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REI appeals Monika Johnson's case


JasonG

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If you view this without the cloud of emotion, ask yourself:

 

Would any corporation, individual or lawyer not attempt to remove themselves from litigation when the litigant is dead?

It's business and it makes sense wether you are REI, GMC or miniscule inc. While I am apathetic about REI, I am also apathetic about this turn of events, it is perfectly logical and expected

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If you view this without the cloud of emotion, ask yourself:

 

Would any corporation, individual or lawyer not attempt to remove themselves from litigation when the litigant is dead?

It's business and it makes sense wether you are REI, GMC or miniscule inc. While I am apathetic about REI, I am also apathetic about this turn of events, it is perfectly logical and expected

 

It is expected but it is also wrong. Everything was wrong about it from the beginning. If we cater to rei and allow this to go unanswered, then the next victim will receive the same treatment or worse. Maybe you or your kid will buy a bike from rei that fails. It is not about redemption for the past but preventing this from happening again.

 

 

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logic? It's logical for a corporation to act like criminals and use the legal system to attempt to avoid their financial obligations? Expected? Yes. Logical? No. It's a giant foot-bullet that is going to cost them huge amounts of bad PR and upset co-op members, and (hopefully) declining revenue.

 

You guys must be republicans.

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I did not agree with the initial decision by REI and their insurance to fight the claim. The litigants lawyers did not name the off shore manufacturer of the bicycle in their suit. Which makes sense in that REI ordered and named the bicycle, and the manufacturer is hidden away in Red China.

 

I agree with the lawsuit and it's outcome so far, I also agree that it is inevitable that it will be contested now that the plaintiff is deceased.

 

I am not a Republican. Since 1980 I have voted for the following Presidential candidates: Anderson, Mondale, Dukakis, Clinton, Clinton, Gore, Kerry and Obama

 

I voted for Slade in 1980, but now think that was a mistake. I also voted against Dan Evans in his Senatorial campaigns, and I do regret not supporting him.

 

I have always voted for the Democratic gubernatorial candidate with the exception of Dixie in the 1980 primary

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Here's the form letter I got in response. Curious if others received the same...

 

Dear [Layback],

 

Thank you for your email. Monika Johnson was highly regarded in the outdoor community, a member of the REI community, and a dear friend of many REI employees. Please know that we have expressed our condolences to Monika's family and extend them to you, as well.

 

The issues addressed in any lawsuit are often complex and sometimes, as is the case here, have broad impacts beyond just the parties. REI's appeal is not about the amount of money Monika's estate should receive through either a trial or a settlement. Instead, it is about the degree to which responsibility should be shared between a private label seller, like REI, and the manufacturer who designed and made the bike component.

 

The right to have a court or jury consider this question is important to all companies, big or small, that sell products under private labels. REI would have preferred to resolve Ms. Johnson’s case early on, but circumstances beyond our control made this impossible.

 

As we have since REI was founded in 1938, we stand behind our products, and we are committed to acting in accordance with the co-op’s values. We have kept those values front and center throughout the defense of this case, and we will continue to do so through final resolution.

 

Sincerely,

 

Libby Catalinich

Director, REI Corporate Communications

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Sadly funny..like want to puke funny. I was just in the REI here and listened while a female sales person hyped the carbon fiber fork to a potential female buyer. I wanted to stop and shake her.

 

(all my bikes are carbon but I didn't buy them at REI)

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"The issues addressed in any lawsuit are often complex and sometimes, as is the case here, have broad impacts beyond just the parties."

 

The legal issues and ramifications may be complex, but the right thing to do seems pretty clear cut to me. I stopped shopping at REI for major purchases years ago, now I won't be buying so much as a fuel cannister or sunblock there.

 

"The right to have a court or jury consider this question is important to all companies, big or small, that sell products under private labels."

 

I read this as: "we are hoping the courts will find us not responsible for the shit we put our name on."

 

Edited by DPS
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There is a cost associated with buying Cheap. REI outsourced the manufacture of a product that carries their name, built to their specs, and they are responsible. Yes, the pressure to provide things at a discount or meet a buyer's offered price leads to corners being cut in the factory, and China is not the only poorly regulated country that happens in. REI wanted to sell a carbon fork for less than the competition, and Monika's injury was part of the collateral damage associated with a national obsession with price. I'm sure REI has a budget line item to cover settlement costs for product failures of cheap goods, in the same way the auto industry decides its cheaper to pay damages for defective manufacturing than to actually retool/redesign/recall the flawed product.

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Here's an interesting post from NWH that I'm going to quote and react to...

 

This might be off topic but remember, some REI employees and all the REI executives are eligible for pay bonuses. In my opinion, ever since the REI pay bonus plan was initiated, REI has never been as kind, friendly, knowledgeable, and helpful as the "old REI". Now the management has a major incentive to make a profit as their bonus is related to the REI profit.

 

REI Executive Compensation Elements and Target Compensation Levels

REI compensates its executive officers by providing 4 key elements of pay. These are: (1) base pay, (2) an annual bonus linked to individual performance and the company's annual results, (3) a long-term incentive opportunity linked to performance on two key measurements of success, return on capital and revenue growth, over multi-year periods, and (4) a highly competitive retirement plan. REl's retirement plan applies to all employees and has two components, a 5% guaranteed contribution and up to an additional 10% in profit sharing based on co-op performance. Executive perquisites are limited to two allowances, one for a car and one for a communication device.

 

I think that Mikey nailed the reasons for what I'd call REI's downfall over the last 5-6 years arriving where we are today with the Monika case. Once you link profit to compensation you lose sight of the people you serve and align yourself with the money you CAN MAKE by focusing on the biggest target audience with the largest margin. Another year goes by and you take another step away from your mission in order to advance the bottom line and increase revenue. I'm very disappointed in the direction that REI has taken and what they've become.

 

Folks on the east coast will appreciate what EMS (Eastern Mountain Sports) has become. Once a retailer of only the finest outdoor gear, about 10 years ago they took a weird turn and became a retail clothing store with some outdoor gear.

 

I'll never forget the first time I came to WA in 2001 and walked into the Flagship store. It was like I had landed in the center of the climbing universe. I used to tell people that every trip to the Cascades begins and ends at REI. I thought the contrast between REI and EMS was so awesome.

 

I think the advent of the REI corporate bonus is what has shaped them into an EMS "me-too". Monika's case is just another symptom of this. It's very disappointing...

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I bet it is not REI who is deciding how to defend this suit but their insurance company and, futhermore, I bet that any REI executive who acknowledged the company’s responsibility for the accident would be open to a lawsuit from the company’s shareholders (though, because it is a "coop", maybe not?).

 

This is our system. It creates its distortions, and one of them is that there is no way a defendant or potential defendant is likely to acknowledge fault or even say they are sorry. I think insurance defense is often a sleasy business, but the bottom line is that we have a legal system whereby Monika's injury is costing REI a lot of money and there is a direct incentive for them to try to prevent defective products from being sold in their store, even if they are selling something that is not their own brand.

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