Punitive damages in door plug blowout possible for Boeing
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Where Boeing made key corporate decisions before a door plug on one of its planes blew out midflight in 2024 could determine whether the company faces additional financial penalties.
Why it matters: A King County judge's recent ruling adds another legal complication for Boeing as it struggles to recover from years of safety failures and fiscal troubles.
Driving the news: King County Superior Court Judge Nikole Hecklinger on Friday rejected Boeing's latest attempt to block punitive damages in a lawsuit brought by 47 plaintiffs.
- Punitive damages are intended to punish misconduct rather than compensate victims for their losses.
- Washington generally doesn't allow punitive damages, but plaintiffs argued that Illinois law could apply because of decisions allegedly made at Boeing's former Chicago headquarters.
Zoom in: Although the aircraft was assembled in Renton, factual disputes over where relevant corporate decisions occurred remain, Hecklinger said in her ruling.
- The ruling didn't establish whether Illinois law applies or whether punitive damages will be awarded.
What they're saying: "Four bolts were left out of a door in Renton. Boeing wants the story to begin and end there," said Mo Hamoudi, an attorney with Seattle-based Stritmatter Law, who represents the plaintiffs.
- But the judge said that where decisions get made is part of where conduct occurs, Hamoudi told Axios.
- "A jury may hear what was decided in Chicago," Hamoudi said.
Boeing declined a request for comment.
Catch up quick: On Jan. 5, 2024, a door plug blew off a Boeing 737 MAX 9 shortly after Alaska Airlines Flight 1282 took off from Portland, leaving a gaping hole in the aircraft.
- The plane returned safely to Portland, but the incident triggered lawsuits, federal investigations and renewed scrutiny of Boeing's manufacturing practices.
- Federal investigators found that four bolts intended to secure the door plug were missing.
- Boeing has already paid Alaska Airlines $160 million in compensation and a $3.1 million FAA fine for safety violations that included problems tied to the blowout.
The blowout followed two deadly 737 MAX crashes in 2018 and 2019 that killed 346 people.
Yes, but: Boeing is showing signs of recovery, delivering 363 737 MAX jets through September — its highest total for the first nine months of any year since the model's 2017 debut, per the Seattle Times.
What we're watching: The trial is scheduled for Feb. 1, though attorneys say the date could shift as discovery continues.