AUSTIN, Texas, July 9 -- Chrysler Group has filed a
lawsuit against three Texas lawyers who fabricated a fraudulent product
liability lawsuit involving evidence tampering and attempted bribery. The
company also is filing a grievance with the Texas Bar saying lawyers, Robert
Kugle, Robert "Trey" Wilson III and Andrew Toscano of the former Kugle Law
Firm of San Antonio, should no longer be permitted to practice law.
The lawsuit accuses the three of "multiple crimes, including fraud,
obstruction of justice, evidence tampering, witness tampering, perjury,
subornation of perjury, extortion, bribery and conspiracy" in their "attempt
to extort settlement" in a lawsuit seeking $2 billion from Chrysler Group. A
Texas appellate court has described their conduct as "an egregious example of
the worst kind of abuse of the judicial system."

"This is an appalling example of how the perverse incentives of the
American civil justice system can tempt lawyers to play fast and loose with
evidence in an effort to hit the litigation lottery," said Steve Hantler,
Chrysler Group Assistant General Counsel. "These individuals concocted a $2
billion strike-it-rich scheme, and despite their outrageous actions, two of
them are still practicing law. If this egregious conduct is allowed to stand,
it will threaten the credibility of the legal system and raise serious
questions about the legal community's ability to police itself."
Today's actions by Chrysler Group followed its discovery that an
investigator hired by the Kugle Law Firm offered bribes and tried to influence
witnesses, including police officers and a paramedic, during preparations for
the Fabila v. DaimlerChryslerCorporation case. The original product liability
lawsuit followed a fatal rollover accident in Mexico in 1996. In the hours
after the accident, the driver's wife told officials that her husband had
fallen asleep while driving and the car drifted toward oncoming traffic.
After the lawsuit was filed, the plaintiffs changed their story and
alleged that a steering defect in their 1995 Dodge Neon prompted the accident.
"The Kugle Firm then conspired to profit from this family's unfortunate
tragedy," said Hantler.

After the accident, Tom Persing, an expert hired by the Kugle Law Firm,
inspected the vehicle and took photos showing that the steering system was
intact and functional. However, when the Kugle Law Firm made the vehicle
available to Chrysler Group experts for inspection, the steering decoupler was
broken. The Kugle Law Firm never disclosed the Persing inspection and
photographs. An anonymous letter sent to Chrysler Group's attorneys at Clark,
Thomas & Winters in Austin revealed Persing's earlier inspection and the
existence of the photos.

Shortly before the photos were obtained and the fraud was exposed, Wilson
admitted to Persing that "we were running a bluff and they called our hand."
In depositions, police and emergency personnel testified under oath that
they had been contacted by an investigator for the Kugle Law Firm asking them
to change their testimony. They turned down offers of money and free travel
to "forget" that the wife had acknowledged her husband falling asleep at the
wheel. The paramedic testified that an investigator for the Kugle Law Firm
had tried to "intimidate him" with surveillance photos of himself and his
family. After a week-long hearing to investigate those actions, the judge
dismissed the case against Chrysler Group, sanctioned the attorneys for almost
$1 million and referred the attorneys to the State Bar of Texas for
disciplinary action.

Trey Wilson and Andrew Toscano still practice law in the same courthouse
in which they were sanctioned. Robert Kugle relocated to Mexico.
Chrysler Group's lawsuit is seeking "actual damages in the form of
reasonable attorneys' fees, expenses, lost employee time and other losses
incurred in defense of the Fabila lawsuit" and unspecified punitive damages.