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Batchelder vs. Malibu case SEC filing


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Malibu filed an 8-K form with the U.S. Securities and Exchange Commission (SEC) on 31 August 2021 regarding them losing the trial above and $200 million being awarded to the family of the deceased boy.

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Item 8.01. Other Events

As previously disclosed, Malibu Boats, Inc., (the “Company”) and its indirect subsidiary Malibu Boats, LLC (“Boats LLC”) are defendants in the product liability case brought by Stephen Paul Batchelder and Margaret Mary Batchelder, individually, and as Administrators of the Estate of Ryan Paul Batchelder, deceased (“Plaintiffs”). Plaintiffs also sued the manufacturer of the boat at issue in the case, Malibu Boats West, Inc. (“West”). West is not, and has never been, a subsidiary of the Company but was a separate legal entity whose assets were purchased by Boats LLC in 2006. The case involves a personal injury accident in 2014 involving the propeller of a 2000 model year boat that was manufactured by West.

On August 28, 2021, the jury rejected the Plaintiffs’ design defect claims and found that the driver of the boat was 75% at fault for the accident. Notwithstanding those findings, the jury found that Boats LLC and West negligently failed to warn of a hazard posed by the relevant boat and that such failure was a proximate cause of the death of the decedent. The jury also found that Boats LLC is a legal successor of, and responsible for the liabilities of, West. The jury awarded compensatory damages of $80 million and apportioned 15% of such damages to Boats LLC and 10% of such damages to West. The jury also awarded $80 million of punitive damages against Boats LLC and $40 million of punitive damages against West. Based on the jury’s finding of successor liability, which Boats LLC contends is erroneous, immediately after the verdict the trial court entered judgment against West and Boats LLC, with a potential maximum liability to Boats LLC of $140 million. While the Company and Boats LLC maintain product liability insurance applicable to this case, such insurance coverage may be limited to $26 million.

The Company strongly disagrees with the verdict and the judgment, and intends to file post-trial motions with the trial judge. The Company intends to appeal in the event its post-trial motions are unsuccessful. Pending resolution of the post-trial and appeals process, the payment of any damages in this matter is expected to be stayed. The name of the case is Batchelder et al. v. Malibu Boats, LLC, f/k/a Malibu Boats, Inc.; Malibu Boats West, Inc., et. al., Superior Court of Rabun County, Georgia, Civil Action Case No. 2016-CV-0114-C.

This Current Report on Form 8-K contains forward-looking statements. All statements other than statements of historical facts contained in this Form 8-K are forward-looking statements, including statements regarding the litigation described above, the Company’s assessment of such litigation and any actions the Company may take in response to the jury’s findings and trial court’s judgment, including any post-trial motions and appeals, and the ultimate impact of such litigation on the Company’s business and financial condition. Actual results may differ materially from those suggested by the forward-looking statements for various reasons, including those discussed under “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2021. You should not rely on forward-looking statements as predictions of future events. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance or achievements. Except as required by law, the Company assumes no obligation to update forward-looking statements for any reason after the date of this Form 8-K to conform these statements to actual results or to changes in the Company’s expectations.

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Gary Polson

Edited by Chartman
to sign it
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@Chartman has a total of NINE posts, ALL of them on this topic, and EIGHT of them in this thread HE started. Hmmm…  Smells like somebody’s got an agenda, can’t put my finger on it. But the more y

Just an FYI   This Malibu Crew forum has from day one never been supported, owned, run, taken suggestions on how to run or otherwise been associated with Malibu Boats. It is a user owned and supp

Quoting myself… let me try this a different way.  Today MBUU has $41M cash in the bank. Let that sink in @shawndoggy. Just because a company is a “NASDAQ listed public company” doesn’t mean they

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Our legal system is an absolute mess. It's like winning money from Remington because a person was shot by a Remington rifle.

I wonder how much liability lands on the company that rented that boat to an inexperienced "captain". The bow of the boat was swamped intentionally, because he was mistreating like a rental. 

Also, how many drinks did that unfortunate uncle consume prior to intentionally swamping the rental boat, only to make the kids laugh? 

The whole thing is gross. Rental boats are probably my least favorite part of being a boat owner. 

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8 minutes ago, BigCreek said:

Also, how many drinks did that unfortunate uncle consume prior to intentionally swamping the rental boat, only to make the kids laugh?

they said he was checked and alcohol was not a contributing factor.

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1 hour ago, BigCreek said:

Our legal system is an absolute mess. It's like winning money from Remington because a person was shot by a Remington rifle.

I wonder how much liability lands on the company that rented that boat to an inexperienced "captain". The bow of the boat was swamped intentionally, because he was mistreating like a rental. 

Also, how many drinks did that unfortunate uncle consume prior to intentionally swamping the rental boat, only to make the kids laugh? 

The whole thing is gross. Rental boats are probably my least favorite part of being a boat owner. 

Lawyers caused this years ago. Too much interpretation of law allowed and way too many laws on the books now. 

  • Like 3
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3 hours ago, Surfbeast21 said:

Lawyers caused this years ago. Too much interpretation of law allowed and way too many laws on the books now. 

And nobody owning up to what should be there responsibility.

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3 hours ago, Surfbeast21 said:

Lawyers caused this years ago. Too much interpretation of law allowed and way too many laws on the books now. 

Lawyers wouldn't be successful without juries of our peers to render verdicts in their clients' favor.

From the press release, it sounds like this was a negligence (tort) case.  AFAIK, there isn't a "law on the books" for that... it's all common law.

The successor liability question (as described in the press release) is a very interesting one here.  For the folks with the long malibu history, were there two malibu companies prior to 2006 (i.e. like and "east" and a "west"), or was Malibu Boats West, Inc. the "whole" company?

Edited by shawndoggy
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Horrible tragedy for the family but don't see how it's a Malibu issue.  I am an experienced boater and was driving my friends boat a couple weeks back (inboard SkiRay) with my wife and a teenager in the front. The other times I had driven the boat the bow was always empty.  I took a wave over the front for the first time ever in that boat because I wasn't used to the added weight in the bow (and we are talking maybe a combined 200 lbs).  The difference is I was paying attention and didn't have someone go overboard without realizing it and then run over them.  I am not sure who the blame falls on other than the driver and the rental company for not doing a better job of educating.   I have always been very aware in my boat when there are kids in the bow and underway.  Butts have to be on seats and a hand on a rail...still makes me a little nervous.

  • Like 3
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18 hours ago, shawndoggy said:

Lawyers wouldn't be successful without juries of our peers to render verdicts in their clients' favor.

From the press release, it sounds like this was a negligence (tort) case.  AFAIK, there isn't a "law on the books" for that... it's all common law.

The successor liability question (as described in the press release) is a very interesting one here.  For the folks with the long malibu history, were there two malibu companies prior to 2006 (i.e. like and "east" and a "west"), or was Malibu Boats West, Inc. the "whole" company?

Without opening a political portal.  Who writes and interprets laws?  Who rewrites them trying to make better bet usually don’t even take the one replaced off the books?  When you answer those questions, then said group, what is that groups school background?  Betting they started as lawyers.  

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Think of the gas jugs you buy and all the stupid safety features on them. you can't make something idiot proof.. It will be unusable. Also think ....defensive medicine practice.. how many procedures are done and tests performed to lay ground work to protect against lawsuits. 

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I have waited to post in this topic. Being from the nanny state of California, I have some strong opinions on this.
As a kid, I spent many miles riding in the back of one of the notorious Ford Pintos. That problem was corrected rather quickly. That boat is twenty years old. this lawsuit will not change the design of that boat.
All of you guys complainIng  about these boat looking like barges, now you know why. Changes in design have been made to make the boat safer. 
All of you begging for a light low profile ski tug. Well, you can kiss any chance of that GOODBYE!
All because of one inexperienced driver. 
Let’s hope they don’t recall the ones that are already out. According to some people on here, a total recall would be the proper correction to this problem.


Better yet just quit building boats. IE:Ford Pinto. That would be the best  to protect inexperienced  drivers. 

Hope you all have a great Labor Day Weekend!! 
 

  • Like 3
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9 hours ago, Stevo said:

Are they still making 3-wheeler ATV’s?

so if I go break my neck on my buddies, I’m gonna cash in from Honda for sho.

Hasn't everyone accidentally wheelied and wound up under one of those?  For me it was my uncle's big red when I was maybe 10 .  I also pulled myself off it several times by running over my own leg going around corners.  Note to self, it is not a dirt bike.

Edited by oldjeep
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An unfortunate incident happened here at Norris Lake the other evening. Two college aged kids were standing in the bow of a MasterCraft while underway. The boat hit a wake and both were ejected and run over by the boat. One had significant prop vs body injuries, the other was fine. The boat driver picked up a couple of charges, including underage consumption of alcohol. 

Does this mean that we need a 6-foot fence around the bow on all boats so that this cannot happen again? Should alcohol be banned in the United States so this underage driver/drinker cannot commit such an act of idiocy again? How much should MasterCraft have to pay because this kid got hurt?

Or, does it mean that sometimes, people do stupid things, and people get hurt because of it. Nobody needs paid $200M because that boat was being used in a way that it is not designed to be used.

Nobody would think it would be fun to do any of the idiocy people do in a boat when riding in a car. For some reason, people feel bulletproof in a boat, as if nothing bad could possibly happen. It's a shame that people get hurt, or drown due to carbon monoxide poisoning. This is not the fault of the company building the boat. This is the fault of the undereducated. Some people are just too stupid to know the risks they are taking, and occasionally, someone dies because of it. 

Edited by BigCreek
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Just put a sticker in the bow that says people can't sit there while under power - solved (from a legal stand point).

  • Like 1
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1 hour ago, BigCreek said:

An unfortunate incident happened here at Norris Lake the other evening. Two college aged kids were standing in the bow of a MasterCraft while underway. The boat hit a wake and both were ejected and run over by the boat. One had significant prop vs body injuries, the other was fine. The boat driver picked up a couple of charges, including underage consumption of alcohol. 

Does this mean that we need a 6-foot fence around the bow on all boats so that this cannot happen again? Should alcohol be banned in the United States so this underage driver/drinker cannot commit such an act of idiocy again? How much should MasterCraft have to pay because this kid got hurt?

Or, does it mean that sometimes, people do stupid things, and people get hurt because of it. Nobody needs paid $200M because that boat was being used in a way that it is not designed to be used.

Nobody would think it would be fun to do any of the idiocy people do in a boat when riding in a car. For some reason, people feel bulletproof in a boat, as if nothing bad could possibly happen. It's a shame that people get hurt, or drown due to carbon monoxide poisoning. This is not the fault of the company building the boat. This is the fault of the undereducated. Some people are just too stupid to know the risks they are taking, and occasionally, someone dies because of it. 

And Mcdonalds coffee will burn you if you spill it in your lap

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