GM reverses stance on liability claims

Caving under pressure from a dozen state attorneys general, GM agreed to assume responsibility for product liability claims filed after it emerges from bankruptcy as a new company, even those claims involving vehicles made by the old company.

Courts typically allow companies under bankruptcy protection to leave claims behind in bankruptcy and emerge with a clean slate, a precedent G.M. and the government were relying upon, the New York Times reported. Chrysler, which completed a government-backed restructuring this month, left both product liability claims and unwanted dealers with its old estate, now known as Old CarCo.

As we reported last week, concern had been expressed by at least one safety expert that an absence of liability claims would have a chilling effect on recalls because the National Highway Transportation Safety Administration uses death and injury data to scan for defect trends. "If the claims aren't filed, we lose an important defect surveillance tool," said Sean Kane, president of Safety Research & Strategies.

The modification, outlined in court papers filed by GM late Friday, is a partial victory for consumer groups and attorneys general, the Washington Post reported. "Congress still needs to step in and do something for Chrysler victims," Joanne Doroshow, executive director of the Center for Justice and Democracy told the Post. "That bankruptcy is over. The only way for victims to get help is if there's a law that establishes it."

Comments

[Carlton]

As a victim of GM abortion the 98 Caddy Catera (original owner) with only 20,600 miles on it when the Tensioner Pulley & Timing Belt failed causing massive destruction to the engine That is a KNOWN defect in this vehicle thus the multi RECALLS & SPECIAL BULLETINS AND NOW GM refuse's to honor the OPEN RECALL'S warranting the replacement and or repairs caused by those failures. Had the nerve to charge me $1146.71 for the RECALLED Part's as well as knowing full well it would never repair the vehicle and than expected me to pay additional $6300 to get it running. So what is their idea of a resolution: a $3500 discount off the sticker to buy another GM, the same offer they would give to anyone walking in off the street without even a trade in, to stick me with another vehicle that only has a life expectancy of 20,30,40,000 miles. Or I should pay for 50% of the repair cost, not counting the $1146.71 I already paid for the recalled parts Hummmmm! I wonder how much is their actual cost of repair from the $6300, 50%? Owner Loyality Ha! were is the manufacturers Loyalty to the customer All I can say is GM should fail the same way their cars do, with NO ONE to Warranty their Bonus's.

[Callan Campbell]

I completely agree with the coincidentally named Jeremy Warriner. I'm also a claimant who is currently being swept under the rug as a result of this bankruptcy. Those of us with serious injuries, myself included, have serious financial worries as a result of endless and expensive health needs and consequently bills as well. It's truly worrisome to know there is a distinct possibility that we'll be at the mercy of the government at a stage in our lives where our last stop is at a nursing home much sooner than anyone could expect. With myself at the age of 23 and seeing how badly our healthcare system is being run and also seeing how I may never have the money to keep myself afloat in that inevitable situation, I can only imagine what we will all be facing as a nation when it's our turn to be taken care of, let alone the disabled and sick.

How can the president turn a blind eye to this horrific situation? It's bad enough that people were, are, and will be getting severely injured or killed as a result of GM's faulty vehicles, but to say "Sorry, you're case is no longer applicable." is just an egregious disservice to those people. Who and what else will be ignored next? I truly hope president Obama sees the severity of this situation and what kind of domino effect this can cause in America.

[Jeremy Warriner]

The fact that GM has accepted partial successor liability is important, but it still leaves the current victims in the dirt. How can they accept liability for some claims but not all? These claims still represent important safety data that could lead to immediate recalls in some cases. While this is good news it does nothing for the current victims of GM or Chrysler.

On Friday 6/26 Congressman Carson introduced the Jeremy Warriner Consumer Protection Act to the US House. It is an honor that this bill bears my name, but I am just one of the hundreds, if not thousands, of victims. This act will require both Chrysler and GM to purchase liability insurance policies that will cover these victims and future ones. Hopefully everyone will contact their representatives to show support for this bill.

[Cornell]

I'm glad I don't have a Chrysler Corporation vehicle. It will be interesting to see, down the line, how many current owners of Chrysler Corporation's vehicles go to other automobile manufacturer's vehicles when the time comes to replace the current ones.