Consumer Law

Chrysler/GM ?Bankruptcy Loophole? Update

By Andy Hoffman

As regular readers of ThePopTort can attest, we?ve been following the Chrysler/GM bankruptcies with the utmost interest (here, here, here), particularly with respect to the ?bankruptcy loopholes? which effectively immunize both companies from lawsuits should defects in the ?old? pre-bankruptcy Chrysler GM/vehicles injure or kill people.  Well, there have been a couple of notable developments in the last few days, so we wanted to give you the heads up.

First of all, Senate Commerce, Science and Transportation Committee Chairman John D. (Jay) Rockefeller IV released a statement yesterday, following an exchange of letters with GM/Chrysler heads about the companies? bankruptcy plans.  The statement said in relevant part:

?Both GM and Chrysler must take additional steps to extend a hand to their customers in rural areas who may lose access to service facilities because of the closing of dealerships. They must also take additional steps to stand behind their vehicles ? not turn their back on consumers who purchased vehicles before their bankruptcies.

?And I call on Congress to urgently review current bankruptcy laws to make certain that companies do not escape liability for injuries related to defective products.?

Meanwhile, Chris Cillizza?s influential Washington Post political blog, The Fix,  is covering a new ad effort aimed at alerting the public to the safety disaster looming as a result of Chrysler/GM immunity for product defects. (See embedded video below.)

In the meantime, keep following ThePopTort, CJ&D, and our friends at SafetyResearchNet to stay current with ongoing efforts to restore the rights of those injured or killed by defective Chrysler and GM vehicles.

Full post as published by ThePopTort on June 17, 2009 (boomark / email).