SO A LOT TO DIG INTO.
DAVID: WHAT A MESS.
JACKIE, THANK YOU VERY MUCH.
BRINGING IN FOX NEWS SENIOR
JUDICIAL ANALYST, JUDGE ANDREW
NAPOLITANO.
SO JUDGE, DOES THIS LEAVE BOEING
OPEN TO CRIMINAL NEGLIGENCE?
>> WELL, THE REPORTING OF OUR
COLLEAGUES AT THE "WALL STREET
JOURNAL" WHICH HAS BEEN
EXTRAORDINARY, WOULD INDICATE
YES.
BOEING OF COURSE, AS JACKIE SO
NICELY REPORTED, HAS COME BACK
WITH SORT OF A FEROCIOUS
RESPONSE, AS ONE WOULD EXPECT.
SO IF THE REPORTING OF THE "WALL
STREET JOURNAL" IS CORRECT, IF
BOEING KNEW OF DEFECTS AND
DIDN'T REPORT THEM TO THE FAA
AND DIDN'T TELL THEIR CUSTOMERS
WHO BOUGHT THESE JETS FROM THEM,
THEN BOEING IS EXPOSED TO CIVIL
LIABILITY AND POTENTIAL CRIMINAL
LIABILITY.
WE WILL START WITH THE MORE
INCENDIARY.
THE POTENTIAL CRIMINAL LIABILITY
IS THIS.
YOU HAVE A DUTY TO REPORT
DEFECTS.
YOU FAIL TO MAKE THE REPORT AND
AS A RESULT, INNOCENT HUMAN
BEINGS DIED.
WHAT IS THAT CALLED?
THAT'S CALLED CRIMINALLY
NEGLIGENT HOMICIDE.
THAT WOULD MEAN THAT A DECISION
WAS MADE BY SOME PERSON NOT TO
REPORT SOMETHING THAT THE LAW
REQUIRES BOEING TO REPORT.
THE POTENTIAL CIVIL LIABILITY IS
JUST AS CATASTROPHIC FOR BOEING,
BECAUSE IF PLAINTIFFS' LAWYERS
CAN SHOW THAT BOEING BY SILENCE
DECEIVED ITS OWN CUSTOMERS, THEY
WILL THEN ASK TO REMOVE THE CAPS
ON THE LIABILITY PER DECEASED
PERSON IMPOSED BY THE WARSAW
CONVENTION.
THIS MAY ALSO AFFECT BOEING'S
INSURANCE CARRIER'S COVERING OF
THIS AND COULD EXPOSE BOEING TO
HAVING TO BECOME SUDDENLY
SELF-INSURED ON THESE MATTERS.
WE DON'T KNOW WHERE IT'S GOING
TO GO.
THEY OBVIOUSLY HAVE A STRONG
DEFENSE BUT THE "WALL STREET
JOURNAL" DID EXTRAORDINARY
REPORTING.
>> JUDGE, ISN'T THE MAIN
QUESTION HERE FROM WALL STREET
LOOKING AT THIS IS WE ARE GOING
TO SEE AN UNPRECEDENTED FINE
FROM THE FAA TO BOEING, RIGHT,
SOMETHING THAT THEY WOULD HAVE
NEVER SEEN BEFORE.
WE HAVE EVEN SEEN FACEBOOK SET
ASIDE OVER $5 BILLION, INITIALLY
THREE, FOR BREAKING RULES.
IS THAT THE MAIN WORRY FOR
SHAREHOLDERS OR IS IT THAT
UNLIMITED CAP FROM --
>> I THINK IT'S THE LATTER.
I DON'T KNOW WHAT THE
GOVERNMENT'S FINE WILL BE.
IT'S EASIER FOR THE GOVERNMENT
TO FINE YOU THAN FOR A JURY TO
IMPOSE LIABILITY ON YOU, BECAUSE
THE STANDARD IS SO LOW.
THE REGULATORS HAVE SO MUCH MORE
AUTHORITY.
ON TOP OF THAT, THE PRESIDENT'S
THREATS TO INCREASE THE TARIFFS
ON CHINA SO A LOT OF FACTORS IN
PLAY HERE ALL AT ONCE.
>> DID YOU GUYS HEAR JUST WITHIN
THE PAST 12 HOURS, 900
INSPECTORS ARE LOOKING TO LET GO
AND THEY WANT TO REPLACE THOSE
900 INSPECTORS ARE TECHNOLOGY
IMPROVEMENT?
THAT'S JUST ANOTHER SIDE CASE TO
ANNOUNCE TO ALL OF THIS.
I WONDER IF THE CEO SHOULD STEP
DOWN.
THIS IS A HYPOTHETICAL
SITUATION.
IF YOU WERE DEFENDING BOEING,
WHAT WOULD YOU DO TO TRY TO
MITIGATE ANY TYPE OF THOSE
LAWSUITS?
>> YOU MEAN IF I JUST LEARNED
ABOUT IT TODAY?
>> IF YOU WERE COUNSEL.
>> I WOULD BE AS OPEN AND HONEST
AS I CAN BE, WHICH ACCORDING TO
JACKIE'S REPORT, BOEING HAS
BEEN.
THEY READILY ACKNOWLEDGE WHAT
THEY KNEW, WHEN THEY KNEW IT.
THEY WERE NOT HONEST UNTIL TODAY
AFTER THE "WALL STREET JOURNAL"
PIECE CAME OUT.
BUT LOOK, ONE MUST ASSUME, THIS
IS A FASCINATING QUESTION, ONE
MUST ASSUME THAT THE TRUTH WILL
EVENTUALLY COME OUT AND WHEN ONE
ASSUMES THAT, THEN COUNSEL
ADVISES YOU TO TELL THE TRUTH
FROM DAY ONE.
THEY CANNOT RECONSTRUCT HISTORY.
HAD I BEEN ADVISING BOEING ALL
ALONG, I WOULD HAVE SAID REPORT
THIS STUFF.
YOU DON'T TELL THE CUSTOMERS.
>> YOU DON'T THINK THEY HAD
LEGAL COUNSEL ON THE SIDELINES?
>> I DON'T KNOW IF THEY EVER
TALKED TO THEIR LAWYERS ABOUT
THIS.
>> JUDGE, THIS GAIRS KAL
>> JUDGE, THIS ISIRS KAL
>> JUDGE, THIS IS GS KAL
>> JUDGE, THIS IS GARKAL
>> JUDGE, THIS IS GARYAL
>> JUDGE, THIS IS GARY L
>> JUDGE, THIS IS GARY KALTBAUM.
I WAS GOING TO ASK THE OTHER
SIDE OF THE QUESTION.
SOMEBODY GOING AFTER BOEING.
WHAT ARE THE TOP THREE THINGS
THEY WILL HIT THEM ON AS FAR AS
LITIGATION AND YOU KNOW, BOEING
I THINK SAID TODAY SOMETHING TO
THE EFFECT OF THEY HAVE NO CLUE
HOW MUCH THIS IS GOING TO COST
WHICH MEANS A HECK OF A LOT, I
GATHER.
>> GARY, THIS IS FACT-SENSITIVE,
MEANING A FACT FINDER PROBABLY A
FEDERAL JUDGE, WILL DETERMINE
WHAT BOEING KNEW AND WHEN IT
KNEW IT.
TO THE EXTENT OF SILENCE OR
DECEPTION ON THE PART OF BOEING,
THE MORE THE SILENCE, THE MORE
DECEPTION, THE MORE A JURY WILL
COME DOWN ON THEM.
THAT'S PRETTY BASIC.
>> JUDGE, IT'S JONATHAN HOENIG.
THANKS FOR BEING WITH US.
THESE CRASHES ARE TERRIBLE, YOUR
HEART GOES OUT TO THE VICTIMS
BUT AIR TRAVEL IS UNBELIEVABLY
SAFE.
YOUR CHANCES OF DYING IN AN
AIRCRAFT ACCIDENT ARE ABOUT ONE
IN FIVE MILLION.
YOUR CHANCES OF DYING WALKING
DOWN THE STREET ARE ABOUT ONE IN
500.
AREN'T THESE VICTIMS AND
FAMILIES OF VICTIMS GOING TO
HAVE TO PROVE THIS PARTICULAR
SENSOR WAS INTEGRAL TO THESE
PLANES ACTUALLY GOING DOWN?
IT'S A HARDER CASE TO MAKE THAN
YOU INITIALLY THINK, NO?
>> YES.
THE WAY IT WOULD WORK, THE
BELLWETHER CASE, ONE PLAINTIFF
WITH ALL THE POWER AND MIEF
WITH ALL THE POWER AND MIGHT OF
THEIR LAWYERS AND EXPERTS
AGAINST BOEING.
THE WAY THAT TURNS OUT WILL BE
THE SAME FOR ALL OF THE OTHERS.
BOEING WINS THAT, IT'S OFF THE
HOOK.
BOEING LOSES THAT, IT WILL HAVE
TO START SELLING REAL ESTATE.
DAVID: WE HAVE TO LEAVE IT
THERE.
>> MUILENBURG WILL NOT BE HAPPY