While red light camera firms are facing significant legal peril as vehicle owners in California and Florida are fighting citations in court through class action lawsuits, the stakes are even higher when the companies themselves battle one another in the courtroom. The US Court of Appeals for the Ninth Circuit is now reviewing a number of issues brought in the suit filed by American Traffic Solutions (ATS) against its Australian rival, Redflex Traffic Systems.
Looking for proof that politics are an overriding concern for GM during its forthcoming IPO: look no further than a report by Reuters which claims that
GM’s roadshow is set to begin on Nov. 3 and will last two weeks, the sources said. The IPO is expected to price on Nov. 17 and debut on Nov. 18.
Now why would GM wait until the day after midterm elections to file? Well, it could be so GM has time to file 3rd Quarter financial data before offering shares to the public, but GM’s CFO has already warned that 3rd Quarter results will be worse than results from the first half of the year. In other words, waiting to file is likely to materially hurt the IPO (and taxpayers’ chance of payback). But if GM launches its roadshow the day after elections, it won’t turn the midterm election into a referendum on the auto bailout, a situation that would surely exacerbate the already-strong anti-incumbent trend in American politics. And clearly protecting craven pols is far more important than maximizing the return on “investment” for taxpayers, right?
A team of experienced class action lawyers is taking on California’s red light camera industry, and photo enforcement companies are expressing unease. Last month, the law firm of Pearson Simon Warshaw and Penny, LLP filed suit in San Mateo County Superior Court arguing that tickets issued throughout the Golden State since January 1, 2004 should be refunded where the photo enforcement contracts violated a state law mandating flat-rate compensation to companies like Redflex Traffic Systems. Redflex referred to the case as a particular business risk in an August 25 filing with the Australian Securities Exchange.
An Ontario, Canada judge in July faulted the Ontario Provincial Police (OPP) and Attorney General of Ontario for attempting to confiscate $46,078 contrary to the law. Officer Paul Barkley had pulled over a 2000 Mazda traveling on Highway 401 near Morrisburg just after midnight on October 16, 2009. Barkley had assumed the driver, Remus Petran, might have been drunk because he was driving below the speed limit. After speaking to Petran, who was sober, Barkley decided to search the vehicle.
In the Mazda’s trunk, Barkley found a gym bag containing CDN $74,980. Petran explained that he worked in construction and was paid in cash. For this, Petran was arrested for possession of property obtained by crime and his car towed away. After police found no evidence of a crime, Petran was unconditionally released with his car and without any charges filed — but police kept the cash.
The California state Senate last week gave preliminary approval to legislation giving local governments the green light to install automated ticketing machines on street sweepers to generate parking tickets. The measure, introduced by state Assemblyman Steven C. Bradford (D-Gardena), passed in the lower chamber in April by a 49 to 24 vote. It would go to Governor Arnold Schwarzenegger (R) upon a final vote by the Senate and an Assembly vote to approving the upper chamber’s amendments. On Friday, the full legislature sent a related measure cracking down on municipalities that have been using an unauthorized civil fine system to bypass state traffic laws for speeding and red light camera tickets.
The EPA, working with the Departments of Transportation and Energy, has come up with two potential fuel economy labels, aimed at addressing the challenges posed by new plug-in, and fuel cell vehicles. The EPA’s Gina McCarthy gives an overview on the two label styles in the video above, but the main difference appears to be that one label would give cars letter grades (from A+ to D) on their fuel efficiency and greenhouse as emissions, while the other… wouldn’t. Read more about the first label (with letter grades) here, and compare it to the second label here. Let us know what you think, and if you feel strongly enough, send your comments to the EPA here.
The California state Senate on Wednesday voted 63-11 to give final approval to a measure that will cut the fine for the most common type of red light camera violation in half. Under existing law, motorists who make safe, rolling right-hand turns at monitored intersections may receive a $500 bill in the mail from a private company operating on behalf of a municipality. In the past few years, the “California stop” at some locations have begun to account for up to 98 percent of automated ticketing machine citations.
Edmunds is tracking an $1,800 average increase in the price of used cars, as new-car sales have faltered with the shaky economy. But the increase in prices isn’t solely due to Americans tightening their belts and buying used instead of new. The biggest price increases by nameplate appear to be for large SUVs and vans like the Cadillac Escalade, Chevy Suburban, Dodge Grand Caravan, BMW X5 and Acura MDX. Edmunds senior analyst Joe Spina explains
So many economic factors affect automobile sales and prices. It’s believed that the program delayed purchases prior to the program and also pulled sales forward while in place. The program also eliminated inventory of older vehicles that were traded and then scrapped… Now, those who need trucks and large SUVs are buying them and in many cases are turning to used vehicles as a way to save money. Prices are high because this demand comes at a time when inventory is low as a result of the current shortage of lease returns and trade-ins for vehicles of this type.
Edmunds’ “Large SUV” segment shows prices up by nearly $7k per vehicle (over July 2009), compared to increases of less than $500 per vehicle for midsize and compact cars over the same period. Gas prices, meanwhile, are nearly unchanged from July of last year. Clearly something is affecting the price of used SUVs… if it’s not Cash-For-Clunkers, what is it?
Opposition to the Ethanol industry’s push to allow gasoline blends with up to 15 percent ethanol is coming together this week, as a massive coalition of interest groups calls for congressional hearings on the EPA’s pending E15 decision [via PRNewswire]. The Alliance of Automobile Manufacturers and Association of International Automobile Manufacturers joined 37 other groups, ranging from the National Resources Defense Council to the Outdoor Power Equipment and Engine Service Association, in calling on congressional energy committees to take up the issue.
Despite collecting A$137 million in revenue from automated traffic ticketing, the Australian photo enforcement giant Redflex Traffic Systems yesterday announced its net profit before tax had fallen to a mere $442,000 for the first half of 2010. Redflex remains the number one player in the US market with US motorists providing 79 percent of the company’s ticket revenue. Redflex management, however, blamed recent losses primarily on “considerable public opposition” to photo radar and red light cameras in the US.
The mayor of Ridgeland, South Carolina is taking a stand in defiance of a state law that bans the use of speed cameras anywhere in the state (view law). Mayor Gary W. Hodges earlier this month began issuing speeding tickets based on evidence provided by an automated traffic system set up in a recreational vehicle parked on Interstate 95 despite warnings from lawmakers.
“The program is up and running,” Hodges announced at an August 12 meeting. “There are those at various levels who think this is a bad thing — I for the life of me can’t figure out why people have a problem with this.”
Under court order, Redwood City, California was forced to admit that the red light camera installed at Whipple Avenue and Veterans Boulevard in March 2008 have done absolutely nothing to reduce traffic collisions. San Mateo County Superior Court Judge Clifford V. Cretan instructed the city council to respond to a civil grand jury report from June that blasted municipal programs throughout the county that raised $13.8 million from ticketing despite the lack of evidence of any safety benefit (read report).
After numerous delays and a lawsuit by Mahindra’s US distributor, the Indian firm’s diesel-powered compact pickups have been approved by the EPA, reports the WSJ [sub].
(Read More…)
After a year of use, red light cameras have failed to deliver the promised safety benefits in Baytown, Texas. The Houston suburb activated the majority of its cameras on July 13, 2008. Since then, the number of accidents at eight camera locations has increased 40 percent, contrary to predictions from city officials. The increase in accidents has not been in minor “fender benders,” as is frequently claimed by photo ticketing advocates. Rather, the number of collisions resulting in an injury jumped 75 percent. Rear end collisions increased 39 percent. Results from comprehensive, independent studies elsewhere in the country have yielded similar results.
A San Diego, California Superior Court judge on Monday found elements of typical red light camera court evidence packages to be inadmissible hearsay. Eight consolidated cases were dismissed by Commissioner Karen A. Riley after she considered a motion to exclude evidence generated by automated ticketing vendor American Traffic Solutions (ATS). In light of the recent Melendez-Diaz v. Massachusetts ruling by the US Supreme Court (view ruling), Riley found the accused had a right to confront ATS witnesses.
Recent Comments