Former Consultant Sues, GM Potential Liability $12 Billion

[56 Starchief]

06.12.06

money.cnn.com

Fresh hope for an inventor


by Patricia B. Gray, FSB Magazine
June 9, 2006: 2:24 PM EDT


(FORTUNE Small Business Magazine) - Who knew that a pinhole could be worth billions? In October 2003 we wrote about inventor Jack Evans, who was in a court battle with General Motors ("Fast and Furious"). Evans claimed that GM stole his design for an engine cooling system when he worked as a consultant for the company in the 1980s.
He filed a $600 million lawsuit in 1994, accusing GM (Research) of using his design - built around a vent no larger than a pinhole - in millions of cars and trucks. Although GM admitted that an employee had forged evidence to support its claim that it had developed the cooling system independently, a Connecticut judge found in favor of the automaker.

But in late March the Connecticut Supreme Court overturned that decision, ruling that the judge should have allowed the inventor to plead his case to a jury. The second trial should begin by the end of the year, and the stakes are high: GM's law firm says the automaker's potential liability could be as high as $12 billion.

[paul8488]

He'll need some pretty convincing evidence. Maybe he has it, but he's certainly got a fight ahead of him. If he does win, maybe he'll use the money to buy GM stock.

[goochman]

I read an article on this story - it had to do with the reverse cooling in the Gen III v8 (when the last new Camaro came out) - anyhow, its an interesting read that this guy was helping GM with one problem when he discovered a fix to GM's cooling problem with the Gen III.

He was told GM couldnt look at his 'fix' that day but would the next day and asked him to leave overnight. Suspicious he bolted down the hood of the vehicle and the next day someone obviously opened it up and looked at the engine.

2 weeks later GM claimed to fix their cooling issue using the design he came up with.

He knew going public would ruin his chances of ever consulting for a big automaker again but GM clearly ripped this guy off.

[Havasavana]

Originally Posted by paul8488

He'll need some pretty convincing evidence. Maybe he has it, but he's certainly got a fight ahead of him. If he does win, maybe he'll use the money to buy GM stock.

He's got a tough job with this, but from his company's site at least, his case seems strong.

http://www.evansvsgm.com/

[CobaltSScrazy]

Originally Posted by goochman

I read an article on this story - it had to do with the reverse cooling in the Gen III v8 (when the last new Camero came out) - anyhow, its an interesting read that this guy was helping GM with one problem when he discovered a fix to GM's cooling problem with the Gen III.

He was told GM couldnt look at his 'fix' that day but would the next day and asked him to leave overnight. Suspicious he bolted down the hood of the vehicle and the next day someone obviously opened it up and looked at the engine.

2 weeks later GM claimed to fix their cooling issue using the design he came up with.

He knew going public would ruin his chances of ever consulting for a big automaker again but GM clearly ripped this guy off.

no one should rip anyone off, but think how many ppl have done that to gm, cough uaw "brothers" cough...GM doens't need this, what a jerk?

[Vintalage]

Originally Posted by CobaltSScrazy

no one should rip anyone off, but think how many ppl have done that to gm, cough uaw "brothers" cough...GM doens't need this, what a jerk?

He's a jerk because he's fighting the automaker that allegedly stole his design?

[chevydlrmn]

Originally Posted by Vintalage

He's a jerk because he's fighting the automaker that allegedly stole his design?

If it were me in his shoes, I'd be irate as well. I just hope it is not true.

[VibenPontiac]

This is old news. Got to question why Forbes are running a story that was picked up and posted here on the boards 2 months ago.

[Ultra Magnus]

If GM, in fact, did steal Mr Evans ideas, why didnt they just hire this guy on? Also how dumb do you have to be to try to falsify documents. This isnt the 1800s! Am I a GM supporter, of course; Is all this dumb, absolutely. They could have just paid the man in the first place.

[vxl]

Was he employed by GM? If so, surely any designs he developed would belong to GM.

[CobaltSScrazy]

my family has numerous patents on GM powertrain designs that have been incorporated in hundreds of millions of engines over the past 25 years...if he was employed by gm while designing this engine cooling system or w/e it was, then its GM's property. my family can't go out and sell the designs they came up with. thats just how life works.

[vanshmack]

Originally Posted by goochman

I read an article on this story - it had to do with the reverse cooling in the Gen III v8 (when the last new Camero came out) - anyhow, its an interesting read that this guy was helping GM with one problem when he discovered a fix to GM's cooling problem with the Gen III.

Just to clarify, I think the author meant to say "Gen II" V8. Those were the LT1's that appeared on the 1992 base Vette and 4th-gen F-bodies up to 1997. Those engines had the sprocket-driven waterpump with reverse-flow cooling that cooled the cylinder heads first, then the block. This was done so GM could run higher compression without knock. This was discontinued on the Gen III motors (LS1 & LS6, truck Vortecs) in 1997. Apparently, reverse-flow cooling caused hot spots in the block which led to other problems.

Just an FYI!

[goblue1999]

Originally Posted by goochman

I read an article on this story - it had to do with the reverse cooling in the Gen III v8 (when the last new Camero came out) - anyhow, its an interesting read that this guy was helping GM with one problem when he discovered a fix to GM's cooling problem with the Gen III.

He was told GM couldnt look at his 'fix' that day but would the next day and asked him to leave overnight. Suspicious he bolted down the hood of the vehicle and the next day someone obviously opened it up and looked at the engine.

2 weeks later GM claimed to fix their cooling issue using the design he came up with.

He knew going public would ruin his chances of ever consulting for a big automaker again but GM clearly ripped this guy off.

it is not as cut and dried as you state.

what will be argued in court, is whether or not he had already been compensated for his input. He is not an independent inventor who came to GM with an idea, which they then took.....he was being paid handsomely to solve GM cooling problems, and supposedly work that he did on GM property, with GM equipment, on GM vehicles, was then used by GM.

this sounds more like an employee's right (lack thereof) to intellectual property developed while on GM's payroll. what you develop on GM time, using GM resources, is GM's.

he'll get his day in court, and my guess is, he'll lose.

[racy]

Originally Posted by CobaltSScrazy

no one should rip anyone off, but think how many ppl have done that to gm, cough uaw "brothers" cough...GM doens't need this, what a jerk?

Actually, there's a good story behind this. This fella is in no way a jerk, con-artist or anything else.

He had a successful business for years, contracting work for GM. In addition to ripping off his idea, they still haven't paid him for several years of work he did for them before this fiasco.

It all really started many years ago, because he simply wanted GM to pay their bill. GM flat out blew him off. Then GM pulled this stunt.

No, GM did wrong - very wrong here. People at GM should lose their jobs over this one, but they're probably already long gone from GM by now.

Do your own research. This guy is legitimate and GM has completely screwed him over. No one deserves this. He has lost his business and family over this thing.

[Havasavana]

He was not a GM employee nor did GM hire him to do what his invention did. GM asked him to demo his invention and he insisted it be a 'black box' demo; i.e.; GM not know what was inside nor how his invention did what it did. GM agreed and the test was set up. Part way through the test, GM apparently said the test had to be suspended overnight. Evans was concerned that GM might look inside his system, and this is evidently what happened during the night. GM employees, designated by GM to act for them in the trial, lied and falsified documents and material. Evans was denied a jury trial which he will now get. This stuff is all from Evan's web site, so might be slanted. But the part about lying and falsifying stuff in court seems to be from the court, so I'd think GM is going to hurt as they should. Too bad this thing was done the way it was, if it's true, and now GM might be in real trouble. This guy is not some flake who's taking a hail mary shot at hitting it big. He and his company seem to have a history of solid results.

This link doesn't show much until you click "Introduction" on the top left ofthe page.

http://www.evansvsgm.com/