A Florida appeals court handed Tesla a significant win on Wednesday, February 26, 2025, blocking the estate of a man killed in a 2019 crash from seeking punitive damages against the electric-car giant.
The 4th District Court of Appeal’s three-judge panel overturned a Palm Beach County judge’s ruling, sparing Tesla from potentially hefty financial penalties in a lawsuit tied to its Autopilot system.
The case stems from the death of Jeremy Banner, who was driving his Tesla Model 3 on a Palm Beach County road when it slammed into a semi-truck trailer. According to court documents, the truck driver ran a stop sign, crossing the highway as Banner approached.
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With Autopilot engaged, the Tesla failed to stop, striking the trailer’s midsection. The impact sheared off the car’s roof, killing Banner instantly.
Banner’s estate sued Tesla, alleging strict liability and negligence, and later pushed to add punitive damages—claiming the Model 3’s “full self-driving capability package” was dangerously overhyped. The lawsuit argued Tesla marketed the car as “state-of-the-art” but skimped on crash avoidance tech, leaving drivers like Banner vulnerable.
But the appeals court saw it differently. In a unanimous opinion penned by Judge Jeffrey Kuntz and joined by Judges Spencer Levine and Alan Forst, the panel ruled the estate didn’t clear the high bar for punitive damages. “The legal standard is whether Tesla engaged in gross negligence so egregious that it is equivalent to criminal manslaughter,” Kuntz wrote.
The court found no evidence Tesla knew—or should’ve known—its Autopilot features were likely to kill or maim. Instead, they pointed to the system’s compliance with industry and regulatory standards, calling it “state-of-the-art” as advertised.
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The decision nixes a lower court’s green light for punitive damages, a rare add-on meant to punish and deter reckless conduct. While the estate’s core claims against Tesla can proceed, Wednesday’s ruling caps the financial stakes, shielding the company from the kind of blockbuster penalties that could’ve loomed over a jury trial.
The crash, one of several high-profile Autopilot incidents, has fueled debate over self-driving tech’s readiness—and Tesla’s bold marketing.
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