of the ‘Killer Wheels’ show, as

concerns Redco, i.e. that it has killed people with its

product fer the profits, despite a safe alternative, the

error in the District Court’s Summary Judgment Order

would have been obvious.

To prove the actual message conveyed, Redco

presented the affidavit of a television communication

expert.

Dr. Thomas Benson stated that in the 60 Minutes

‘Killer Wheels’’ show:

“By using ‘special’ editing techniques and

structuring the show to induce predictable emotions

in the viewers. ..CBS ‘casts the show as a drama

involving innocent victims, friendly witnesses, or

indignant but objective reporters (backed up by the

resources of a network of information gatherers)

and a heartless industry with something to hide.’ ”’

Appendix D, pp. 66a-67a.

The “special” editing techniques were described by

Jack Bradley, a person interviewed on the program, as so

unfair that “it was not the same interview he had

given.”’ Appendix M, p. 220a.

8

Bradley testified that he was invited by CBS to New

York ‘‘to explain as an expert to CBS the different types

of truck wheels in use.’’ He had no idea he was being

brought there to be impeached and cross-examined.

Appendix M, pp. 215a-216a.

Dr. Benson in evaluating Mr. Bradley’s interview on

the program states:

“The techniques of interviewing and _ television

narrative employed in ‘‘Killer Wheels’ in such a way

as to make Jack Bradley represent the industry, and

to make him appear not only heartless but

dishonest. He is the only witness whose story is

cross-examined, his answers are clearly distorted in

meaning by their placement in context, and it may be

that editing has been used to put some of his

answers directly out of context, a fact which cannot

be verified without inspection of the pre-edited

interview materials.’”"' Appendix D, pp. 67a-68a.

and

Every reasonable viewer must believe at this point

in the broadcast that multi-piece rims are

dangerous...when Bradley makes an _ engineer’s

answer to the question of whether multi-piece rims

are dangerous (he says, “they are not dangerous’),

‘Jack Bradley requested a copy of an unedited transcript of his

interview with Mike Wallace. (R. 898a). He was refused a copy of the

transcript. This position is in contravention of CBS, Inc.’s own

published News Standards. (R. 1105a). CBS, refuses the similar

request of Redco despite Bradley’s consent on the ground that the

interview is constitutionally and statutorily privileged information.

The lower court did not determine whether the information should be

disclosed as the Summary Judgment rendered the matter moot.

9

any audience member who has seen _ the

demonstration films and mutilated victims and

grieving parents must take Bradley for a fool or liar.

Appendix D, p. 67a.

Bradley’s reaction to the ‘Killer Wheels’’ presentation

of his interview was one of shock. He insisted that the

questions and answers were not of order and were

changed around and edited into a completely different

program. Appendix M, pp. 223a-224a.

Paul Hykes, a former employee of the Budd Company

who had written a letter severely criticizing the RH5°

muiti-piece rim manufactured by The Budd Company,

was contacted by a CBS researcher. (R. 946a-951a).

In sworn testimony Mr. Hykes declared that he told

the CBS representative that his letter of 1969 was

‘““wrong.’”?

A report of Dr. Roger McCarthy had changed his

mind. He mailed a copy of the report to CBS. (R. 946a-

948a).

Dr. McCarthy found fatalities from miulti-piece

accidents were extremely rare, so rare, that random

lightning strikes killed ten (10) times as many people as

all servicing accidents with multi-piece rims. Appendix

N, p. 239a.

In early 1981, CBS was researching the program they

eventually broadcast on March 8, 1981, about multi-piece

rims.

* Mike Wallace used the letter to impeach Jack Bradley without

advising anyone that the letter had been recanted.

10

Dr. McCarthy spoke with the researcher for several

hours explaining that his research confirmed the safety

of multi-piece rims and the dangers of single piece wheels

that also have the same explosive potential as multi-

piece rims. Dr. McCarthy also referred the CBS

researcher to a Mr. Robert Gaines who was also doing a

study of multi-piece rims for the National Highway

Traffic and Safety Administration. (R. 836a, 837a).

The report prepared for South Coast Technology, Inc.

by Mr. Gaines, dated February 6, 1981, confirmed that

there were a substantial number of single piece accidents

that had occurred causing death and injury. The report

suggested that the single piece rim and the multi-piece

rim had about the same accident frequency. (R. 1050a).

we

11

REASONS FOR ALLOWANCE OF THE WRIT

The record establishes that a national television

network has manufactured a controversy and published

substantially false and misleading information. Redco

Corporation has suffered $250,000.00 or more in damages

and its products liability insurance has quadrupled.

Despite the losses Redco has been denied the right to a

trial by jury.

The District Court departed the accepted and usual

course of judicial proceedings in several additional ways.

First, the holding that the innuendo suggesting that

the manufacturers were ‘‘unethical’’ was a

constitutionally protected ‘‘opinion’’ was an unwarranted

extension of constitutional protection.

No viewer watching a CBS ‘60 Minutes’ Program

could reasonably be expected to believe that they were

receiving an “‘opinion’’ which was based upon less than

all the available facts. If CBS has performed journalistic

“dirty tricks’’ through unethical editing techniques® or

consciously suppressing known relevent facts which are

necessary to comply with their avowed public standards

of objective and truthful reporting, the “‘opinion’’ defense

should not be theirs to claim.

A national television network that holds itself out to

be reporting matters in a true and complete manner

should not have the right to knowingly publish false

information as a constitutionally protected opinion.

* Redco suspected CBS of distortion of interviews by improper editing

techniques and the very questionable use of techniques of persuasion

apparent to an expert in the field of television journalism. Appendix

D, p. 5la. Redco was denied discovery of “outtakes’’, only the

testimony of Jack Bradley confirms this factual question. (See infra,

pp. 67a-68a).

12

Next, the Court refused to characterize the libel

actually alleged by Redco. (See Request for Findings of

Fact and Conclusions of Law, Appendix B, p. 39a).

Rather, the Court, following the argument of CBS, held

the average viewer would only understand from viewing

the ‘‘Killer Wheels’ show that multi-piece rims were

“dangerous.

This characterization permitted the Court to find as a

matter of law that the program was “‘true.”’

Redco’s requested discovery that sought outtakes and

other material needed to establish intentional program

falsification and malice was held to be irrelevant and

9

moot .

sé

Even without the discovery, the record suggests, at

least, a factual question on whether CBS prepared and

published a program that it knew was simply not true.

Summary Judgment on the basis that the program

was true. . ignored the allegations of Redco’s Complaint,

(Appendix A, 7a-8a) and the law of Pennsylvania that

holds even the literal accuracy of separate facts will not

render a communication true if the implication of the

communication as a whole is false. Corabi v. Curtis

Publishing Co., 441 Pa. 432, 273 A.2d 899 (1971).

‘The television show portrays the defamatory message far more

effectively than the written transcript which is attached to Plaintiff's

Complaint. (Appendix A, p. 25a). The Court is urged to view the

program. A copy of the video taped program has been furnished by

CBS, Inc. and is part of the record. The Plaintiff will furnish the

necessary equipment to view the tape upon request by the Court.

13

Finally, while on appeal, the Pennsylvania Supreme

Court held constitutional a Pennsylvania statute placing

the burden of proving truth on the defendant. Hepps uv.

Philadelphia Newspapers, Inc., Pa. , 485

A.2d 374 (1984) (certiorari granted). (Appendix L, p.

170a. The Summary Judgment was entered on the

mistaken belief that the burden of proving truth could

not be placed upon the Defendant under the law of

Pennsylvania.

If this Court determines that the procedure is

constitutional as set forth in Hepps, the Summary

Judgment in this case should be vacated.

14

EXPANDED ARGUMENT

I. Does The First Amendment Provide CBS, Inc. The

Right To Broadcast Knowingly False And Defamatory

Information On Its “60 Minutes’’ News Reports, As A

Constitutionally Protected ‘“‘Opinion’’?

In Gertz v. Robert Welch, Inc., 418 U.S. 323, 339, 41

L.Ed. 2d 789, 805, 94 S. Ct. 2997 (1974), the court noted

that. . .“‘Under the First Amendment (Appendix J) there

is no such thing as a “false idea. ..However pernicious

an opinion may seem we depend for its correction not on

the judges and juries, but on the competition of other

ideas.”

If there is no such thing as a ‘‘false idea’, there is such

a thing as a “‘false opinion.”

There is strong evidence in the record that CBS knew

or had reason to know that multi-piece rims were not

safer than single piece rims and that the manufacturers

were not needlessly killing innocent people for profit.

Appendix N, pp. 235a-275a.

If ‘Killer Wheels’’ was an opinion of CBS News, there

are several valid reasons why such an opinion should not

be given constitutional protection.

First: Fifty-seven million (57,000,000) people saw the

broadcast of ‘Killer Wheels’. These viewers had been

conditioned to believe they were receiving truthful,

objective, factual reporting.

It is submitted of the fifty-seven million (57,000,000)

people who viewed the program, all but a small

percentage believed the show to be a factual news

program not an “‘opinion program.” (See Appendix C and

D, pp. 46a-68a). Redco alleges that it suffered

dramatic financial losses in lost sales and increased

15

insurance costs. Whether the losses were caused by an

intentionally fabricated opinion or the _ intentional

publication: of false facts...the harm is the same. How

can a small corporation like Redco reach fifty-seven

million (57,000,000) people to correct the erroneous and

defamatory message?

There is only one answer. If the opinion is falsely held

and Redco can prove the falseness, then a jury trial

should be allowed. The concept that a “pernicious

opinion” can only be corrected by other ideas is

impractical and unrealistic when applied to a national

television network.

Second: Granting unlimited power to a_ giant

television network in the form of “opinion immunity”

encourages irresponsible use of the freedom. Why would

CBS fabricate a controversy and express a falsely

libelous opinion? The answer is profit.

Broadcasters are vehement in their claim for a need to

be free of censorship in new dissemination. When

motivated by lofty values and a genuine desire to tell the

truth to the public, there should be no restraint.

However, human beings often depart the ideal and lofty

values are somtimes jaded by more mundane ones. When

it is more profitable for a corporation to lie, it may do so.

Access to a jury trial is the only safeguard an individual

has against abuse by any large corporate news network.

An “opinion immunity” as interpreted by CBS and

applied by the lower federal courts all but removes this

safeguard.

Third: The expression of defamatory opinions that

cause serious damage creates a conflict within the

constitution. Property is not to be taken without due

process of law under the Fifth Amendment. Appendix J,

p. 168a.

16

In ‘Killer Wheels” Redco was tried and convicted with

evidence that would not have been admitted against it in

a court of law. It was denied the right of cross-

examination. It has suffered substantial damage and has

been denied a jury trial. In the zeal to protect a First

Amendment right of CBS, a Fifth Amendment right of

Redco has been violated.

Fourth: The “opinion-fact’ distinction is just not

capable of fair application.

Courts have been struggling unsuccessfully with the

distinction between fact and opinion for decades.

Goldwater v. Gindburg, 261 F. Supp. 784, 786 (S.D. NY

1966) aff'd 414 F.2d 324 (2nd Cir. 1969) cert. den. 396

N.S. 1049 (1970), quoting Prosser oi. Jorts, 3rd Ed. 1965

(distinction “has proved to be most unsatisfactory and

an unreliable one, difficult to draw in practice’) of

McCormick on Evidence $11 at 23 (2nd Ed. 1972):

The classic formula, based as it is on the assumption

that ‘“‘fact’’ and ‘‘opinion’’ stand in contract and

hence are readily distinguishable, has proven the

clumsiest of all tools furnished the judge for

regulating the examination of witnesses. It is

clumsy because its based assumption is an illusion.

There is just no sound, logical or reasonable device for

distinguishing statements of fact from statements of

opinion. The difficulty has permitted subjective beliefs of

the District judge to deny Redco a trial by jury. There

are no standards to measure what is and what is not an

opinion. It has become a matter, perhaps because of the

uniqueness of the media, over which able minds can

reasonably differ.°

‘The District Judge viewing ‘‘Killer Wheels” agrees with CBS that

the program is an “opinion.” Dr. Thomas Benson, a television

communication expert has filed an affidavit that the average viewer

would understand the program as ‘‘fact.'’ Appendix C and D, pp. 46a,

66a-67a.

17

It is submitted that the question is really one for the

jury. Expert witnesses and proper instructions bring a

measure of reason to an otherwise unreasoned part of the

law. Proof of defamation should be the Plaintiff's burden

before the jury, like any other element in the case.

Whether the defamation is cast as an “opinion”’ or an

assertion of fact, the damage is the same. The instant

exposure of defamatory matter to fifty or one hundred

million people has so drastic an effect, that the source of

such broadcasts must be compelled to act responsibly.

The ambiguity of the “‘opinion-fact’’ approach encourages

irresponsibility. The ‘‘opinion fact’’ distinction should be

abandoned by the Court where it can be shown that the

opinion was falsely or maliciously expressed.

Fifth: The potential for serious harm resulting from

opinions is the same as factual assertions. For example,

in Maryland, as a result of the ‘“‘Killer Wheels’ show, an

effort was made to force the replacement of all multi-

piece wheels on school buses with single piece wheels. (R.

754a-780a). Appendix E, pp. 75a-86a.

The Phase IV Report of Failure Analysis Associates

states that:

Single piece rims and tubeless tires in school bus use

have demonstrated a total accident frequency 13

times higher than multi-piece wheels and 25 times

higher on the highway. P. 23 (R. 1029a).

Redco submits that the potential effect for ill cause by

the program requires close scrutiny by this Court.

Society’s interest in ‘‘order and morality’ mandate

sufficient effort at truth telling by a major television

network to avoid harm to the open minded viewer.

18

The efforts of Maryland’s school administrators to act

on the false information disseminated by CBS in the

‘Killer Wheels’’ show is ample evidence of the improper

factual message conveyed and understcod. (R. 754a-

780a). Appendix E, pp. 75a-86a).

Finally, a national broadcasting company like CBS

possesses almost unlimited power to persuade the public

to its point of view. If the power is abused it may harm

vast numbers of people. If false opinions are

communicated there is no way the average citizen who is

harmed can correct the falseness. There is no remedy if

those injured are left to compete with a broadcast giant.

Such power, unshackled, can cause muc’: mischief.

Chief Justice Berger recognized the problem in his

concurring opinion in First National Bank of Boston v.

Bellotti, 435 U.S. 765, 55 L.Ed. 2d 707, 98 S. Ct. 1407

(1978).

.. medical conglomerates as I describe pose a much

more realistic threat to valid interests than do

appellants [Bank associations...] The growth of

modern media empires ‘“‘has been to place in a few

hands the power to inform the American people and

shape public opinion.” p. 731.

Constitutional rights should be shared equally or be

subject to restraint. In Herbert v. Lando, 441 U.S. 513,

60 L.Ed. 2d 115, 29 S. Ct. 1635 (1979), Justice White

explains:

Those who publish defamatory falsehoods with the

requisite culpability. ..are subject to liability. The

aim being not only to compensate for injury, but

also to deter publication of unprotected material

threatening injury to individual reputation. Id. at

131.

19

Constitutional rights should never encourage or permit

national television networks to knowingly mislead the

viewer. Deliberate or reckless falsehoods serve no First

Amendment ends and deserve no protection under that

Amendment. Pickering v. Board of Education, 391 U.S.

563, 583, 20 L.Ed. 2d 811, 826, 88 S. Ct. 1731 (1968).

The First Amendment should not permit a nati nal

television news network to publish knowingly false and

defamatory information as a constitutionally protected

“opinion.”’

II. Did The District Court And Third Circuit Court

Of Appeals Err In Entering Summary Judgment By

Determining The CBS ‘60 Minutes” “Killer Wheels”

Program Was True As A Matter Of Law?

The District and Appellate Court also made the

determination that the ‘‘Killer Wheels’’ was true despite

the fact that the record established that the Redco wheel

had not killed anyone.

The District Court made the determination that the

‘Killer Wheels’’ broadcast was true as a matter of law.

It did this by addressing specific statements Redco

claimed were dafamatory. Appendix G, pp. 137a-143a.

Instead of determining whether the statements were

defamatory, the Court set about determining if they were

true and concluded as a matter of law that they were.

“ach of the statements and actions were likewise

analyzed by Dr. Roger McCarthy, an expert on multi-

piece rim safety. Appendix N, pp. 242a-275a. Dr.

McCarthy’s sworn analysis was contrary to the Courts’

conclusion. As an engineer, he found the statements

untrue.

20

...it (Killer Wheels) was erroneous in its overall

thrust. It was affirmatively misleading in _ its

statements about single piece rims. In general I

would say to the extent that it had factual

information to convey, a substantial portion of those

observations that purported to be facts were just

plain wrong. Appendix N, p. 243a.

This testimony of Dr. McCarthy raised serious factual

issues that could only be resolved in a jury trial.

The District Court correctly ruled that the program

was of and concerning Redco:

The fact that Redco was not specifically named in

the broadcast is not controlling. A party alleging

defamation need not be specifically named in the

description or circumstances tend to identify the

party. Appendix G, p. 129a.

Redco’s expert in television communication stated that

the average viewer would believe that all multi-piece rims

kill people and that the manufacturers do this because

they do not care about the human suffering caused by

their product. Appendix C and D, pp. 47a, 52a-53a.

If the Redco rim had killed no one (see Appendix E, p.

72a). . how could the Court correctly rule as to Redco that

the program was true? If group libel is alleged in which

Plaintiff is not named but is readily identified because of

the smallness of the group (decided in Redco’s favor),

then the statement must be true as concerns the

plaintiff. Restatment Torts Second, §518A, comment C,

§564A, comments B, C, D; Children v. Shinn, 168 Iowa

531, 150 N.W. 864 (1915).

The question of truth is a question for the jury.

Restatement Torts Second, §617(b).

‘s

ee

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Pie HERMON ove

0 5 eas RRR MRE Ae HES 9

21

For the Court to rule that the program was of and

concerning Redco and that the viewers would understand

the “Killer Wheels” program to be about Redco, but that

they would not understand Redco to be making a ‘‘killer

rim”’ that was causing part of the “‘needless killing”’ is an

egregious error.

The Court ignored the inconsistency and followed the

argument of CBS that the program simply stated that

multi-piece rims are ‘‘dangerous.’”®

Whether a broadcast can be understood as being

defamatory is for the Court to decide. Steaks Unlimited,

Inc. v. Deaner, 623 F.2d 264 (3rd Cir. 1980).

However, the Court is bound to safeguard ‘‘due

process”’ in the exercise of its function. Hovey v. Elliott,

167 U.S. 409, 42 L.Ed. 215, 17 S. Ct. 841 (1867). It is the

function of the Court to determine if the publication is

capable of a defamatory meaning as it could be

understood by the average viewer. Steaks Unlimited,

Inc., supra, p. 269.

Redco submits it was a fundamental error of law for

the Court to decide the statements were true. Under

Pennsylvania law, the Courts role in a libel case is to

determine if the statements are capable of a

“‘defamatory”’ meaning. The jury is to determine whether

the statements are true. Appendix K, p. 169a.

Restatement Torts Second, §617B.

*No Plaintiff could ever win any law suit claiming libel when the

defendant is permitted to state the issue involved. A publication

falsely asserting that a woman murdered her husband by stabbing

could be characterized as a program stating that knives are

dangerous. Could the plaintiff ever win an argument that knives are

not dangerous or that this assertion was only a constitutionally

protected opinion?

22

While Redco’s experts could not control the Court’s

view of the program, absent some extraordinary cir-

cumstances not here present, the District Court should

have explained why the experts’ evaluation concerning

what its average viewer would understand was not being

followed. These matters were squarely presented to the

Court in Redco’s proposed Request for Findings of Fact.

Appendix B, pp. 40a-41a.

Redco is entitled to all reasonable inferences that flow

from the evidence being drawn in its favor. Marine

Midland Bank v. Smith, 482 F. Supp. 1279 (1979). In

considering the propriety of entering Summary Judg-

ment in a libel case, the Court must determine whether

under the facts construed in light most favorable to Red-

co, whether the broadcast is capable as being understood

as defamatory.

If the libel is characterized as an assertion that Redco

has produced a product that has killed people (Appendix

C and D, pp. 46a-68a) there is an issue of fact as Redco

denies killing people with its product. (Appendix E, p. 72a).

If the libel is characterized that multi-piece wheels kill

while single piece wheels do not, there is an issue of fact

as this point is controverted. Appendix N, pp. 247a-248a. If

the libel is characterized as Redco needless killing for the

profits to be made, this too, creates an issue of fact as

Redco denies the statement.

Even when the underlying facts are not contested (the

facts are contested in the instant case), there may remain

fact questions on inferences to be drawn from the facts

which preclude Summary Judgment. Nader v. De

Toledano, 408 A.2d 31, 54 (D.C. C.A. 1979) cert. den. 44

U.S. 1078 (1980); E.D. Systems Corp. v. Southwestern

Bell Tel. Co., 674 F.2d 453 (C.A. Tex. 1982).

Ne naacdies

23

While CBS has characterized the libel as dealing with

the “dangers of multi-piece rims’’ and that all the

defamatory facts were true, the facts and the inferences

drawn from the broadcast readily permit characterization

of the libel as submitted by Redco and confirmed by its

experts.

The assertion that Redco is killing people witt. its

product for the profits to be made, if false, is clearly

libellous. Such a communication goes beyond hyperbole,

suppant style, or colorful language permitted Sellers v.

Time, Inc., 229 F. Supp. 582, 585 (E.D. Pa. 1969);

Goodrich v. Waterbury Republican American, 188 Conn.

107, 448 A.2d 1317 (1982). Such a communica-

tion. . “harms the reputation of another as to lower him

in the estimation of the community or to deter third per-

sons from associating or dealing with him.” Cosgrove S.

C. V. Shop, Inc. v. Pawe, 408 Pa. 314, 318, 182 A.2d 751,

753 (1962).

For the Court to enter a Summary Judgment on the

basis that the publication was ‘‘true’’, is contrary to the

law and facts presented.

The Redco rim is not a “‘killer wheel.’’ It has killed no

one. The technical facts presented by CBS are not true.

An issue for detemination by the jury is present. The

Suramary Judgment should be vacated and a jury trial

ordered.

24

III. Should Summary Judgment Be Vacated Where

The Pennsylvania Supreme Court Overruled State Law

Applied By The Federal District Court Placing The

Burden Of Proving Falsity Of Defamation On Redco

Corporation In A Libel Action Against CBS, Inc.?

The District Court noted: ‘““CBS claims the Redco can-

not refute the veracity of the statements and that Redco

merely is upset that more favorable facts or opinions

were not presented in the program.” Appendix G, p. 127a.

The District Court then set forth the principles of law

that placed the burden of proving falsity of the publica-

tion upon Redco. Appendix G, pp. 133a-135a.

The case was briefed, argued and decided on the con-

cept that under Pennsylvania law, Redco had to prove

the falsity of the publication. The Court entered Sum-

mary Judgment and the Appeals Court affirmed on the

same basis.

On December 14, 1984, the Supreme Court of Fennsyl-

vania in Hepps v. Philadelphia Newspapers, Inc., Pa.

, 485 A.2d 374 (1984) (certiorari granted) (Appendix

L, p. 182a), overruled Dunlap v. Philadelphia Newspapers,

301 Pa. Super. 475, 448 A.2d 11 (1982) relied upon by the

District Court. The Hepps decision held the Penn-

sylvania statute placing the burden of proving the truth

of a defamatory publication on the defendant was con-

stitutional.’

7 Burden of Defendant—In an action for defamation, the defendant

has the burden of proving, when this issue is properly raised:

(1) The truth of the defamatory publication.

— ae es

42 Pa. C.S.A. §8343(b)(1).

Pe re ene ae

25

The dramatic change in the law was brought to the at-

tention of the Third Circuit Court of Appeals by a Peti-

tion for Reconsideration that was refused without opi-

nion.

It is submitted that the Pennsylvania law placing the

burden of proving truth on the Defendant in a libel ac-

tion is constitutional. Justice Nix in a well reasoned opi-

nion explained the decision of the constitutional issue as

follows:

“We are satisfied that Pennsylvania law makes a

constitutionally acceptable accommodation between

the freedom of expression required by the First

Amendment and our law of civil libel for compen-

-satory damages brought by a private individual to

redress defamatory falsehood...The First Amend-

ment has not been extended...to condone or en-

courage irresponsible conduct by the media in its ex-

ercise of informing the public of newsworthy events.

Nor can we conceive of a constitutionally protected

interest in condoning the media’s malicious or

negligent discharge of this responsibility. Free

debate will not be encouraged by allowing it to

become the forum for malicious or negligent abuse

of the reputation of those involved in the controver-

sy. The right to criticize must carry some degree of

responsibility, particularly where it may jeopardize

the reputation of a private citizen.”

The decision of the Pennsylvania Court creates a con-

flict with many other federal decisions, including the

Third Civcuit Court of Appeals. Steaks Unlimited, Inc. v.

Deaner, 623 F.2d 264, 274-75 N. 49 (3rd Cir. 1980).

It is submitted that this Court should follow the Penn-

sylvania Supreme Court’s decision to require that the

burden of proving truth to be on the Defendant.

Re eee

26

Does the Hepps decision really make a difference con-

cerning this case?

Redco was forced to prove that their product was not a

‘‘killer.”” The fact that Redco had no evidence that it

had not killed was not good enough for the District

Court. Redco could not prove the negative.

In Hepps, the Court specifically recognized the difficul-

ty of putting the burden on the Plaintiff to prove falsity

previously noted in Corabi v. Curtis Publishing Com-

pany, 441 Pa. 432, 273 A.2d 899 (1971).°

...Where the accusation is totally general and

without specificity necessary for a response, the

absence of such a presumption would force the

Plaintiff in the unenviable position of proving the

negative.

Hepps, supra, 378 (citing Corabi, supra, at 450, 273 A.2d

at 907).

The Defendants presented no evidence that Redco rims

had killed people. The Defendant produced no evidence

that single piece rims are a safe alternative to multi-piece

rims. The Defendants produced no evidence that Redco

was knowingly selling a “‘killer’’ product for the profits

to be made.

The Defendant has produced no evidence that the

Plaintiff Redco has done any of the defamatory matters

charged in the program.

The Appellate Panel’s statement that, ‘‘the fact that at

the time of the broadcast no one had died from injuries

sustained in a Redco accident does not make the general

assertions about multi-piece rims untrue’, is a misap-

plication of law caused by the placement of proving falsi-

ty on Redco.

* Pennsylvania by statute hes not made truth an affirmative defense.

Act of July 9, 1976, P.L. 586 No. 142, §2; 42 CPSA §8343(b)(1).

!

27

The Restatement of Torts Second, §581A, comment g.,

p. 237, specifically holds that truth as a defense must be

determined at the time of the publication.

“Facts alleged to exist by the defamer may

subsequently occur, but his foresight or luck in

anticipating them will not protect him from liability

for stating their pre-existence.”’

CBS has not and cannot prove the truth of the

defamatory assertions of their program.

If the burden is put on the Defendant to prove truth,

then the question of whether or not the false and

defamatory statements made by CBS were true, becomes

a jury question as a matter of law. Restatement Torts

Second, §617B.

The Summary Judgment entered by the District Court

should be vacated and a jury trial orderev

28

IV. Did The District Court And Third Circuit Court

Of Appeals Err By Entering Summary Judgment Before

Redco Had Been Permitted Full Discovery?

Redco promptly filed a Motion to Compel when CBS

refused to release the ‘‘outtakes’’® and other documents,

notes, memoranda, and including the producer’s ‘‘blue

sheet’’ developed or used in the production of ‘Killer

Wheels.”’

In support of the Motion, counsel for Redco affirmed

that Redco desired to obtain an affidavit of Dr. Benson

after he had an opportunity to review the outtakes.

Redco also alleged the need to review the material to

prove that it was false in context.

Later in an affidavit represented by the Court to

enumerate facts alleged to be in dispute or need to be

identified, Redco again requested the outtakes of Jack

Bradley’s interview to determine if CBS falsely presented

the context of his interview.

The Court granted judgment without compelling any

discovering holding the discovery request moot.

Much if not all of the informating concerning the

truthfulness of both the factual assertions and the so

called truthful disclosed facts that formed the basis of

the shows “opinion” were in the exclusive control of

CBS.

Redco needed the discovery to allow its expert to pro-

vide additional professional opinion testimony to the

Court concerning what the average viewer would

understand and why, that the literal factual statements

though true were false in context and why. And, finally,

* The portions of the video taped interviews not televised in the pro-

gram.

destin

it ‘a

soo alah

29

because a visual medial was involved, how the

presentation of the viewed material created a meaning

different from what the written transcript allegedly

communicated. Appendix F, p. 112a.'°

‘60 Minutes” is a news program. CBS has published

written standards representing their news presentations

to be truthful and objective.

Mike Wallace, a CBS correspondent, testified in deposi-

tion that the published standards of CBS were pro-

mulgated and adopted to assure accurate, undistorted,

impartial and truthful presentations of news programs.

(R. 826a).

There is a kind of fraud involved when a national

broadcast company surreptitiously violates its public

statement of what it is broadcasting to the news viewers.

Discovery of the extent of the fraud was important to

preparation of the case.

The denial of Plaintiff’s discovery was fundamental er-

ror. The discovery rules were adopted to obtain the

fullest possible knowledge of the issues and facts before

trial. Hickman v. Taylor, 329 U.S. 495, 91 L.Ed. 2d

451, 67 S. Ct. 385 (1947).

'° Television is unique. Written transcripts cannot provide the context

of the message. For example, in a television drama, the portrayal of a

child with teasing eyes who gently takes her father’s hand, looks up

and says ‘I hate you”’ in a soft and musical voice. . .communicates to

the viewer a message that is completely opposite to the spoken

words. The importance of having outtakes in a television libel case

cannot be overemphasized. Where truth of the communication is at

issue or where the segments are argued as opinions it is only with the

outtakes that an expert can determine what question was asked and

answered in fact as compared to what was broadcast. An apparently

truthful statement on the broadcast may in fact be false in the actual

context given.

30

Conclusion

In “Killer Wheels”, CBS crossed the line that

separates the mere exploitation of a constitutional right

from its unreasonable abuse.

Redco has suffered substantial damages from the

premeditated publication of knowingly false and

defamatory information.

Redco has been denied the opportunity to prove its

claim before a jury because the Lower Federal Courts

have decided that the Constitution and libel law requires

this result.

Either the Lower Courts are in error or the law should

be changed.

Redco prays your Honorable Court to vacate the Sum-

mary Judgment entered in favor of CBS and ITHS.

Respectfully submitted,

LAUCKS & MONROE

By: DONALD L. REIHART

Donald L. Reihart

29 North Duke Street

York, Pennsylvania 17401

Tel: (716) 848-4900

Attorneys for Petitioner

APPENDIX A

Plaintiff's Complaint with Killer Wheels Transcript

IN THE

UNITED STATES DISTRICT COURT

For the Middle District of Pennsylvania

CE

REDCO CORPORATION,

Vs.

CBS, INC., and THE INSURANCE

INSTITUTE FOR HIGHWAY SAFETY.

tS acl D Sia AI AIO PS

Civil Action—Law

No.

Jury Trial Demanded

CPt ALPE LEP Shag 08 be

COMPLAINT

_ AND NOW, TO WIT, this 3rd day of March, 1982,

) comes Piaintiff Redco Corporation by its attorneys,

Laucks & Monroe, and files this Complaint of which the

' following is a statement:

att POA:

1.

Jurisdiction is founded on diversity of citizenship and

_ amount in controversy in excess of $10,000.00 (28 U.S.C.

) $1332(a)(1)).

2.

Plaintiff Redco Corporation is a small, family owned

' Pennsylvania corporation with offices in Red Lion, York

_ County, Pennsylvania.

2a

Appendix A—Plaintiff's Complaint with

Killer Wheels Transcript.

3.

Defendant CBS, Inc., (hereinafter referred to as

CBS") is a New York corporation, with offices at 51

West 52nd Street, New York, New York, 10019.

4.

Defendant The Insurance Institute for Highway Safety

(hereinafter referred to as “IIHS”’) is a _ national

association with offices at 600 New Hampshire Avenue,

Suite 300, Washington, D. C., 20037.

5.

Plaintiff Redco Corporation is a manufacturer of multi-

piece rims for trucks, buses, and recreational vehicles.

6.

Plaintiff is one of five manufacturers of multi-piece

wheel rims in the United States.

G

Each of the acts of Defendants alleged herein was

accomplished by an employee or agent of Defendants

acting within the scope of his or her employment.

8.

On March 8, 1981, Defendant CBS, Inc. by its news

division CBS News broadcast a television program

entitled ‘Killer Wheels’ over nationwide network

television, which program was rebroadcast on September

6, 1981. The prograru was a part of the CBS magazine

‘60 Minutes.’ A copy of the transcript of said broadcast

is marked Exhibit A, attached hereto and incorporated

by reference.

3a

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

9.

Defendant CBS represents its program ‘60 Minutes’’

to be factual non-fiction news-reporting program and not

a forum for fictional presentations.

10.

Millions of television viewers were exposed to each of

the two broadcasts.

COUNT I

TRADE LIBEL — DISPARAGEMENT

11.

All preceding and succeeding paragraphs are hereby

incorporated by reference.

12.

Defendant CBS by its news division in preparing and

editing the broadcast used statements, innuendo,

overstatements, unfair comparisons and _ distorted

analogies which were false and misleading concerning

Plaintiff and the products manufactured by Plaintiff.

13.

The false and misleading statements, innuendoes,

Overstatements, unfair comparisons, and _ distorted

analogies included but were not limited to the following.

A. Many truck drivers and tire mechanics call

multi-piece rims ‘killer wheels.”’

4a

Appendix A—Plaintiff's Complaint with

Killer Wheels Transcript.

B. Accidents involving multi-piece wheel rims

according to United States Government statistics

have killed more people than have died in accidents

involving the Ford Pinto or the Firestone 500 tire.

C. The broadcast included a film prepared by

Defendant IIHS which film involved the use of a

severely altered multi-piece rim prepared for the sole

purpose of making the rim explode.

D. When a multi-piece rim explodes it hits

whatever is in the way, which is ‘‘very often” a

serviceman's head.

E. Multi-piece rims spontaneously fall out of

place.

F. It is untrue that multi-piece rims are not safe

unless improperly serviced.

G. Accidents involving multi-piece rims often

involve innocent bystanders.

H. The multi-piece rim is more hazardous than

the single piece rim.

I. ‘A good number of accidents occur after the

tire is inflated and out of the safety cage.”

J. Paul Hykes, a former chief engineer of a multi-

piece rim manufacturer, is of the opinion that multi-

piece rims are dangerous.

K. Data showing problems regarding one single

model of multi-piece rims applies to all multi-piece

rims althuugh designed differently.

5a

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

14.

Defendant CBS, Inc. knew that the broadcast was

false and misleading or in the alternative acted in

reckless disregard of the truth of the broadcast for the

following reasons:

A. Defendant prepared the broadcast without

collecting sufficient objective evidence and relied

upon data which formed no technical basis for the

conclusions presented in the broadcast.

B. Defendant had a Value Engineering report

which showed that the multi-piece rim shown in the

Insurance Institute for Highway Safety film was

severely altered for the sole purpose of making the

rim explode. Despite this information Defendant

displayed the film without any explanatory

comment.

C. Defendant had been provided with a report

titled ‘“‘Phase III” and data collected by Failure

Analysis Associates, a leading failure analysis firm

which found that multi-piece rims are safe

unless improperly serviced. A copy of the Phase III

report had been mailed to Defendant. Defendant

made no reference to this report in its broadcast.

D. Defendant knew that the letter by Paul

Hykes read in the broadcast no longer represented

Mr. Hykes’ opinion. Mr. Hykes had told Defendant

that he had recanted his previous opinion and

actually gave Defendant full data to back up his

new opinion that multi-piece rims are safe.

6a

Appendix A—Plaintiff's Complaint with

Killer Wheels Transcript.

15.

The publicity presented by Defendant CBS in its

broadcast was solicited by Defendant IIHS.

16.

Defendant IIHS provided much of the unfair, slanted,

improper evidence used by Defendant CBS in its

program, including, inter alia: Defendant IIHS prepared

the film used on the presentation ‘‘Killer Wheels’’ which

purported to show the hazards of explosion of multi-piece

rims and Defendant IIHS knew that such explosions

could only be achieved by altering the product severely

from its original manufactured form in a fashion which

does not occur under normal use.

17.

Defendant IIHS by its agents, servants and employees

presented televised statements «n Defendant CBS's

_ program ‘‘Killer Wheels’ which televised statements

Defendant knew or in the exercise of due care should

have known had no valid factual basis. Said testimony

included but is not limited to:

A. Multi-piece rims explode ‘“‘like a shell out of a

cannon into whatever is in the way which is very

often a serviceman’s head.”’

B. That IIHS has reported deaths involving

multi-piece rim explosions “but we are reporting

what's known and we have every reason to believe

that what’s known is just the tip of the iceberg

because no data are collected on these.”

C. That the accidents involving multi-piece rim

explosions “often involve innocent bystanders.”

7a

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

18.

Defendant IIHS presented to Defendant CBS

anecdotal examples of multi-piece rim explosions for use

to malign the product per se when Defendant knew or in

the exercise of due care should have known that such

incidents involved misuse or improper servicing of the

said multi-piece rims.

19.

Defendant IIHS publicized through Defendant CBS in

the ‘Killer Wheels’ program, its conclusion that multi-

piece rims should not be available for sale when

Defendant IIHS knew from its own in-house engineer

that it had no sound technical basis to arrive at such

conclusion.

20.

Defendant IIHS represented to Defendant CBS thai

the multi-piece rim was more hazardous than the single

piece rim when Defendant IIHS had done no studies on

single piece rims and knew from information vrovided to

it by a qualified engineer that multi-piece rims are as

safe as single piece rims.

21.

The data which Defendant IIHS presented to

Defendant CBS was not collected scientifically but was

rather collected in an effort to achieve the pre-

determined result that multi-piece rims are unsafe.

8a

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

22.

Defendant IIHS knew that the material it provided to

Defendant CBS was false and misleading or in the

alternative presented the material to Defendant CBS in

reckless disregard of the truth.

23.

Defendants’ disparagement of Plaintiff's product as set

forth in this Complaint was done without privilege.

24.

Defendants’ disparagement of Plaintiff's product as set

forth in this Complaint was done for the purpose of

having multi-piece rims removed from the market.

25.

Defendants recognized or should have recognized that

their actions would result in pecuniary loss to Plaintiff

Redco Corporation by causing customer loss, loss of

sales, rise in insurance premiums, and an increase in

unfounded products liability law suits.

26.

As a result of Defendants’ conduct, Plaintiff has

suffered a loss in profits in excess of $10,000.00.

27.

As a result of Defendants’ conduct, Plaintiff's

insurance premiums were raised from $4.00 per $1,000.00

worth of coverage to $15.00 per $1,000.00 worth of

coverage despite the fact that Plaintiff has the best

safety record of all manufacturers of multi-piece rims.

9a

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

28.

Products liability law suits against Plaintiff tripled as

a result of the broadcast sensitizing Plaintiff to be the

target of unfounded products liability suits.

29.

As a result of Defendants’ conduct, Plaintiff has been

exposed to bias and prejudice of the public which forms

the jury pool in any products liability suit brought

against Plaintiff.

30.

The conduct of Defendants was outrageous and

Plaintiff is entitled to punitive damages.

WHEREFORE, Plaintiff Redco Corporation requests

vour Honorable Court to award compensatory damages

.n excess of $10,000.00 together with punitive damages,

interest and cost of suit.

COUNT II

DEFAMATION

31.

All preceding and succeeding paragraphs are hereby

incorporated by reference.

32.

During the above stated broadcasts of ‘Killer

Wheels’, and in preparation thereof, Defendants made

false and defamatory statements and _ innuendoes

concerning Redco Corporation, including but not limited

to:

10a

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

A. That Plaintiff makes a killer product.

B. That Plaintiff is unethical.

C. That Plaintiff is more interested in money

than in the lives of human beings.

D. That Plaintiff and other manufacturers

refused to participate in the program ‘‘Killer

Wheels.”’

E. That if Plaintiff Redco Corporation does not

recall all of its multi-piece rim product, it is

unethical.

33.

The defamatory statements made by Defendants were

exposed to millions of people in two unprivileged

broadcasts of the program ‘‘Killer Wheels.”’

34.

Defendants knew that the statements and innuendoes

were false and defamatory or in the alternative acted in

reckless disregard of the truth for the reasons stated in

Count I, supra.

35.

Defendants knew or should have known that said false

and defamatory statements would harm the reputation of

Plaintiff Redco Corporation by lowering it in the

estimation of the community and by detering customers

and other persons from associating or dealing with it,

causing a loss of customers, loss of sales, an increase in

insurance premiums, and other detrimental results.

lla

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

36.

As a result of Defendants’ false and defamatory

statements and innuendoes Plaintiff has suffered a loss

of reputation.

37.

As a result of Defendants’ conduct, Plaintiff has

suffered a loss in profits in excess of $10,000.00.

38.

As a result of Defendants’ conduct, Plaintiff's

insurance premiums were raised from $4.00 per $1,000.00

worth of coverage to $15.00 per $1,000.00 worth of

coverage despite the fact that Plaintiff has the best

safety record of all manufacturers of multi-piece rims.

39.

Products liability law suits against Plaintiff tripled as

a result of the broadcast sensitizing Plaintiff to be the

target of unfounded products liability suits.

40.

As a result of Defendants’ conduct, Plaintiff has been

exposed to bias and prejudice of the public which forms

the jury pool in any products liability suit brought

against Plaintiff.

a.

The conduct of Defendants was outrageous and

Plaintiff is entitled to punitive damages.

WHEREFORE, Plaintiff Redco Corporation requests

your Honorable Court to award compensatory damages

in excess of $10,000.00 together with punitive damages,

interest and costs of suit.

12a

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

COUNT III

INTENTIONAL INTERFERENCE WITH EXISTING

AND PROSPECTIVE BUSINESS RELATION

42

All preceding and succeeding paragraphs are hereby

incorporated by reference.

43.

Prior to March 8, 1981, Plaintiff had a business

relationship with American Universal Insurance

Company.

44.

Plaintiff's business relationship with American

Universal Insurance Company involved a contract of

products liability insurance whereby American Universal

insured Plaintiff for products liability of its product,

multi-piece rims.

45.

Prior to March 8, 1981, American Universal Insurance

Company provided products liability coverage to

Plaintiff at the rate of $4.00 per $1,000.00 of coverage.

46.

On March 8, 1981, Defendant CBS, Inc. after

solicitation by Defendant IIHS broadcast a program

titled ‘‘Killer Wheels’’ over nationwide television over the

CBS television network.

47.

Said program was rebroadcast on September 6, 1981.

13a

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

48.

After the publications of the misrepresentations

included in the said broadcast ‘Killer Wheels’ as set

forth hereinabove, Plaintiff's business relationship with

American Universal Insurance Company was altered

dramatically.

49.

After the above-mentioned broadcast of ‘‘Killer

Wheels’’, American Universal Insurance Company raised

its rate for products liability insurance for Plaintiff's

product from $4.00 per $1,000.00 worth of coverage to

$15.00 per $1,000.00 worth of coverage.

50.

Although Plaintiff sought products liability insurance

from other insurers, it was unable after Defendant CBS's

broadcast of “Killer Wheels” to procure insurance on

terms comparable to those it received prior to the

broadcast.

51.

In addition, prior to March 8, 1981, Plaintiff enjoyed

continuing business relationships with purchasers of its

multi-piece rim line.

52.

Further, Plaintiff's reputation as a manufacturer of

multi-piece rims prior to March 8, 1981, gave rise to a

reasonable likelihood and probability that additional

purchasers would consummate a business relationship

with Plaintiff, and prior customers would make

additional purchases of Plaintiff's product.

l4a

Appendix A—Plaintiff's Complaint with

Killer Wheels Transcript.

53.

After Defendant CBS's broadcasts of the program

“Killer Wheels” on March 8, 1981, and September 6,

1981, Plaintiff suffered serious impairment of its

business relationship with its existing and prospective

customers.

54.

The loss in Plaintiff's sales relationships included, inter

alia, ané@ is demonstrated by Plaintiff's gross sales

figures in its sales of multi-piece rims by comparing the

year preceding and the year of Defendant CBS's

broadcasts of ‘‘Killer Wheels” as follows:

A. In March of 1980 (1 year prior to the

broadcast) Plaintiff's sales of multi-piece rims were

in the amount of $358,694.74.

B. In April of 1980 Plaintiff's sales of multi-piece

rims rose 46% to the figure of $523,717.91.

A and 8B, supra, demonstrate the sales

relationships of Plaintiff with its customers prior to

the broadcast.

C. In March of 1981 (the month of the first

broadcast) Plaintiff's sales of multi-piece rims

amounted to $336,629.37.

D. In April of 1981 (the month following the

initial broadcast of “Killer Wheels’’) Plaintiff's sales

dropped 35% to a total of $217,759.70.

These figures demonstrate the loss of sales

relationships suffered by Plaintiff as a result of

Defendant's broadcast.

15a

Appendix A—Plaintiff's Complaint with

Killer Wheels Transcript.

56.

In September of 1980 (the year preceding Defendant

CBS's broadcast) Plaintiff's sales of multi-piece rims

totaled $380,096.51. In October of 1980 (again the year

before the broadcast) Plaintiff's sales of multi-piece rims

were up 19% to a total of $542,835.51.

56.

In September of 1981 (the month of the second

broadcast of ‘Killer Wheels’’) total sales of Plaintiff were

$484,511.44. In October of 1981 (the month following

Defendant CBS’s second broadcast) Plaintiff's sales were

down to $234,708.95.

57.

Defendant CBS knew or in the exercise of due care

should have known that the broadcast of its program

‘Killer Wheels’’ was substantially certain to result in

preventing the formation of business relationships by

Plaintiff in both saies and insurance and/or in damaging

the existing business relations of Plaintiff.

58.

Defendant IIHS solicited the publicity provided by the

program with the intent to damage the existing business

relations of Plaintiff and to prevent the formation of new

business relations by Plaintiff; in the alternative

Defendant ITHS knew that damage to Plaintiff's existing

and prospective business relationships was substantially

certain to result from the publicity solicited.

l6a

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

59.

Defendants’ interference with Plaintiff's business

relations as set forth was done without privilege.

60.

Defendant CBS's interference in Plaintiff's business

relations by its broadcast of ‘Killer Wheels’ was

improper in that:

A. The information provided by said broadcast

was based upon a lack of objective evidence.

B. The information provided by the _ said

broadcast was biased and collected in an effort to

achieve the pre-determined result of maligning

multi-piece rims.

C. Although the data purported to be scientific,

it, in fact, formed no technical basis for the

conclusions presented in the broadcast.

D. The broadcast included the presentation oi

film prepared by Defendant IIHS which film

involved the use of a severely altered multi-piece rim

for the sole purpose of making the rim explode.

E. Defendant’s broadcast by innuendo suggested

that multi-piece rims spontaneously ‘‘fall out of

place’’ when in fact this is not true of Plaintiff's

product.

F. The said broadcast suggested that accidents

involving multi-piece rims “often inVolve innocent

bystanders’’ when Defendant knew or in the exercise

of due care should have known that such was not

true of Plaintiff's product.

17a

Appendix A—Plaintiff's Complaint with

Killer Wheels Transcript.

G. Defendant’s broadcast ignored the data which

suggested that multi-piece rims are safe unless

improperly serviced.

H. Defendant in its broadcast used a letter from

Paul Hykes, a rim engineer which letter critiqued a

type of multi-piece rim when Hykes told Defendant

that he had recanted that opinion and had provided

to Defendant full data to backup his revised opinion

that multi-piece rims are safe.

I. Defendant extrapolated data regarding a

single model of multi-piece rims to suggest by

innuendo that all multi-piece rims, although

designed differently, had the same problems, when

Defendant knew or in the exercise of due care should

have known that such was not true of Plaintiff's

product.

J. Defendant in its broadcast used innuendo,

overstatement, distorted analogy, and unwarranted

assumption to malign Plaintiff's product and to

interfere with Plaintiff's contractual relationships

with its insurers and its existing and prospective

customers.

K. Defendant by innuendo suggested that the

multi-piece rim was more hazardous than the single

piece rim when Defendant had done no studies on

single piece rims and knew from information

provided to it by a qualified engineer that multi-

piece rims are as safe as single piece rims.

L. Defendant by innuendo labeled _ the

manufacturers of multi-piece rims, including

Plaintiff, unethical.

18a

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

61.

Defendant IIHS likewise has intentionally and

improperly interferred with Plaintiff's existing and

prospective contractual relations, as follows:

A. With the express purpose of removing multi-

piece rims from availability on the market, IIHS

solicited publicity presented by Defendant CBS in

its broadcast ‘‘Killer Wheels’’.

B. Defendant IIHS provided much of the unfair,

slanted, improper information used by Defendant

CBS in its program, including, inter alia, Defendant

IIHS prepared the film used on the presentation

‘Killer Wheels’ which purported to show the

hazards of explosion of multi-piece rims when

Defendant IIHS knew that such explosions could

only be achieved by altering the product severely

from its originally manufactured form in a fashion

which does not occur under normal use.

C. Defendant IIHS by its agents, servants and

employees presented testimony on Defendant CBS’s

program ‘Killer Wheels’’ which testimony

Defendant knew or in the exercise of due care should

have known had no factual basis.

D. Said testimony of Defendant IIHS included

but is not limited to, the following:

(1) that multi-piece rims explode ‘‘like a shell out

of a cannon into whatever is in the way which is

very often a serviceman’s head;

19a

Appendix A—Plaintiff's Complaint with

Killer Wheels Transcript.

(2) that IIHS has reported deaths involving

multi-piece rim explosions, “but we are reporting

what’s known, and we have every reasov: to believe

that what's known is just the tip of the iceberg

because no data are collected on these;

(3) that the accidents involving multi-piece rim

explosions ‘‘often involve innocent bystanders.”

E. Defendant IIHS presented to Defendant CBS

anecdotal examples of multi-piece rim explosions for

use to malign the product per se when Defendants

knew or in the exercise of due care should have

known that such incidents involved misuse or

improper servicing of the said multi-piece rims.

F. Defendant IIHS publicized through Defendant

CBS in the “Killer Wheels’ program, its conclusion

that multi-piece rims should not be available for sale

when Defendant IIHS knew from its own in-house

engineer that it had no sound technical basis to

arrive at such conclusion.

G. Defendant by innuendo suggested that the

multi-piece rim was more hazardous than the single

piece rim, when Defendant had done rv studies on

single piece rims and knew frem_ information

provided to it by a qualified engineer that multi-

piece rims are as safe as single piece rims.

H. Defendant by innuendo labelled the

manufacturers of multi-piece rims, including

Plaintiff, unethical.

20a

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

62.

As a result of Defendants’ interference with Plaintiff’s

contractual relationships both existing and prospective,

Plaintiff has suffered pecuniary damages in excess of

$10,000.00.

63.

In addition Plaintiff has suffered damage to its

reputation.

64.

_ The conduct of Defendant has exposed Plaintiff to

unfounded products liability lawsuits.

65.

Defendant's conduct has further exposed Plaintiff to

bias and prejudice in the public which forms the jury

pool in any products liability suit brought against

Plaintiff.

66.

The conduct of Defendants was outrageous and

Plaintiff is entitled to punitive damages.

WHEREFORE, Plaintiff Redco Corporation requests

your Honorable Court to award compensatory damages

in excess of $10,000.00, together with punitive damages,

interest and the costs of suit.

2la

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

COUNT IV

CONSPIRACY

67.

All preceding and succeeding paragraphs are hereby

incorporated by reference.

68.

Defendants IIHS and CBS by their agents, servants

and employees, with the intent to injure Plaintiff

colluded, agreed and conspired to prepare, edit and

broadcast the program ‘Killer Wheels” in an unlawful

fashion.

69.

Defendants CBS and IIHS agreed to present the

broadcast ‘‘Killer Wheels’’ for the object of effecting the

unavailability of multi-piece rims in the American

market.

70.

Defendants by their agents, servants and employees

met on more than one occasion for the purposes of

discussing the preparation of this biased and unfair

program.

<a>

Defendant IIHS provided to Defendant CBS the unfair

demonstration film which was used in the broadcast of

‘Killer Wheels.”’

22a

Appendix A—Plaintiff's Complaint with

Killer Wheels Transcript.

72.

As a result of Defendants’ conduct, Plaintiff has

suffered a loss of reputation.

73.

As a result of Defendants’ conduct, Plaintiff has

suffered a loss in profits in excess of $10,000.00.

74.

As a result of Defendants’ conduct, Plaintiff's

insurance premiums were raised from $4.00 per $1,000.00

worth of coverage to $15.00 per $1,000.00 worth of

coverage despite the fact that Plaintiff has the best

safety record of all manufacturers of multi-piece rims.

75.

Products liability law suits ageinst Plaintiff tripled as

a result of the broadcast sensitizing Plaintiff to be the

target of unfounded products liability suits.

76.

As a result of Defendants’ conduct, Plaintiff has been

exposed to bias and prejudice of the public which forms

the jury pool in any products liability suit brought

against Plaintiff.

#0.

The conduct of Defendants was outrageous and

Plaintiff is entitled to punitive damages.

23a

Appendix A—Plaintiff's Complaint with

Killer Wheels Transcript.

WHEREFORE, Plaintiff Redco Corporation requests

your Honorable Court to award compensatory damages

in excess of $10,000.00 together with punitive damages,

interest and costs of suit.

Respectfully submitted,

LAUCKS & MONROE

By:

Donald L. Reihart

By:

Lillian M. Morgan

By:

Sharon E. Myers

24a

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

COMMONWEALTH OF PENNSYLVANIA Ss

COUNTY OF YORK ,

Before me, the undersigned officer, personally

appeared J. B. SECHRIST, who acknowledged himself to

be the Vice President of Redco Corporation, and he is

authorized to make this Affidavit on its behalf and that

the facts contained in the foregoing Complaint are true

and correct to the best of his information, knowledge and

belief.

is) J. B. SECHRIST

J. B. Sechrist

Sworn and subscribed to before me

this 3rd day of March, 1982.

Susan M. Anderson, Notary Public

York, York County, Pa.

My Commission Expires March 19, 1985.

25a

Appendix A—Plaintiff's Complaint with

Killer Wheels Transcript.

60 MINUTES

Volume XIII, Number 25

as broadcast over the

CBS TELEVISION NETWORK

Sunday, March 8, 1981

7:00 - 8:00 PM, EST

With CBS News Correspondents

Mike Wallace, Morley Safer, Dan Rather

and Harry Reasoner

“KILLER WHEELS” — Produced by

Allan Maraynes

“ROBERTA GOES TO CHINA” — Produced by

Igor Oganesoff

“CRIB DEATH” — Produced by

Jim Jackson

PRODUCED BY CBS NEWS

Copywright—MCMLX XXI CBS Inc.

ALL RIGHTS RESERVED

26a

Appendix A—Plaintiff's Complaint with

Killer Wheels Transcript.

MIKE WALLACE: This test film by the Insurance

Institute for Highway Safety was made with a 250-

pound dummy, but it shows graphically what can happen

when a wheel rim explodes. (Sound of explosion) Unlike

the tire on your automobile, which rests on a single-piece

rim like this one, the tires on most of the trucks and

buses on the road rest on a rim made of two or three

pieces, like this one.

GARY GARDNER (lawyer): These things will kill you,

if you don’t have the required knowledge to assemble

them.

(Roberta Peters singing)

DAN RATHER: During the years of the Cultural

Revolution, the Chinese became closet musicians,

teachers and opera singers, trying hard to preserve what

they knew and remembered of Western opera.

ROBERTA PETERS: They have a hunger for Western

music. I mean, they are starved to hear Western music.

(Roberta Peters singing ‘““The Sound of Music’’)

HARRY REASONER: Derek Mahr was born on

October 10th, 1980, in New York, a normal baby,

healthy, large for his age. One night when the baby was

six weeks old, his mother went to the crib to wake him

after a four-hour nap. She found that the baby had died

in the crib during those four hours.

Mititemseiie os

cia

Appendix A—Plaintifj’s Complaint with

Killer Wheels Transcript.

At Massachusetts General Hospital in Boston, efforts

are being made to single out the high-risk babies. If the

tests show a high risk, the parents are brought into the

hospital, and usually a home-monitoring system is

advised.

(Electronic sound)

WALLACE: I’m Mike Wallace.

MORLEY SAFER: I'm Morley Safer.

RATHER: I’m Dan Rather.

REASONER: I'm Harry Reasoner. Those stories and

more tonight on 60 MINUTES.

(Announcements)

“KILLER WHEELS”

MIKE WALLACE: Killer wheels—that’s what many

truck drivers and tire mechanics are calling some wheel

rims now riding on our highways. The wheel rim is that

steel part on which a tire is mounted. But we're talking

here not about the wheel rims on cars; instead, we're

dealing only with the wheel rims on trucks and buses

and some campers. They are called multi-piece wheel

rims, and accidents involving them, according to U.S.

government statistics, have killed more people than have

died in accidents involving the Ford Pinto or the

Firestone 500 tire.

So, it’s no surprise that there has been a call to ban

these wheel rims from the highways. That is part of our

report. But this is also a story about the companies that

28a

Appendix A—Plaintiff's Complaint with

Killer Wheels Transcript.

make these wheels, about decisions made by large

corporations in weighing the costs and the benefits of

selling potentially dangerous products. And in case

you're wondering what an accident involving a truck rim

is like, take a look at this.

(Natural sound from simulated car crash)

This test film by the Insurance Institute for Highway

Safety was made with a 250-pound dummy, but it shows

graphically what can happen when a wheel rim explodes.

(Sound of explosion)

Ben Kelley of the Insurance Institute explains how the

accidents happen.

BEN KELLEY: Its design causes a piece of metal,

weighing anywhere from 10 to 30 pounds, to be held on

the outside of a tire tnat is under tremendous air

pressure. And if that metal, for any reason, dislodges, it

fires off like a shell out of a cannon into whatever is in

the way, which is very often a serviceman’s head.

WALLACE: Now that means that, unlike the tire on

your automobile, which rests on a single-piece rim like

this one, the tires on most of the trucks and buses on the

road rest on a rim made of two or three pieces, like this

one. One piece interlocks with the other. And when the

tube in the tire is inflated, tension is built up between

the two pieces. It’s when those two pieces fail out of

place that the pressure can cause them to separate, to

explode.

Just last year, at this service station in Clayton,

Georgia, three young men stopped to put air in a truck

tire. Lloyd James, Sr., the father of one of them, told us

what happened next.

29a

Appendix A—Plaintiff's Complaint with

Killer Wheels Transcript.

LLOYD JAMES, SR.: The next thing I knew, I have a

telephone call at home, said there was a bad accident

here at the station. And we found out that the tire and

wheel had exploded and hit my son in the face and the

nose part. It separated his head here.

WALLACE: His son, 23-year-old Spud James, had been

married just two months when he suffered permanent

brain damage after a chunk of steel from a multi-piece

rim exploded into his head. He can no longer speak and

he is paralyzed on one side of his body.

It was difficult for us to imagine the kind of force behind

an exploding wheel rim, but this film, produced by

Goodyear, one of the manufacturers of multi-piece rims,

tells the tale.

NARRATOR (Goodyear film): The sheer power

generated by an exploding tire-and-rim assembly is

almost unbelieveble. Did you know that a tire, inflated to

75 PSI, has the pewer in an explosive situation to hurl a

16-pound bowling “«}! a full half-mile? This is enough

force to raise a 3,000-pound car 15 feet off the ground.

WALLACE: Goodyear made this training film to point

up what can happen if multi-piece rims are not handled

correctly.

NARRATOR (Goodyear film): Loosening any of the

components before complete deflation may cause the

assembly to come apart with explosive force, like a

bomb. (Sound of explosion) And you see what can result

from that.

30a

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

WALLACE: Goodyear and the other manufacturers

recognize the hazards connected with multi-piece rims

during deflation or inflation of the tire; but they say

accidents occur only when proper servicing procedures

aren't followed, and they say accidents involving the rim

are extremely rare. But Ben Kelley says that’s not so,

and he has so far reported to the federal government

more than a hundred deaths and at least 400 injuries

involving multi-piece rim explosions.

KELLEY: But we are reporting what’s known, and we

have every reason to believe that what’s known is just

the tip of the iceberg, because no data are collected on

these.

WALLACE: And, says Kelley, the accidents often

involve innocent bystanders. This test film shows what

might happen when an unknowing vacationer tries to put

air in the tire on his camper.

(Sound of explosion)

KELLEY: We know of the—what we call the “innocent

bystander’”’ accident—somebody walking by a service

shop or walking by a parked truck and having one of

these go. And we know of these so-called freak

accidents—which aren’t so freak, i: turns out—in which

the rim flew off and went into somebody’s car

and—and—and demolished the people inside.

Now, the—the irony is that there is a—an identical

design in which all of the metal is combined—the single-

piece wheel, in which it’s all in one piece. There’s nothing

separate from the wheel.

WALLACE: Right.

Arietta 95

3la

Appendix A—Plaintiff'’s Complaint with

Killer Wheels Transcript.

KELLEY: And that can be used for almost every size

of truck that operates over the road today.

WALLACE: Why, then, don’t truck drivers prefer the

single-piece to the multi-piece rim? Some say it’s because

it is much more difficult to mount and service the single-

piece, and it is for that reason, say the manufacturers,

that its entry onto the market has been slow. But back

to multi-piece rims.

The tire makers insist that if multi-piece rims are

inflated in a safety cage like this one, accidents will be

prevented. But it turns out that a good number of

accidents occur after the tire is inflated and out of the

cage. That is how Mary Ehmann’s son, Eric, was killed

after his boss told him to repair a truck tire.

MARY EHMANN: He inflated it, took it out of the

cage, rolled it across the floor to lay it down beside the

truck, and when he laid it down, the impact (slaps

hands) of hitting the floor—apparently something

wasn't quite right, or maybe there was a piece of rust or

something there—

WALLACE: Hm-mmm.

EHMANN: —it released the rim. And, of course, he

was leaning over it. So the rim blew, just like a missile,

and went through the top of his head and removed the

frontal part of his skull. As people were coming to

console us, they would say, “Oh, I remember that

happened to So-and-So. I know somebody that—a child

lost an arm or lost an eye.’’ A man that worked over in

my husband’s office said a man in their town was

decapitated by it. And before long, I had 10 to 15 people

say they knew of this happening, and then I thought this

is not the freak thing I thought it was.

32a

Appendix A—Plaintiff's Complaint with

Killer Wheels Transcript.

WALLACE: It never crossed your mind to sue the

garage owner or to sue Firestone or Goodyear people?

EHMANN: I did a lot of praying on it, of which way

should I go. And remembering Eric the way he was—he

was not vindictive, either—and I don’t think he would

have wanted me to.

WALLACE: But someone who did sue was this man,

Clifford Griggs. He was hit in the face with a multi-piece

rim and now suffers from traumatic epilepsy. His face

was reconstructed with plastic surgery. The wheel on his

truck exploded because parts from one rim were a

mismatch with parts from another. And his lawyer, Gary

Gardner, held Firestone, the manufacturer, responsible.

GARY GARDNER: They could very easily have

stamped a warning on these pieces. Just say, ‘“‘Do not

handle. Danger.’’ You know, “These things will kill you

if you don’t have the required knowledge to assemble

them.” Their obvious defense was. as they have tried to

defend in all the cases, that wuen you stamp those

things on the rim, you create stress points. And our

engineer said that’s poppycock. They didn’t have any

trouble stamping their name on it.

WALLACE: A jury awarded Clifford Griggs more

than a quarter-million dollars, after Gardner contended

that Firestone, the manufacturer of the rim, had a duty

to print a warning on each rim telling users about the

risks involved in assembling them. It’s interesting to

note that after the Griggs’ decision, Firestone did

consider putting warning labels on multi-piece rims. One

internal memo says: ‘‘As interpreted by the government

and the courts, we do have a duty to warn.’’ And goes on

33a

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

to say, ‘“We would not want to use the word ‘kill’, as this

would have a negative reaction from our customers.”

Firestone and Goodyear even went so far as to write

sample warnings, but they didn’t use them.

GARDNER: If they put a warning on now—they know

that they have got millions of these rims out in the

pub—public’s hand right now—they are either going to

have to recall those immediately, which will cost them a

substantial sum of money, and they know it, or the

lawyers are going to be able to show that now you put

the warning on the new ones, why didn’t you recall the

old ones? Why didn’t you get on television and tell the

public, don’t handle these rims unless you’re trained to

do so? Because that would cost them money, that’s why

they won't do it.

WALLACE: There are four major manufacturers of

multi-piece rims: Firestone, Goodyear, the Budd

Company, and the Kelsey-Hayes Corporation. We asked

them to respond to our questions for this broadcast, but

for various reasons, including their involvement in

numerous lawsuits over multi-piece-rim accidents, they

declined.

Firestone, however, did tell us that accidents involving

multi-piece rims are so rare that they don’t merit this

kind of attention.

As we mentioned earlier, the manufacturers insist the

multi-piece rim is no more hazardous than the single-

piece. Still, NHTSA, the National Highway Traffic

Safety Administration, is now considering a proposal

that they be banned from the highways. And there are

some multi-piece rims considered so hazardous by the

34a

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

government that NHTSA has asked the manufacturers

voluntarily to recall them, but they have refused. One

such rim is the RH5-degree rim made by Firestone, the

Budd Company, and Kelsey-Hayes. It is no longer in

production, but there are millions of them still on the

road. One former executive did agree to talk to us about

the RH5 that his company made. Jack Bradley, former

head of the Wheel Engineering Division of the Budd

Company.

Mr. Bradley, are multi-piece rims dangerous?

JACK BRADLEY: Not—absolutely not.

WALLACE: Not dangerous?

BRADLEY: They are not dangerous.

WALLACE: No more dangerous than the so-called

single-piece rim?

BRADLEY: Not at all. The single-piece rim and—and

the—and the multi-piece rims are both safe rims. And

the incidence of problems with one or the other is not

significantly different. But to my knowledge, it’s always

been a case of—of poor maintenance or the—the people

got careless.

WALLACE: So, the Budd people were, by and large,

pretty satisfied that the multi-piece rim, particularly the

RH5, was a safe product?

BRADLEY: Yes.

WALLACE: I then read Bradley a letter from Budd’s

former chief engineer, a man named Paul Hykes, who

wrote about the RH5 after he left the Budd Company.

aA ici EAE S08 ie i ch

35a

Appendix A—Plaintiff's Complaint with

Killer Wheels Transcript.

He says in a letter: ‘It is more subject to dangerous

wear than other designs. The only time that this

dangerous wear can be detected is when the rim is

dismantled.”’ He says: ‘““‘The RH5 can be’ put together

improperly and subsequently blown apart when new.

From the foregoing, you can readily understand why I

ask the question, ‘Why has this rim not been removed

from the market?’’’ Now this was your boss back in

1969, Paul Hykes, chief engineer of the Budd Company,

suggesting the rim should be taken off the market.

BRADLEY: Then as—as close as I was to Paul, I never

realized that he had these feelings about the RH5-degree

rim.

WALLACE: You didn’t know that he and others had

those feelings about the RH5 rim?

BRADLEY: I haven’t—I’ve—I—I—I—I knew—I-I’m—I

swear that I did not know while Paul was at the Budd

Company that he objected to the RH5-degree rim.

WALLACE: But if Bradley didn’t know about Hykes’

feelings while the former chief engineer was with the

company, nonetheless Bradley did consider the effects of

such criticism. I read back to him a memo he himself had

written about the Hykes letter.

(Reading memo): “I’m certain we will be asked in the

near future to comment on Mr. Hykes’ letter. Any

publicity along chis line could be very detrimental to the

Budd image, particularly with the interest that the

Department of Transportation has on safety at this

time.”’

BRADLEY: What—what did I say? I said I didn’t

want a lot of publicity. Naturally. Who would?

36a

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

WALLACE: Bradley still insisted the multi-piece rim

was no more hazardous than the single-piece rim. But we

had learned of an industry memorandum that said

Bradley might have been pressured into changing his

presentation at Department of Transportation hearings

back in 1970, a presentation that would have shown that

some multi-piece rims could not pass certain safety tests,

and that the industry might be better off moving to the

single-piece rim.

(Bradley laughs softly)

You smile, but isn’t it a fact that what you were going to

say at those Department of Transportation hearings was

that multi-piece rims would not pass the sudden-

deflation test at 60 miles per hour and that the industry

should go to the single-piece rim?

BRADLEY: Yes, I had planned that.

WALLACE: Why?

BRADLEY: I—I—I-—I said that I—I had—I showed my

presentation to one of our very good customers, and—

WALLACE: Who?

BRADLEY: (Laughs) It was the Ford Motor Company.

WALLACE: Yes?

BRADLEY: And they suggested that I—that—and

they only suggestxi, they didn’t tell me, they just

suggested if I took out two of the slides, my presentation

would not be basically changed and it would make it—it

wouldn’t—it wouldn’t be quite as damaging to the—to

the industry. Not—not because the single-piece is

basically safer than the multi-piece.

WALLACE: Then why?

37a

Appendix A—Plaintiff’s Complaint with

Killer Wheels Transcript.

BRADLEY: Because we—it was one way of—of taking

some of the pressure of off us from—from—from the

government. And—and from our standpoint—

WALLACE: What kind of pressure? Why was the—

BRADLEY: All—all of the things you’re saying there.

WALLACE: That the RH5 or the multi-piece was less

safe than the single-piece?

BRADLEY: That’s what they were saying.

WALLACE: It turns out that these were not the only

doubts the industry was having about multi-piece rims.

There is this report written by two engineers at

Goodyear’s Motor Wheel Division: “The parts are

inherently dangerous, both on the highway and in the

shop.” It says: ““When in use, the dangerous condition is

often masked.’’ And it goes on: ‘‘Any positive action to

get parts out of use will probably result in more liability

suits and higher damage awards. But at the same time,

it should reduce the number of accidents.”

But the question remains: If multi-piece wheel rims are

so dangerous, why hasn’t the U.S. government ordered

them off the road? Well, it turns out that the

government’s hands may be tied, for although the

government is looking into a ruling that would ban

future production of all multi-piece rims, the federal

statute of liritations forbids the mandatory recall of

most of the RH5 wheel rims, because they were

manufactured so long ago.

Therefore, the responsibility would seem to fall upon the

manufacturers.

JOAN CLAYBROOK: Absolutely.

38a

Appendix A—Plaintiff's Complaint with

Killer Wheels Transcript.

WALLACE: Joan Claybrook, former head of the

National Highway Traffic Safety Administration.

CLAYBROOK: It falls upon the manufacturers. And

you haven't asked me if I were the manufacturer would I

recall this, and I think that the answer is that it’s the

only ethical thing for the manufacturer to do.

WALLACE: Why do you think they refused?

CLAYBROOK: If they were to anow—acknowledge a

defect by recalling this wheel, then that would be used

against them in those product-liability cases. And it is,

in most cases such as this, a financial decision by the

manufacturer.

WALLACE: So, it comes down to money versus human

life?

CLAYBROOK: There’s no question about that. It

comes down to that in the manufacture of cars today.

Cars are not manufactured as safely as they can be, and

the answer is money. That is the reason why not, and

even though it’s pennies in many cases.

WALLACE: Do you think it would be a good idea now

to recall, for instance, the RH5’s that are still on the

road?

BRADLEY: I-—TI see—I really don't see any—any point

in recalling those versus any other, like—as I pointed out

before. They were the safest part we ever made, on—on a

statistical basis.

WALLACE: And the accidents that have happened,

you simply have to buy as part of the—part of the

bargain, in a—in a sense?

BRADLEY: This is the way life is.

(Announcements) —

39a

APPENDIX B

Request for Findings of Fact

IN THE

UNITED STATES DISTRICT COURT

For the Middle District of Pennsylvania

- REDCO CORPORATION,

Plaintiff

V.

CBS, INC. and THE INSURANCE INSTITUTE

FOR HIGHWAY SAFETY,

Defendants.

Civil Action No. 82-0263.

Jury Trial Demanded.

PROPOSED FINDINGS OF FACT

AND CONCLUSIONS OF LAW

Redco Corporation moves your Honorable Court to

find the following facts and conclusions of law to be

applicable in the above case:

3.

On March 8, 1981 and September 6, 1981, CBS

broadcast a program segment on its 60 Minutes show

titled ‘Killer Wheels”’.

2.

“Killer Wheels” referred to multi-piece rims and was of

and concerning Redco Corporation.

a

40a

Appendix B—Request for Findings of Fact.

3.

The 60 Minutes show is a news program produced by

CBS news.

4.

At the beginning of the show a human being is shown

walking to a tire and bending over it.

5.

The tire explodes violently, projecting a human like

figure dressed like a man into the air.

6.

The display leads the average viewer to believe this is

what happens in reality.

a

A visual display of a multi-piece rim is followed by a

voice that says ‘These things will kill you”’.

8.

A man then is displayed on the screen who finishes the

preceding sentence by saying ... if you don’t have the

required knowledge to assemble them. (This man is not

identified to the viewer.)

9.

The opening sequence of the show states as a fact that

multi-piece rims “kill”’.

10.

The program suggests that all multi-piece rims kill

people.

4la

Appendix B—Request for Findings of Fact.

11.

The program suggests the killing is caused by a

defective design.

12.

All multi-piece rims are displayed by the program as

being inherently, unpredictably and frequently lethal in

design and use.

13.

The program implies that all single piece rims are safer

than all multi-piece rims.

14.

No Redco rim consisting of its unique reverse 9° rim

and base assembly ever killed anyone and single piece

rims are not safer than multi-piece rims.

15.

The program suggests, as a matter of fact, that the

manufacturers of multi-piece rims, including Redco,

could reduce or eliminate the hazards of multi-piece rims,

but refuse to do so because thev:

(a) fear loss of business;

(b) fear that any concession would open the way for

lawsuits;

(c) do not care about human suffering caused by their

product.

16.

The program suggests that the manufacturers are not

simply mistaken but they knowingly, callously and in

their own self interest misrepresented the facts about

devastating injury.

42a

Appendix B—Request for Findings of Fact.

17.

The program demonstrates the culpability of all

manufacturers in the face of alleged factual lethality of

all multi-piece rims.

18.

The program is developed with an audio visual style

that implies the mobility, knowledge and objectivity of

CBS.

19.

The program ‘Killer Wheels’ does not present multi-

piece rims as matters of debate or opinion, but rather

presents as matters of fact the lethality of multi-piece

rims and the culpability of the manufacturers.

20.

The program “Killer Wheels” is composed of evicit

emotional responses of fear of multi-piece wheels, pity

for victims and anger towara the manufacturers.

21.

The program “Killer Wheels” works as rhetorical proof

that casts the show as a drama involving innocent

victims, friendly witnesses, an indignant but objective

reporting (backed up by the resources of network

information gatherers and a_ heartless industry

representative with something to kill.

22.

The dramatic structure of the show works to make

Bradley an industry spokesman as unsympathetic and

unbelievable.

43a

Appendix B—Request for Findings of Fact.

23.

Cutaways are used in the ‘Killer Wheels’ show to

make Jack Bradley appear as a fool or a liar by implying

that he was answering one question when he in fact was

answering another.

24.

The ‘Killer Wheels’ program by implication,

communicates the following messages:

(a) that all multi-piece rims kill people;

(b) that all multi-piece rims are_ inherently,

unpredictably and frequently lethal in design and use;

(c) that single piece rims are a known safe alternative;

(d) that the manufacturers of rims know this to be the

case;

(e) that the manufacturers could diminish or eliminate

the hazards of multi-piece rims but refuse to do so

because (1) they fear the loss of business, (2) they fear

that any concession (as through hazard warnings) would

open the way for lawsuits against them, (3) they

fundamentally do not care about the human suffering

caused or potentially caused by their product; and

(f) the manufacturers are not simply mistaken, but

that they knowingly, callously and in their own self

interest misrepresented the facts about devastating

injury.

44a

Appendix B—Request for Findings of Fact.

25.

The ‘Killer Wheels”’ program is produced as a drama

involving innocent victims, friendly witnesses, indignant

but objective reporting of a heartless industry with

something to hide. The entire focus has nothing to do

with weighing the merits of multi-piece rims, but rather

is about the culpability of all manufacturers in light of

the lethality of all multi-piece rims.

26.

The program states that the manufacturers of multi-

piece rims, including Redco, know that single piece

wheels are safer than multi-piece wheels.

CONCLUSIONS OF LAW

1.

The program ‘Killer Wheels’ is capable of being

understood by the average viewer as defamatory.

In the Alternative

ae

A jury must decide the question of whether or not the

program ‘Killer Wheels” is a defamatory broadcast.

Respectfully submitted,

LAUCKS & MONROE

By: DONALD L. REIHART

Donald L. Reihart

29 North Duke Street

York, Pennsylvania 17401

Tel: (717) 848-4900

ne ee OE ee ee, ~~ eo

45a

Appendix B—Request for Findings of Fact.

CERTIFICATE OF SERVICE

I, Donald L. Reihart, Esquire, of the law firm of

Laucks & Monroe, do hereby certify that service of the

within document was made upon the following by

depositing a true and correct copy of the same in the

U.S. Mail, postage prepaid, addressed to the following:

Jerome J. Shestack, Esquire

Carl A. Solano, Esquire

Schnader, Harrison, Segal & Lewis

Suite 3600, 1600 Market Street

Philadelphia, Pennsylvania 19103

Attorneys for Defendant, CBS Inc.

G. Thomas Miller, Esquire

McNees, Wallace & Nurick

P.O. Box 1166

Harrisburg, Pennsylvania 17108

Attorney for Defendant, CBS Inc.

James K. Thomas, II, Esquire

212 Locust Street

P.O. Box 999

Harrisburg, Pennsylvania 17108

Attorney for the Defendant, Insurance

Institute for Highway Safety

LAUCKS & MONROE

By DONALD L. REIHART

Donald L. Reihart, Esquire

Dated: April 27, 1984.

46a

APPENDIX C

Affidavit of Dr. Thomas W. Benson

IN THE

UNITED STATES DISTRICT COURT

For the Middle District of Pennsylvania

REDCO CORPORATION,

Plaintiff

Ws

CBS, INC. and THE INSURANCE

INSTITUTE FOR HIGHWAY SAFETY,

Defendants.

Civil Action No. 82-0263.

AFFIDAVIT

Thomas W. Benson, being duly sworn according to

law, deposes and says:

My name is Thomas W. Benson. I have been a

Professor of Speech Communication employed at the

Pennsylvania State University since 1971 and a full

professor since 1975. I have been teaching and writing

about human communications since 1963 specifically in

the analysis of human communication through speech,

film, television and other media.

My area of academic discipline and research concerns

communication studies and includes quantitative and

qualitative analysis of communications. It also included

public opinion analysis and response thereto.

” Se

47e

Appendix C—Affidavit of Dr. Thomas W. Benson.

I am the editor and author of numerous books and

articles about communication. | was awarded the Robert

Kibler Memorial Award of the Speech Communication

Association in 1983 as a pioneer in the rhetoric of film

and television. See attached news release.

I have viewed the Killer Wheels broadcast by CBS,

Inc. on March 8, 1981 and make the following affidavit

concerning the communication portrayed in the program.

The average viewer understood as a person of

reasonable intelligence and good will is induced by the

Killer Wheels show to conclude:

1. That all multi-piece rims kill people;

2. That all multi-piece rims are inherently,

| unpredictably and frequently lethal in design and

| use;

3. That single piece rims are a known safe

alternative;

4. That the manufacturers of rims know this to be

the case;

5. That the manufacturers could diminish or

eliminate the hazards of multi-piece rims but refuse

to do so because (a) they fear the loss of business,

(b) they fear that any concession (as through hazard

warnings would open the way for lawsuits against

them and (c) they fundamentally do not care about

the human suffering caused or potentially caused by

their product; and

6. The manufacturers are not simply mistaken;

but that they knowingly, callously and in their own

self interest misrepresented the facts about

devastating injury.

All of these matters are presented by the show as

matters of fact (although some of them are repeated

within the show as independently supported by

48a

Appendix C—Affidavit of Dr. Thomas W. Benson.

opinions). That is, they are reported as facts and as

supported by facts and in addition, these ‘‘facts’’ are

independently corroborated by opinions. They are not

partly facts and partly opinions and, therefore, really

just opinions. They are presented as facts.

Even the callousness of the industry is presented as a

fact as when Mike Wallace asks at the end of the

segment whether the industry is trading profits for lives.

The respondent answers, ‘‘This is the way life is.’’ The

question and its answer are alleged by the show as a

fact, and as representing a fact. Of course, without

looking at the unedited footage, it is impossible to

determine the accuracy of CBS’ reported fact. . :

Furthermore, it is my opinion that although these

matters are presented as matters of fact partly through

the invocation of CBS and its 60 Minute stars as

reporters of facts and partly through the use of

constructive film editing, camera, and sound techniques,

the medium of television itself is not inherently incapable

of distinguishing between facts and opinions or

arguments. Rather, CBS chose in this instance to present

its Killer Wheels report as a statement of facts and a

reasonable average viewer would, in my judgment,

regard it as such.

THOMAS W. BENSON

THOMAS W. BENSON

Professor of Speech Communication

Sworn and subscribed to before me

this 29th day of February, 1984.

Constance M. Wheeler

Notary Public

University Park, Centre County, Pa.

My Commission Expires July 22, 1985.

Bb 6 ie Ontenid. w

49a

Appendix C—Affidavit of Dr. Thomas W. Benson.

RELEASE

DATE: 30 NOVEMBER 1983

FROM: Dept. of Speech Communication, The

Pennsylvania State Univ., 207 Sparks

Building, University Park, PA 16802 (856-

3461)

TO: All Media

At its annual convention in Washington, D.C., the

Speech Communication Association presented the Robert

Kibler Memorial Award to Thomas W. Benson, Professor

of Speech Communication at the Pennsylvania State

University.

The award cited Professor Benson for ‘dedication to

excellence, commitment to the profession, concern for

others, vision of what could be, acceptance of diversity,

and forthrightness.’’ In a speech of presentation at the

award ceremony, Professor Emeritus Waldo Braden of

Louisiana State University, speaking on behalf of the

Association, said:

“For nearly twenty years, Thomas Benson has pioneered

in the study of the rhetoric of nonverbal communication,

television, and film. As a teacher and scholarly writer, he

has educated students and peers concerning the

rhetorical forces embedded in audio-visual images and in

the fine arts generally. In the spirit of the late Robert J.

Kibler, Benson dares to probe previously uncharted

features of human communication while generously

refining and forwarding the research of fellow scholars as

50a

Appendix C—Affidavit of Dr. Thomas W. Benson.

editor, writer, and film maker. Mysteries are challenges

to his understanding and goads to his research. To the

unraveling of such mysteries he brings a blend of

rhetorical knowledge, artistic principles, familiarity with

history, and originality of thought and expression.”’

Professor Benson came to Penn State University in 1971

after graduating from Hamilton College, earning the

M.A. and Ph.D. from Cornell University, and teaching at

the State University of New York at Buffalo and

University of California, Berkeley. He edited the journal

Communication Quarterly, has served.two terms on the

editorial board of The Quarterly Journal of Speech, and

has written extensively on the rhetoric, art, and politics

of speech, film, television, and nonverbal communication.

5la

APPENDIX D

Affidavit of Dr. Thomas Benson

AFFIDAVIT

COMMONWEALTH OF PENNSYLVANIA al

COUNTY OF CENTRE

Before me, the undersigned officer, personally

appeared THOMAS BENSON, who, being duly sworn

according to law, deposes and says according to his

personal knowledge that the following facts and opinions

are true and correct to the best of his knowledge and

belief:

I graduated from Hamilton College in 1958 and earned

a BA Degree. In 1961 I graduated from Cornell

University with an MA Degree and was awarded a PhD

in speech and drama in 1966. I have taught at the State

University of New York at Buffalo; at the University of

California at Berkeley and am presently a professor of

Speech Communication at the Pennsylvania State

University at State College, Pennsylvania.

I have edited the journal ‘‘Communication Quarterly”

and served two times on the editorial board of the

Quarterly Journal of Speech. I have written extensively

on the rhetoric, art and politics of speech, film, television

and non-verbal communication. I have studied and

taught the rhetoric of non-verbal communication,

television and film communication for over twenty years.

In addition, I have conducted research in the field of

communication with a view of obtaining an

understanding of communication by non-verbal, verbal,

visual and auditory means.

52a

Appendix D— Affidavit of Dr. Thomas Benson.

In November of 1983 I was awarded the Robert Kibler

Memorial Award by the Speech Communication

Association for the research and efforts that I have made

in these fields.

My research, experience and understanding include

seeking out and explaining the way in which

communication occurs and how ideas are transmitted

through various means of communication, including

television and film.

I have published detailed analysis on the way

television and film messages are constructed and

communicated.

I have seen and reviewed the program “Killer Wheels”

broadcast on March 8, 1981 by CBS, Inc. The following

report supplements my Affidavit of February 29, 1984

that is incorporated by reference herein.

In coming to an understanding of the meaning of a

television broadcast, the viewer relies upon the

information presented and its context. In the case of

“Killer Wheels’, the context and the information are

constructed by CBS to constitute a message

communicating:

1. that all multi-piece rims kill people;

2. that all multi-piece rims are _ inherently,

unpredictably, and frequently lethal in design and use;

3. that single piece rims are a known safe alternative;

4. that the manufacturers of rims know this to be the

case;

53a

Appendix D— Affidavit of Dr. Thomas Benson.

5. that the manufacturers could diminish or eliminate

the hazards of multi-piece rims but refuse to do so

because (a) they fear the loss of business, (b) they fear

that any concession (as through hazard warnings) would

open the way for lawsuits against them and (c) they

fundamentally do not care about the human suffering

caused or potentially caused by their product: and

6. the manufacturers are not simply mistaken, but

that they knowingly, callously, and in their own self

interest misrepresented the facts about devastating

injury.

Crucial to an understanding of how audiences respond

to communication is the concept that interpretation is

contextual rather than atomistic. This is not to say that

audience interpretation is simply a matter of personal

idiosyncracy or general impression, but that any element

in a communication takes its meaning from the context

in which it appears. In what follows, I will present as

directly as possible the reasons for my judgments about

the message of ‘‘Killer Wheels,’ and I will cite specific

elements of the show that communicate the message, but

I shall be doing so in an attempt to show how each

element communicates in the context.

That all multi-piece rims kill people. This allegation of

fact is presented in a number of ways, verbally and

visually. The title of the segment, “Killer Wheels,’ not

only makes the allegation but assumes it as a fact: 60

Minutes is produced by CBS news, and advertised as

such in the show and elsewhere. This carried the

implication that the segment would not be titled as it is

if it were not being reported, named, as a fact. Viewers

are clearly invited to interpret the title of the segment in

this way.

54a

Appendix D— Affidavit of Dr. Thomas Benson.

In the brief introductory sequence, the visual

presentation begins before Mike Wallace’s words. We see

a human figure bending over a tire, which explodes. Only

after we have been invited to think that we have seen a

human being killed, the emotional effect of which is

sustained throughout the rest of the segment, does Mike

Wallace inform us that we have seen a dummy—and he

then alleges that the sequence can be taken as a factual

representation of what happens in reality:

This test film by the Insurance Institute for

Highway Safety was made with a 250-pound

dummy, but it shows graphically what can happen

when a wheel rim explodes. (We then see an

explosion from another angle). ... ‘Unlike the tire

on your automobile, which rests on a single piece

rim like this one, the tires on most of the trucks and

buses on the road rest on a rim made of two or three

pieces, like this one.”

As Wallace finishes his second sentence, we see images

of wheels and rims; while we are looking at a shot of a

multi-piece rim, a voice says, “These things will kill

you’’—and only then does the visual image change to

reveal a man in a blue suit, who finishes the sentence,

with the words, “If you don’t have the required

knowledge to assemble them.”

The effect of the sound-image editing here (in which

the man who is identified here in the transcript, but only

later in the broadcast accessible to the viewer, as Gary

Gardner, a lawyer), is that Gardner’s voice is placed in

the same commentative role as Wallace’s, and is let

stand, not only by the omission of refutation, but by its

editorial placemert, as CBS’s presentation of the

facts—these things will kill you.

55a

Appendix D— Affidavit of Dr. Thomas Benson.

The opening impression that a statement of fact has

been made alleging that multi-piece rims kill is reinforced

in a variety of ways throughout the show:

(1} Wallace says: ‘Killer Wheels—that’s what many

truck drivers and tire mechanics are calling some weel

rims now riding on our highways.”

(2) Wallace says: ‘““They are called multi-piece wheel

rims, and accidents involving them, according to U.S.

Government statistics, have killed more people than have

died in accidents involving the Ford Pinto or the

Firestone 500 Tire.’ (The allegation about U-/S.

Government statistics is clearly meant to establish that

the wheel rims kill as a matter of fact. The fact of the

number of deaths is not mentioned, but is used to create

an impression of deadliness by a comparison whose ocher

meanings I shall return to later.)

(3) Wallace says: ‘So it is no surprise that there has

been a call to ban these wheel rimms from the highways.”’

The phrase ‘So it is no surprise” inserts an editorial

opinion in the guise of a fact, linking the alleged ‘‘fact”’

that the rims are killers to the alleged ‘‘fact’’ that there

is a-call to ban the rims with CBS’s implied approval of

that connection.

(4) Mary Ehmann’s son, Eric, was killed by the

explosion of a multi-piece rim. And in an interview she

reports hearing about other cases.

(5) In his concluding comment, Wallace reports eight

(8) more deaths since his first report.

This review cites only those places in the program

where multi-piece rims are alleged, as a matter of fact, to

have killed (and the word ‘‘kill” is used at other points in

56a

Appendix D— Affidavit of Dr. Thomas Benson.

the breadcast, to bolster the impression). In addition, of

course, the broadcast provides considerable detail on

serious accidents and shows films in which dummies are

destroyed by explosions. That multi-piece rims kill

people is clearly meant to be reported as a matter of fact

by “Killer Wheels.”

Does ‘Killer Wheels” allege as a matter of fact that a//

multi-piece rims kill people? In my judgment, yes. At

several points, the report groups together (1) all multi-

piece rims, or (2) all manufacturers of multi-piece rims.

CBS clearly does not claim that each and every multi-

piece rim has killed or will kill, but its mode of

representation appears to communicate that all multi-

piece rims have the same safety defects, so that a death

caused by one represents a death that could have been

caused by any, and that all manufacturers therefore

fabricate ‘Killer Wheels.’ It appears to be like the case

of three armed robbers in a bank, one of whom shoots

the guard, but all of whom are guilty. The association of

one multi-piece rim with all multi-piece rims, and of one

manufacturer with all manufacturers, is made explicitly

and implicitly in a number of places in the broadcast:

‘“... The tires on most of the trucks and buses on

the road rest on a rim made of two or three pieces,

like this one. . .

These things will kill you.

... We're dealing with only the wheel rims on trucks

and buses and some campers. They are called multi-

piece wheel rims. . .

... These wheel rims

... The companies that make these wheels. . .

57a

Appendix D-- Affidavit of Dr. Thomas Benson.

... And in case you’re wondering that an accident

involving a truck rim is like. . .

... Its design. ..

... Unlike the tire on your automobile, which rests

on a single piece rim like this one, the tires on most

of the trucks and buses on the road rest on a rim

made of two or three pieces, like this one. . .

... Goodyear, one of the manufacturers of multi-

piece rims. . .

Goodyear and the other manufacturers recognize the

hazards connected with multi-piece rims during

_Z deflation or inflation of the tire. . .

... It is for this reason, say the tires makers. . .

The tire makers insist. . .

There are four major manufacturers of multi-piece

rims: Firestone, Goodyear, the Budd Company, and

the Kelsey-Hayes Corporation (this implies that

although there are four major manufacturers, there

are other, “minor” manufacturers whose product

does not materially differ).

... The manufacturers insist. . .

... It turns out that these were not the only doubts

the industry was having about multi-piece rims.

Since we first broadcast this report last March,

...28 additional accidents, including eight (8)

deaths, due to multi-piece rim explosions. Still, the

Reagan administration has announced plans to drop

a proposed rule that would ban all future production

of multi-piece — -el rims. The reason? A conversion

from multi-piec: wheels rims to single piece would

cost the industry upwards of $3,000,000.00 a year.”

*

ro

58a

Appendix D— Affidavit of Dr. Thomas Benson.

From first to last, the CBS story treats the

manufacturers as one industry and the multi-piece rim as

one product— Whenever there are specific examples, they

clearly are meant to represent the whole.

All multi-piece rims are inherently, unpredictably, and

frequently lethal in design and use.

Frequency: This is measured impressionistically but

with a tone of reportorial objectivity, in passages that

compare the multi-piece rim with the Ford Pinto and

Firestone 500; in reference to Ben Kelley’s reperted ‘‘tip

of the iceberg’’ 100 deaths and ‘‘at least 400 injuries’;

references to frequent injuries to innocent by-standers:

and in the final reference to eight (8) deaths and twenty-

eight (28) injuries since the first broadcast.

Inherency: Evidence is cited, and unsupported

assertions are made, regarding the allegedly inherent

danger of multi-piece rims. Because they are made of

more than one piece, we are told repeatedly, multi-piece

rims have an inherent tendency to explode.

Unpredictability: The unpredictable explosiveness of

multi-piece rims is esserted visually in the several

examples of explosions involving dummies, standing in

for people who were or might be surprised by such

accidents. The narratives of the reported accidents are

handled in such a way, in terms of story-telling

techniques, as to stress the surprise and unpredictability

of the accidents. Lloyd James, Sr., is quoted saying,

“The next thing I knew...’’ Mary Ehmann is quoted

saying, ‘‘And when he laid it down, the impact (slaps

hand) of hitting the floor—apparently something wasn’t

quite right, or maybe there was a piece of rust or

something there—”’.

That single piece rims are a known safe alternative.

59a

Appendix D— Affidavit of Dr. Thomas Benson.

At several places in the broadcast, (ail) single rim

wheels are alleged to be safer than (all) multi-piece rims.

CBS quotes Ben Kelley at one point. Kelley says, ‘‘Now

the—the irony is that there is a—an identical design in

which all of the metal is combined—the single piece

wheel, in which it’s all in one piece. There’s nothing

separate from the wheel.’ Wallace confirms Kelley's

remark as a CBS-certified fact by replying, ‘‘Right.”’

Later, Wallace alleges that the only reason for not

switching from multi-piece rims to single piece rims is

the cost of a conversion—an allegation as to the fact of

the safety and the fact of the manufacturers’ motives.

That the manufacturers know this to be the case.

The industry is made to impeach itself in the excerpt

from the Goodyear safety film (an apparent case of a

reluctant witness, as CBS frames it). And in the

interview with Jack Bradley, Wallace works to impeach

Bradley and, despite Bradley’s denials, remarks, as an

apparent statement of fact, at the conclusion of part of

the interview, “It turns out that these were not the only

doubts the industry was having about multi-piece rims.”

That the manufacturers could diminish or eliminate the

hazards of multi-piece rims but refuse to do so because

(a) they fear the loss of business, (b) they fear that any

concession (as through hazard warnings) would open the

way for lawsuits against them, and (c) they

fundamentally do not care about the human suffering

caused or potentially caused by their product.

Wallace alleges early in the segment that the story is

about not simply the multi-piece wheel rim, but about

corporate decisions and their motivations. At several

places, CBS and the friendly witnesses whose remarks

60a

Appendix D— Affidavit of Dr. Thomas Benson.

are accepted as facts, repeat that the companies are

motivated by profit, that they fear lawsuits, and that

they are afraid to concede the facts for fear they would

lose money. All of these allegations tend to establish the

heartlessness of the corporations, a topic which is capped

by the editing of the end of the Bradley interview, in

which Bradley is made to smilingly accept the tradeoff of

lives for money as “the way life is.”’

That the manufacturers are not simply mistaken, but

that they knowingly, callously, and in their own self

interest misrepresented the facts about devastating

injury.

It appears to be important to the meaning of the show

that it is not regarded as a debate about the merits of

the multi-piece rim, but the factual report of a

scandalous and knowing disregard of the public safety.

This conclusion is implied to be a matter of fact growing

out of the alleged facts that the manufacturers of multi-

piece rims continued to manufacture them even though

they knew them to be lethal and knew that there was a

safe alternative. The entire focus of the show has to do,

not with weighing the merits of the multi-piece rim, but

about demonstrating the capability of (all) the

manufacturers in the face of the allegedly factual

lethality of (all) multi-piece rims.

So far, I have relied primarily upon the verbal porticn

of the broadcast to establish its probable meanings for

an audience. I have tried to show how a series of

statements, taken together, create a predictable message

as fact. Assuming the widely advertised competence of

CBS news, it is hard to see how a different reading could

be expected or intended.

6la

Appendix D— Affidavit of Dr. Thomas Benson.

There is more to the context, of course, than the words

spoken. The visual treatment of the material is designed

to reinforce the impression that I have reported.

‘Killer Wheels’ is developed with an audio-visual style

that strongly implies the mobility, knowledge, and

objectivity of CBS. Interviews are cut in such a way, for

example, that a single camera appears to be able to move

instantaneously through time and space as it does in a

fiction film. Documents are inserted in the midst of an

interview. When Lloyd James's accident is reported,

CBS goes to Clayton, Georgia to film the service

station—creating an air of immediacy and implying a

willingness to go to any lengths to report the actual

facts. In the staging of the first explosion, the film

(staged, we are told after it has begun, by the Insurance

Institute for Highway Safety, and using a dummy)

appears at first to show a man being blown apart: This

is accomplished by a series of three shots:

{1) a man is shown bending over a wheel on the side

of the highway;

(2) a truck passes down the highway, obscuring the

screen;

(3) in what appears to be a continuation of shot 41,

the tire explodes, hurling a figure into the air—then we

are told that it is a dummy. Shot #2 is used to mask a

cut to the new shot.

The use of a second shot to interrupt an ongoing shot

is used in interview sequences, in what is called a

cutaway, to cover the omission of part of the interview.

From the point of view of my own analysis of the visual

technique of ‘‘Killer Wheels,’’ it is possible to describe

the technique and its probable meanings to viewers. But

62a

Appendix D— Affidavit of Dr. Thomas Benson.

without looking at the outtakes, it is impossible to report

with precision on whether CBS drastically

misrepresented the sequence of events in interviews.

The matter of cutaways and the audio-visual style of

television reporting perhaps needs some _ further

elaboration. I understand that my analysis will have

bearing on the question of libel, but I am writing from

the point of view of an expert on communication and not

on the law of libel.

The matter of the cutaway shot and its implications is

a potentially complicated one. In news and documentary

reporting, most scenes are filmed with one camera. That

camera is focused during the major portion of the

interview on the person being interviewed, and the

continuous footage that results is called the master shot.

At the editing state, the master shot will be shortened,

primarily for considerations of time, but also to retain

only the portions of the interview that contribute to the

story the reporter wishes to tell.

If the interview footage consists only of the master

shot itself, its cutting would result in a “‘jump cut’’ each

time a portion of the shot was discarded. A jump cut is

created when a portion of the shot was removed, and the

resulting edited cut reveals an obvious, even if minor,

‘‘jump” of the subject matter in the frame, resulting in an

obvious and distracting discontinuity. To bridge such

unconventional discontinuities, it is common practice to

film “‘cutaway”’ shots that can be inserted into the gap in

the master shot, hiding the discontinuity and acting as a

bridge that preserves the illusion of continuous time in

the interview.

63a

Appendix D— Affidavit of Dr. Thomas Benson.

The most common cutaway shot in an interview is the

“reverse” shot of the interviewer. Other cutaway shots

might include a close-up of the interviewee’s hands, or a

long-shot of the room in which the interviewee and

reporter are talking. Most interviews coiducted outside

the studio employ only one camera. Hence, any cutaway

shots are usually filmed before or after the interview

itself, and are not part of the moment in time that they

are made to appear to be. And, of course, once the

cutaway is accepted as a convention, it obscures the gap

in the master shot, rather than revealing it.

It would perhaps be excessive to object to cutaways in

news reporting generally. They are conventional, and they

do contribute to the creation of an impression of reality.

The cutaway can actually enhance communication by

making an interview more interesting (by providing some

visual relief); by avoiding the distracting discontinuities

of a jump cut (thus enabling the viewer to pay closing

attention to the edited content); by reminding the viewer

of the presence of the interviewer who is revealed in the

reverse-angle cutaway; by re-establishing the credibility

and star-value of the reporter by cutting to him for a

reverse angle in which he asks a question or guides our

interpretation by the expression with which he listens to

an answer. But the cutaway is also subject to abuse. All

of the features that allow the cutaway shot to enhance

the impression of reality (by re-constructing reality) can

be used in such a way as to be unfair or, worse, to

literally misrepresent the truth.

The cutaway shot is one clue as to the differential

treatment accorded to people interviewed for “Killer

Wheels.”’ It is clear from the broadcast that Jack

Bradley’s interview is interrupted more frequently, and

64a

Appendix D— Affidavit of Dr. Thomas Benson.

with different materials, than the others. The effect is

not only to undermine Bradley’s credibility, but to alter

the tenor of his answers and, quite possibly, to

misrepresent the continuity of the logic of question and

answer.

It is at this point that one must pause and comment

on the use of the cutaway (and film technique in general)

as a device for interpretetion. As a matter of

communication theory, and invoking a comparison

between film and language, it would seem that if

television and film can invoke the protection of the First

Amendment, then they must also accept its

responsibilities. That is, any medium of communication

capable of invoking the protection of the First

Amendment is claiming a certain status as

communication, rather than simply claiming that it is

totally irrelevant both to libel and the First Amendment.

This follows from principles well established as matters

of communication theory.

From the point of view of communication theory, it

would be inaccurate to claim that television was, by its

nature, either (1) purely factual and objective, or (2)

merely a matter of opinion and interpretation, with no

claim to make statements that are either accurate or

inaccurate. Film (and television), like spoken and written

language, is always interpretive, and therefore not

perfectly objective.

But film and television, like language, are also capable,

particularly when using language as one of their

elements, of telling the truth and lying, of defending or

defaming. One need not claim, that is, that all language

is or ought to be “objective” to claim that language is

65a

Appendix D— Affidavit of Dr. Thomas Benson.

capable of telling the truth, or lying. The same holds for

television, though there are important differences

between spoken and written language and _ the

“language” of television.

The techniques of television documentary and news

narration are interpretive, but this does not vitiate their

claims or their effect as broadcast news reporting. Part

of the explicit and implicit message of 60 Minutes is that

it is taking enormous care to be accurate about the facts,

that it is competent to identify and communicate the

facts, and, in the case of ‘Killer Wheels,”’ that the facts

are essentially as set forth herein.

The issue of factuality needs to be addressed from

another angle. From the point of view of communication

theory and its relation both to decision-making and

opinion-formation, the issues addressed by ‘Killer

Wheels” would appear to be debatable. That is, by their

nature, the questions of whether multi-piece rims are

lethal, and whether the industry knowingly manufactures

a lethal product, are capable of being addressed as

matters of opinion and as debatable. And there is

nothing about television, either as a medium or as a

pattern of communicative practices, that prevents it

from presenting these matters as debatable. But ‘‘Killer

Wheels’’ does not present them as debatable or as

opinion. Rather, “Killer Wheels’ presents, as matters of

fact, the lethality of multi-piece rims and the culpability

of the manufacturers.

The issue of factuality versus opinion would seem to

place the manufacturers in a particularly difficult

position in trying to defend themselves, either in public

or in court. Should it be understood that if a multi-piece

66a

Appendix D— Affidavit of Dr. Thomas Benson.

rim manufacturer provides evidence to indicate the

safety of his product, he is implicitly conceding that the

safety issue is simply a matter of debate (or of opinion)

and that he therefore has conceded CBS's claim to be

simply setting forth an opinion? From the point of view

of communication theory, such a claim would seem to

make any libel impossible to prosecute, since the

Defendant would simply have to draw the Plaintiff into a

debate about the merits of the original issue and then

point out that the communication complained of is

thereby conceded to be a matter of opinion. In my view,

CBS clearly, and unnecessarily, claimed that it was

presenting the facts.

I think it is also clear that in addition to is aura of

factuality, CBS usd the elements of television

communication to encourage emotional responses to the

material. For example, it appears to me that an average

viewer is induced to experience fear, pity, and anger in

quite predictable ways. Fear: The shots of the

explosions, the shots of (potentially explosive) trucks

travelling the highways, and others. Pity: The shots of

accident victims and their relatives. Anger: The smiles of

Jack Bradley—not only in the context of Mike Wallace's

questions, but in the context of the shots which have

aroused our fear and pity, and which are a part of our

context, but were not a part of Bradley's context.

The emotional responses encouraged by the CBS style

in this case are not merely results of the factual case

made out against multi-piece rim manufacturers, but

work to reinforce it. The emotional structure of the show

works as a form of rhetorical proof that casts the show

as a drama involving innocent victims, friendly

witnesses, an indignant but objective reporter (backed up

67a

Appendix D— Affidavit of Dr. Thomas Benson.

by the resources of a network of information gatherers),

and a heartless industry representative with something

to hide.

The dramatic structure of the show works to make

Bradley seem not just unsympathetic, but unbelievable.

Bradley’s honesty is impugned with cutaways to

documents that go by too fast for us to fully

comprehend, and with other cutaways that may bridge

distorting gaps in the continuity of the question-and-

answer sequence. But in addition to these means of

undermining Bradley’s testimony, other suggestions are

made structurally. If Bradley is unsympathetic to the

victims of multi-piece rim accidents, that would appear

to testify to the industry’s callous disregard of the public

safety. And when Bradley makes an engineer’s answer to

the question of whether multi-piece rims are dangerous

(he says, “They are not dangerous’’), any audience

member who has seen the demonstration films and the

mutilated victims and the grieving parents must take

Bradley for a fool or a liar.

Every reasonable viewer must believe by this point in

the broadcast that multi-piece rims are dangerous, and

Bradley’s answer (which is presumably addressed to the

statistical and engineering aspect of the question) is

edited into the show so as to seem a denial of the human

suffering that has been vividly and _ undeniably

portrayed.

In my view, responsible news journalism would not

thus structure a show to imply to an audience that a

person was answering one question when he was in fact

answering another. The techniques of interviewing and

television narrative are employed in “Killer Wheels’”’ in

68a

Appendix D— Affidavit ef Dr. Thomas Benson.

such a way as to make Jack Bradley represent the

industry, and to make him appear not only heartless but

dishonest. He is the only witness whose story is cross-

examined, his answers are clearly distorted in meaning

by their placement in context, and it may be that editing

has been used to put some of his answers directly out of

context—a fact which cannot be verified without

inspection of the pre-edited interview materials.

I am a communication scholar, not an engineer or

lawyer. I do not know whether “Killer Wheels’ is

libelous, and I do not know whether multi-piece rims are

safe. It is clear to me that CBS made out what it

presents as a factual account of ‘‘killer wheels”.

THOMAS W. BENSON

Thomas Benson

Sworn and subscribed to before me

this 25th day of (Illegible), 1984.

CONSTANCE M. WHEELER

Notary Public

University Park, Centre County, Pa.

My Commission Expires July 22, 1985

ee er

69a

APPENDIX E

Affidavit of J. B. Sechrist

IN THE UNITED STATES DISTRICT COURT

for the Middle District of Pennsylvania

Civil Action No. 82-0263

REDCO CORPORATION,

Plaintiff,

"ws

CBS, INC. and THE INSURANCE INSTITUTE

FOR HIGHWAY SAFETY,

Defendants.

AFFIDAVIT

My name is J. B. Sechrist. I am familiar with the

information hereinafter referred to as emanating from

files of The Insurance Institute of Highway Safety. I am

familiar with the effect of the insurance institute's

efforts to ban multi-piece wheels including the effect of

the CBS show ‘Killer Wheels”’.

1.

On June 29, 1977, Lynn Smith of IIHS received

information from the Bureau of Motor Carrier Safety

suggesting that ... “‘very few accidents today are

related to wheel failures’’. See Exhibit A.

70a

Appendix E—Affidavit of J. B. Sechrist.

2.

The Insurance Institute for Highway Safety used a

“clipping service’ to obtain information about multi-

piece rims and made no effort to collect information

about single piece rims. See Exhibit B.

3.

By letter of November 24, 1977, the IIHS knew that

drop-center type wheels (single piece) exploded through

tire bead failure. See Exhibit C.

4.

By letter of Sept. 25, 1978, IIHS is shown to have

knowledge that the North Dakota Workman's

Compensation Research revealed forty single piece rim

accidents. This information was ignored and suppressed

by ITHS. See Exhibit D.

5.

By memo of June 30, 1978, IIHS had additional

information suggesting that single piece wheels fail. See

Exhibit E.

6.

By memo of July 17, 1978, IIHS had information

suggesting that single piece and multi-piece wheels

resulted in loss of control if a front tire went flat. See

Exhibit F.

71la

Appendix E—Affidavit of J. B. Sechrist.

7.

By letter of September 12, 1978, the state of Texas

reported there was no problem in two years with rim

separation. See Exhibit G.

8.

The ‘“‘test’’ film prepared by IIHS and broadcast on

CBS program “Killer Wheels’ violated OSHA standards

passed on January 29, 1980. See Exhibit H.

9.

On January 29, 1980, OSHA also dispensed with

requirement of warning labels on multi-piece rims. This

information was known or should have been known by

IIHS. See Exhibit I.

10.

On and before March 8, 1981, the IIHS knew or should

have known of the South Coast Technology report. (See

Exhibit C in Plaintiff’s Appendix to Brief in Opposition

to Motion for Summary Judgment), and the Phase III

report of Failure Analysis Associates (See Exhibit B in

Plaintiff's Appendix to Brief in Opposition to Motion for

Summary Judgment), that set fort an authoritative study

of multi-piece rim failures and acknowledged that single

piece rims proportionally cause as many or more injuries

and deaths as multi-piece rims.

72a

Appendix E—Affidavit of J. B. Sechrist.

11.

The efforts of IIHS and the CBS “Killer Wheels’

program promoted the promulgation within the State

Board of Education in Maryland of Cornor 13.A.06.07

that would eliminate the use of multi-piece rims on

school buses and force the use of single piece rims with

tube type tires. This rule was not adopted when all the

safety evidence was presented. However, if it had been

adopted. ... The school children of Maryland would have

been exposed to accident frequency twenty-five times

higher than children in buses using multi-piece wheels.

12.

_. The Redco multi-piece rim is designed with a reverse

nine (9°) degree locking ring and base assembly. This

product has not killed any servicemen, innocent

bystanders, truck drivers or other users.

13.

A summary attached hereto reflects accurately the

information available to IIHS and their conduct in

attempting to ban multi-picce rims. The exhibits, if not

already in the record, are readily available to

substantiate the summary. See Exhibit J.

J. B. SECHRIST

J. B. Sechrist II, Vice President

Redco Corporation

Sworn and subscribed to before me

this 26th day of April, 1984.

(Illegible)

Notary Public

(Illegible)

73a

Appendix E—Affidavit of J. B. Sechrist.

EXHIBIT J

SUMMARY AND COMPILATION OF DOCUMENTS

EVIDENCING THE UNTRUSTWORTHINESS

AND INACCURACY OF

INSURANCE INSTITUTE FOR HIGHWAY SAFETY

STATEMENTS ON MULTI-PIECE RIMS

The Insurance Institute for Highway Safety, working

in concert with plaintiffs’ attorneys, has been the

principal source of public statements attacking the

safety of multi-piece rims. It has been by far and away

the leading overt instigator of government action against

multi-piece rims. Unfortunately, the Insurance Institute

has misled and actively deceived the National Highway

Traffic Safety Administration (NHTSA) about multi-

piece rim safety, making public statements to the

NHTSA about mu‘‘i-piece rim hazards which were

contradicted by its own non-public records and the

expressed views of its own technical staff. What is more,

the data which the Institute supplied to the NHTSA was

full of errors and wholly unreliable. The Insurance

Institute now has filed the same false and misleading

information with the Maryland Board of Education.

Thus, it has provided the Board of Education staff the

same petitions to ban and recall multi-piece rims which it

filed with the NHTSA in 1978 and the numerous follow-

on filings it made with that Agency.

Fortunately, the NHTSA was able to pierce the

Insurance Institute misrepresentations and inaccuracies.

It has rejected the Insurance Institute petition for a rule

banning multi-piece rims (47 Fed. Reg. 8232, February

25, 1982), and it regarded the companion petition for a

defect investigation to recall multi-piece rims as so

poorly based that it declined to open a formal

investigation.

74a

Appendix E—Affidavit of J. B. Sechrist.

It is essential that the Maryland Board of Education

also not be misled and that it, too, see the active

misrepresentation engaged in by the Insurance Institute.

1. Misrepresentations by the Insurance Institute: The

Insurance Institute misled the NHTSA both by active

misrepresentations and by materially misleading

omissions in the information it filed with the NHTSA.

For example, seven months before the Institute's first

Petition to the NHTSA on June 14, 1978, it

corresponded with Dr. Alan Milner, a metallurgist who

owned a service garage and held himself out as an expert

in tire mounting accidents, to secure consulting services

on rim disengagements. Dr. Milner wrote back on

November 24, 1977, stating:

Thank you for your letter of November 8, 1977

inquiring about my background in multi-component

truck wheel explosions.

I do have some experience with multi-component

rim separation explosions, although most of my

experience concerns tire bead failure related

explosions in drop center [single piece] type wheels.

I have investigated accidents involving post

mounting separations on continuous base,

continuous side ring type wheels [multi-piece] of the

Firestone type. These have been plaintiffs’ cases

which have involved fairly gross malpractice on

behalf of the tire mounting operator in terms of

failure to properly inspect and clean the rim

components which were heavily rusted. See Exhibit

A.

75a

Appendix E—Affidavit of J. B. Sechrist.

Dr. Milner thus told the Insurance Institute two things:

(1) in his experience multi-piece rim disengagements

resulted from ‘fairly gross malpractice’’ by tire

mounting operators; and (2) in his experience the use of

drop center type wheels such as the Insurance Institute

and the Maryland Board of Education are advocating

can result in explosive tire bead failures. The Insurance

Institute’s files do not reflect further correspondence

with Dr. Milner. Importantly, the Insurance Institute

materially misled the NHTSA, and now the State of

Maryland as well, in the information it filed with the

NHTSA by omitting any reference to or reflection of the

information Dr. Milner furnished.

More significant is the fact that two weeks before the

filing of the Institute’s petition for a defect

investigation, its own technical staff indicated in writing

to the Institute’s president that a recall of multi-piece

rims was not warranted:

I have reviewed three main sources of information

for their technical content on multi-piece wheels: the

Risjord files [a plaintiff's attorney], major wheel

manufacturers’ catalogues, and the Value

Engineering Lab rim tests. These sources, either

separately or collectively, do not provide a sound

technical basis for recalling any or all multi-piece rim

designs from service. (The emphasis, which appears

in the copy of the document provided under

subpoena, was added by hand at the Insurance

Institute.) See Exhibit B.

76a

Appendix E—Affidavit of J. B. Sechrist.

This advice also was not mentioned in the Insurance

Institute Petition to the NHTSA nor to the Maryland

Board of Education staff.! This is noteworthy because it

addresses and finds lacking as a basis for recall: (1) the

only new data presented to NHTSA by the Insurance

Institute (the accident records in the Risjord files); and

(2) the oniy NHTSA consultant study dealing with the

safety of multi-piece rims and relied upon by the

Insurance Institute in its June 14, 1978 Petition (at page

4).

The Insurance Institute’s public position that the

educational and other shop requirements of the then

pending and now effective OSHA standard for servicing

multi-piece rims would not be effective in reducing

accidents was also inconsistent with information in its

internal files. The Insurance Institute knew, or had reason

to know, from a document in its files that adoption of an

appropriate OSHA standard would eliminate any hazards

associated with multi-piece rims. That document is an

Interoffice Memorandum of the Ford Motor Company

dated December 12, 1974, obviously written without

external motivation. The document states that:

Fifteen incidents of wheel and side ring separation

[Budd Duo Rims] of F250 and F350 vehicles were

reported between February 18 and July 2, 1974.

'On deposition in a subsequent court proceeding, the Institute's

President, Dr. William Haddon, disingenuously sought to minimize

the significance of this staff conclusion. Dr. Haddon attempted to

dismiss it as based on a staff misunderstanding that the concept of

defect did not include design defects. Haddon Deposition, In

Re: Multi-Piece Rim Products Liability Litigation, M.D.L. Docket

No. 362 (W.D. Mo. Nov. 20, 1981). The transparency of his efforts is

clear from even a cursory review of the staff memorandum, which

dealt expressly with whether there was a design defect in the rims.

Notwithstanding Dr. Haddon’s dissembling, the staff member knew

that the issue was whether there was a design defect in the rims and

concluded that the Insurance Institute's data did not support the

conclusion that there was. See Exhibit B.

CS __i

77a

Appendix E—Affidavit of J. B. Sechrist.

Inspection of returned parts, twelve side rings and

thirteen wheels, disclosed only a minor dimensional

discrepancy on the wheels. Laboratory and vehicle

tests conducted with wheels exhibiting this

discrepancy proved retention to be satisfactory;

separation could only be duplicated by deliberate

misassembly of the side ring to the wheel.

To preclude any occurrence of misassembly at first

delivery, a process note was added to verify full side-

ring to wheel gutter engagement; all assembly plants

reported 100% compliance on 7-5-74. No further

reports of this discrepancy have been received since

7-2-74.

Since it has been demonstrated that wheel side ring

separation occurs as a result of misassembly and the

necessary precautions have been taken to assure

proper assembly, the file is being closed and your

concurrence is recommended. (Emphasis appears on

the copy of the document provided by the Insurance

Institute pursuant to a subpoena, indicating that its

attention was clearly focused on this information.)

See Exhibit C.

The Insurance Institute has engaged in numerous

other misrepresentations and mischaracterizations in its

petitions to the NHTSA. Thus, in its petitions to the

NHTSA characterizing the ‘“‘extent of the problem,”’ the

Insurance Institute refers to a Bureau of Motor Carrier

Safety (BMCS) Report supposedly determining ‘‘that tire

and wheel failures constitute the second largest cause of

truck crashes.’’ Petition, June 14, 1978, at 8; Petition,

October 2, 1978, at 1. That is an obvious misstatement.

The referenced BMCS Report does not even purport to

78a

Appendix E—Affidavit of J. B. Sechrist.

identify or compile statistics on rim _ separations.’

Moreover, internal Insurance Institute documents show

that in 1977 Bureau of Motor Carrier Safety personnel

expressly advised the Institute's staff that ‘‘... very few

accidents today are related to wheel failures.’’ Insurance

Institute Memorandum to File, dated June 29, 1977

(Exhibit D).

On at least two occasions, the Institute has

misrepresented the problem of rim disengagement by

including in its public allegations the discussion of a

NHTSA _ multi-piece rim investigation which it

characterized as being of ‘‘major concern.”’ The

investigation referred to did not have anything to do

with multi-piece rim disengagement. The investigation

related solely to wheels which suffered impact fractures

due to overloading. See Insurance Institute Petition,

June 14, 1978, at 2-3; and Insurance Institute Letter to

the NHTSA, August 28, 1979.

The Insurance Institute submitted with its October 2,

1978 Petition a film showing an explosive disengagement

of a multi-piece rim. The Institute said of its

demonstration: ‘“‘We deliberately modified the wheels to

assure an explosion under pressure of tire inflation.’’ The

Institute failed to disclose to the NHTSA or the press

what the words ‘‘deliberately modified’’ actually meant.

In order to explode the filmed rim assembly, the

Institute was compelled to machine away the rim’s

retaining hook which makes the particular multi-piece

rim lock. If the Insurance Institute had disclosed that

fact, it doubtless would have to disclose that when a

>This same falsehood was reiterated by Ben Kelly, an Insurance

Institute Senior Vice President, in a December 1980 speech at Johns

Hopkins University.

79a

Appendix E—Affidavit of J. B. Sechrist.

multi-piece rim is properly assembled, it cannot be made

to fail except by conduct so unreasonable as _ to

constitute gross negligence. Whatever publicity value

this film may have, it has nothing to do with the safety

of a properly assembled multi-piece rim.

The Insurance Institute also misled the Agency in

another way. It cloaked itself in purported expertise,

invoking the results of its ‘“research’’ and ‘“‘testing’’ to

make seemingly authoritative statements about the

design of multi-piece truck rims and the comparative

design and performance superiority of single piece rims.

Yet, in truth, the Insurance Institute had no real

expertise in the field, did no independent research, did no

testing, and did no study of single piece rim technology

or accident data. Its conclusions lacked any legitimate

basis for belief, much less authoritative status.

The head of the Insurance Institute’s multi-piece rim

“‘investigation’’ was John Arminio. In sworn deposition

in Fiscus v. Gay Johnson, Inc., C.A. No. C-82810

(Denver Dist. Ct., Colo. Sept. 4, 1980), Mr. Arminio

revealed the total lack of expertise which the Insurance

Institute brought to its investigation, and the incredible

methodological deficiencies in that investigation.

Mr. Arminio, for example, had no education or

experience in engineering, accident investigation, wheel

maintenance and servicing, or highway safety generally

when he arrived at the Insurance Institute in September,

1977, fresh from law school. (Dep. Tr. at 13-15.) Within

six months he had been put in charge of the Insurance

Institute’s multi-piece rim investigation.

80a

Appendix E—Affidavit of J. B. Sechrist.

Mr. Arminio admitted that he ‘never personally

investigated an accident’’ of multi-piece rim separation,

that all the information he had concerning such accidents

was hearsay, and that neither he, nor to his knowledge,

any member of the Insurance Institute _ staff,

investigated any of the multi-piece rim incidents alleged

in any of the principal hearsay sources they relied on.

Arminio stated he thought he once had examined a rim

which had been involved in an incident. (Dep. Tr. at 38-

47, 90, 94-95.) Arminio had never assembled any kind of

multi-piece rim. What is more, no one at the Institute

investigated or knew anything about single piece rims.

(Dep. Tr. at 100-05, 173.) Yet, the only engineering

experts which the Insurance Institute retained were

brought in to deliberately cause a phony rim separation

accident so it could be ffilmed for _ publicity

purposes—that was the only “testing” in its entire

investigation. (See Dep. Tr. 152-53.)

Thus, when the Insurance Institute described its

investigation in court papers as late as 1981. it had to

admit that it still “has no firsthand knowledge of

accidents involving multi-piece rims’ and that all of the

information it had furnished NHTSA was “multiple

hearsay." The Insurance Institute has even argued in

court that any government report based on data which

the Insurance Institute had supplied would not be

admissible as evidence for this reason. ‘‘Suggestions of

the Insurance Institute for Highway Safety in

Opposition to Firestone’s Request for Depositions,”’ pp. 8-

9, In Re: Multi-Piece Rim Products Liability Litigation,

M.D.L. Docket No. 362 (W.D. Mo. dated July 29, 1981).

ae -

8la

Appendix E—Affidavit of J. B. Sechrist.

The Insurance Institute misrepresentations did not

stop with the filing of their petitions with the NHTSA.

After the NHTSA rejected the proposed rule banning

multi-piece rims, relying in part on the OSHA rim

servicing standard and the availability of OSHA safety

charts, the Insurance Institute wrote the NHTSA

objecting that ‘‘apparently the rim matching charts and

safety charts put out jointly by NHTSA and OSHA are

out of print and unavailable in quantity from any

government source.’’ That assertion was inaccurate and

misleading.

The safety and matching charts referenced by the

Insurance Institute are available free of charge both

from the NHTSA and from OSHA. They also may be

ordered in bulk quantities through the Government

Printing Office (GPO). The GPO periodically reprints the

posters as the quantitites in stock are depleted. The last

reprinting by GPO was in the Spring of 1982, when

50,000 of the charts were printed. The charts are not

and will not be ‘‘unavailable,’’ because the quantity in

stock is monitored by Richard F. Sauger of OSHA's Office

of Safety Standards. He authorizes the printing of new

charts by GPO as they are needed. Mr. Sauger has

informed Ms. Michele Fields, an Attorney at the

Insurance Institute, of the continued availability of the

charts.

The Insurance Institute, through public misstatements

of its officials, has sought to create the impression that

the federal OSHA -vorkplace standard for servicing

multi-piece rims cannot be effective in reducing rim

accidents. Thus, in a 1980 speech at Johns Hopkins

University, Ben Kelley of the Insurance Institute

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Appendix E—Affidavit of J. B. Sechrist.

asserted that there is no data suggesting that the similar

California standard has reduced accidents. That was a

false statement. California Department of Industrial

Relations data reported to the NHTSA by Failure

Analysis Associates and available to Mr. Kelley showed

there were no fatal accidents involving multi-piece rims

in that state since 1975, clearly evidencing the

effectiveness of the Cal-OSHA rim servicing standard.

Mr. Kelley not only is capable of false statements

about rim safety, he is capable of malicious gossip. In his

speech at Johns Hopkins he told the story that some

plaintiffs’ lawyers were asserting that past

investigations by the NHTSA of multi-piece rims were

squelched by political payoffs. He will not be able to tell

that story again. The Inspector General of the

Department of Transportation found there was no basis

for the allegation, and a federal court in Kansas City,

Missouri recently ruled there is absolutely no basis for

that claim.

2. Unreliable data from the Insurance Institute: The

Insurance Institute submitted accident lists to the

NHTSA and to the Maryland Board of Education which

are full of errors and unsubstantiated, biased, and

irrelevant but misleading data. Exhibit E is the affidavit

of Dr. H. Daniel Roth, a noted statistical methodologist,

‘who has analyzed the Insurance Institute’s submissions.

His affidavit and conclusions reveal the inacc

This text is long and has been trimmed here. Open the source document for the complete record.

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