Legal Implications Arising Out Of Autonomous

Vehicles & Creative Ways to Deal With Them

Aaron Mutnick – Shelter Insurance Company (Columbia, MO) Brad Nahrstadt – Lipe Lyons Murphy Nahrstadt & Pontikis Ltd. (Chicago, IL)

Stacey Gorny - Lewis Johs Avallone Aviles (Islandia, NY) Tom Paschos – Thomas Paschos & Associates, P.C. (Haddonfield, NJ)

Product Liability Issues and Autonomous Vehicles

Bradley C. NahrstadtLipe Lyons Murphy Nahrstadt & Pontikis Ltd.

230 W. Monroe, Suite 2260Chicago, Illinois 60606

Driverless Cars• As we have already heard

today, autonomous vehicles will become widespread on our roadways.

• Some have theorized that within the next two decades there will be more autonomous vehicles in operation than “regular” vehicles.

• One of the claimed benefits of autonomous vehicles is that they are safer and more reliable than traditional vehicles that are subject to human error.

• Although they are safer, they are not infallible.

• On May 7, 2016, the driver of a Tesla Model S was killed when a tractor-trailer turned left in front of him. The car was in autopilot mode at the time of the crash.

• In March of 2018, a Tesla ModelX collided with a highwaymedian in CA. The driver died inthe crash. The car was inautopilot mode at the time ofthe crash.

• On March 18, 2018 an Uber car,a Volvo XC90 sport utility vehicleoutfitted with the company’ssensing system, was inautonomous mode with ahuman safety driver behind thewheel when it struck and killed apedestrian in Tempe, AZ.

© Associated Press

• In the “good old days”, when two cars that were being driven by individuals collided, a negligence action was typically brought against the driver who caused the accident.

• Driverless cars are going to shift the liability from a negligent driver toward manufacturers, software developers, data providers and component suppliers.

• Still Have to Deal with “traditional” claims

• Mechanical or physical defects in various systems or safety equipment (materials are not strong or thick enough; excessively high center of gravity)

• Defects in electrical components or systems (other than sensor or control systems for autonomous driving) such as use of the wrong kinds of components, problems in the performance of the components or lack of durability of the components

• Software defects (defective code, etc.) relating to systems other than sensors or controls for autonomous driving

Claims Unique to Autonomous Vehicles

A. Control Systems

- Typically consist of LIDAR arrays and sensors which the vehicle uses to “see” its surroundings

Potential Claims• Manufacturing defects

- Weak mounting brackets for LIDAR sensors- Defects in electrical components for sensors or control systems- Automatic braking system contains a glitch

• Design defects-Sensor placement that results in “blind spots”

• Warnings-Lack of a clear explanation of the conditions in which the LIDAR may fail-Failure to warn owner/operator to not disable sensors

B. Software

• Design defects

-Designs that depend on inadequate data from sensors, including insufficient amount, inaccuracy, deficient precision or inadequate speed of data input

- Inaccurate pattern recognition, such as the autonomous vehicle failing to be able to recognize a pedestrian in the road or other upcoming obstacles and hazards

- Designs that fail to perform safe ordinary maneuvers, such as turns, lane-keeping, distance-keeping and merging

-Inadequate pattern recognition

- Unpredictable changes in speed or direction

- Deficient collision avoidance algorithms

- Defects arising from inadequate human-computer coordination (e.g., if an AV switches between autonomous and manual mode, the AV must alert the driver before switching to manual mode and transition to human control)

• Failure to warn: software upgrades

- If malfunction in the software caused the crash, can the plaintiff bring a strict products liability suit since software may not be a product?

C. Data Security

• Becoming an issue with “traditional” vehicles

• In 2015, the makers of the Jeep Cherokee were forced to recall 1.4 million vehicles after US researchers demonstrated they could remotely hijack the car’s system over the Internet.

• There will definitely be claims if the manufacturer/software provider/operator is unable to prevent hacking

Other Potential Claims?

– Misrepresentation• Manufacturer advertises that a human driver will “very rarely” need to take

over control of the vehicle• If the driver has to take over every 3 to 4 minutes, he or she could bring a

claim for misrepresentation

– Breach of Warranty• Manufacturer advertises that its autonomous vehicle parallel parks itself just

as well at night as during the day• If that turns out to be untrue the owner could bring a breach of express

warranty claim

Trucking and Automation:Author:

Rebecca K. Devlin, Esq.Presented by:

Stacey E. Gorny, Esq.

Rebecca K. Devlin, Esq. is a member of the Transportation Law Group at Lewis Johs Avallone Aviles, LLP, focusing on the defense of transportation and trucking clients in all transportation matters.

• Trials, mediations and arbitrations• Trucking accident investigations, particularly during the

critical early hours of investigation• Risk management counseling• Insurance coverage analysis• Environmental claims• Settlement and litigation avoidance• Regulatory compliance and licensingLocation: Islandia, NY

(631) 755-0101rkdevlin@lewisjohs.com

Author

Stacey E. Gorny, Esq. is a partner in the firm, specializing in the defense of all aspects of general liability including defense of transportation and trucking clients.

• Trials and mediations• Trucking accidents and investigations• Defense of catastrophic injury• Property damage• Negotiated settlements• Complex litigation and commercial matters

Location: Islandia, NY(631) 755-0101segorny@lewisjohs.com

Presenter

Self-Driving Trucks– Forefront of the technology – Sensors and software to control, navigate

and drive – Automated v. Autonomous

Overview

• Address driver shortages • Improve safety • Lessen traffic congestion • Improve fuel efficiency and decrease

emissions • Increase profitability

Why Self Driving Trucks

1. Driver Assist Evolution2. Transfer Hub Model3. Teleoperation4. Platooning5. Private Site

Concepts for Developing Self-Driving Trucks

Latest Safety Systems:- Collision mitigation- Adaptive cruise control- Lane-departure warnings and

lane change assistance

New Technology:- Automated steering functions

like lane-keep assist and active lane management

- Advanced Driver Assist Systems (ADAS) like Autopilot

Driver Assist Evolution

• Limits Self-Driving Trucks to Major Freeways• Commercial drivers from factories and warehouses transfer station• Trailers transferred to automated trucks freeway• Automated trucks on freeway exit to exit transfer station

Transfer Hub Model

• Computer handles the bulk of the highway driving

• Drivers behind the scenes– Observe and monitor– Take control if necessary

Teleoperation

• Multiple trucks drive in unison • A single driver would operate the lead truck while one or more unmanned

trucks automatically follow with automated steering capability.• A driver in each vehicle to steer but braking and acceleration systems will

be automated while the platoon is active.

Platooning

Automated from Point A Point B

Mining– Australia: Self driving trucks operating in mines on private

sites

Agriculture– Brazil: Self driving trucks used for harvesting sugar cane

Private Site

• Trucks operating as part of a transfer-hub model also could platoon on the highway.

• Truck driver remains indispensable, although his/her role may shift.

Working Together

• Human error heightened by advancements in technology due to inattention and distraction from technology

– Greater responsibility on driver to be knowledgeable of systems

– Greater responsibility on employer to train drivers • Malfunctions related to coding, operating systems and software

– Impleaders of automakers, manufacturers and software developers

• Connected Vehicle (CV) technologies focus on vehicle-to vehicle communications by synchronizing the movements of nearby vehicles.

– Network and cyber security related concerns • Uniform regulation and legislation needed

Legal Implications

• Self-driving trucks will be able to drive themselves on long straightaways such as freeways before we see them in cities and towns.

• Human drivers are going to be active participates in “driverless” technology for the near future.

• There needs to be federal legislation instead of patchwork of state regulations.

Conclusion

THANK YOURebecca K. Devlin, Esq.

&Stacey E. Gorny, Esq.

631.755.0101

Aaron Mutnick

Shelter InsuranceColumbia, Missouri

www.paschoslaw.com

Autonomous Driving Vehicles –Insurance Coverage Implications

50 minutes each day that had previously been dedicated to driving.