Tesla Model 3 Accident in Taiwan: Lawsuit Filed by Jaden Precision Chairman and Wife

The chairman of Jaden Precision, a major supplier to TSMC and ASML, and his wife are suing Tesla following an accident involving a Model 3, alleging a vehicle defect and seeking compensation.

The chairman of Jaden Precision (家登精密), a publicly listed company and major supplier to TSMC (台積電) and ASML, along with his wife, are pursuing legal action against Tesla (特斯拉) in Taiwan, alleging that a Model 3 vehicle they purchased experienced a sudden acceleration incident, resulting in injuries. The couple claims the vehicle possessed a defect, prompting them to file a civil lawsuit seeking damages.

The Shilin District Court held a hearing on the case on the 23rd. Representing the plaintiffs was Mrs. Luo (羅女), the wife of the chairman, via her attorney. The attorney argued that the accident was caused by a system malfunction within the Tesla vehicle, and is requesting a refund for the vehicle's purchase price, alongside compensation for mental distress and punitive damages. Tesla, as the defendant, has requested that the court dismiss the plaintiffs' claims entirely.

The couple, Mr. and Mrs. Qiu (邱銘乾), purchased a top-of-the-line Tesla Model 3 Performance model in February 2022, taking delivery on March 8th of the same year. The vehicle cost NT$2.48 million. Approximately seven months later, on October 15, 2022, Mrs. Qiu was driving the car in the underground parking garage of the Taipei Railway Station when the vehicle reportedly accelerated unexpectedly and crashed into a wall. The impact caused severe damage to the front of the car and deployed the airbags, resulting in injuries to both Mr. and Mrs. Qiu.

Following the incident, the couple attempted to reach a resolution with Tesla to address the alleged system issue and seek appropriate compensation, but an agreement couldn't be reached. This led to Mrs. Luo filing a civil lawsuit, asserting that the vehicle had a system defect and requesting a refund for the purchase price and mental distress compensation.

During the court hearing, neither the plaintiffs nor the defendant were present; both parties were represented by their respective attorneys. The plaintiff's attorney presented a primary claim, requesting that Tesla refund the purchase price to the plaintiffs or to Juten Technology (鉅唐科技), an additional corporate plaintiff, and compensation to Mrs. Luo personally. The plaintiff's attorney also requested interest.

In addition, a secondary claim was presented, seeking a refund of NT$1.928 million for the vehicle, with interest calculated at an annual rate of 5% from March 23, 2023 (the day after the lawsuit was served) until the date of payment, while maintaining the mental distress compensation at NT$1 million. The plaintiffs also expressed their willingness to provide collateral and requested the court to grant preliminary execution.

The judge questioned the legal basis for the interest claim, and the plaintiff's attorney cited Article 259, Paragraph 2, of the Civil Code (民法), which addresses "restoration of the original state." The judge also inquired whether the defendant's attorney had any objections to the starting date of the interest calculation, and the attorney responded with, "No objection."

The plaintiffs argued that the case was not a typical traffic accident but a result of a vehicle system defect, leading to personal injury and mental suffering. Thus, they requested damages and punitive compensation. The plaintiff's attorney highlighted that Mrs. Luo was driving at the time of the accident, with Mr. Qiu in the passenger seat, both of whom could testify. However, the defendant's attorney reiterated that the accident was caused by the plaintiff accidentally pressing the accelerator, denying the possibility of a system malfunction.

The judge summarized the points of contention and confirmed the undisputed facts, including that Mrs. Luo (Juten Technology) ordered the vehicle on February 8, 2022, and took delivery on March 8, 2022, and that the accident occurred on October 15, 2022, when Mrs. Luo was driving the vehicle in the underground parking lot of the Taipei Railway Station, resulting in injuries to her chest and left arm. The court has scheduled a continuation of the oral argument for August 6. The decision on whether to summon witnesses and conduct an investigation will depend on the progress of the proceedings.

If the court supports the plaintiff's primary claim, the total compensation requested by Mrs. Luo amounts to NT$3.484 million, including the vehicle purchase price paid by the corporate entity Juten Technology and NT$1 million in consolation money for the injuries and mental suffering of Mrs. Luo. This amount does not include interest, and the actual amount of damages claimed could further increase if interest is included. The plaintiffs have also requested the court to grant preliminary execution and are prepared to provide collateral.

Regarding the claim for mental distress compensation, the plaintiffs are seeking punitive damages under Article 51 of the Consumer Protection Act (消費者保護法), arguing that Tesla failed to fulfill its product safety obligations, resulting in gross negligence and personal injury. The court will decide whether the entire or a portion of the NT$1 million consolation money should be considered punitive damages. The final amount will be determined at the discretion of the court.