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: Personal Injury and Social Security Disability BlogQuestions About Automakers' Liability Arise During Bankruptcy Process
By Robert Kraft
Bloomberg News reports, "Plaintiffs in personal-injury and product-liability lawsuits against Chrysler LLC and General Motors Corp. are pressing members of Congress to ensure that their cases will be heard in court or an alternate form of compensation is found." Now, "consumer groups are appealing a New York bankruptcy court's decision on Chrysler, saying it relieves the new company of responsibility for old losses." Clarence Ditlow, executive director of the Center for Auto Safety, said, "Either the bankruptcy system has to take care of victims or the Obama administration needs to come up with a victim's fund much as we did in 9/11." In addition, "plaintiffs' lawyers in the Chrysler case objected to the sale of the company's assets because 'they may suspect that there won't be any money left, even if they were to win their cases.'"
CNN's Situation Room
with Wolf Blitzer details some stories of plaintiffs injured by
vehicles whose lawsuits have been put on hold due to the bankruptcy.
The plaintiffs are looking for a fund to be established that will help
pay the money they are due. In a segment on NPR's (6/3) All Things
Considered, the story was also covered.
MSNBC
contributes to the coverage with personal stories of people who will be
affected by GM and Chrysler's bankruptcy. "There are other victims who
are not as visible: the customers who were injured in defective
vehicles made by these companies." Consumer groups are outraged because
"when a company reorganizes under Chapter 11 protection, it can shed
negative assets and break free of past obligations, such as lawsuits."
In addition, at present, "all GM lemon law claims are on hold until the
bankruptcy court decides how the company should handle them." Weisbaum
says, "The Obama administration's Auto Task Force and the bankruptcy
judges must prevent these companies from shirking their moral
obligation."
ABC World News (6/3, story 5, 2:30, Gibson) reported that
bankruptcy attorney Barry Bressler said, "The government seems to be
pushing this through to streamline the procedure to the point where
individual's rights may really be minimalized."
The Philadelphia Inquirer reported, "Once the restructured companies emerge, all the legal protections that consumers rely on, including their ability to enforce warranty claims by invoking state 'lemon laws,' will apply to cars or trucks that the 'new Chrysler' or the 'new GM' sell." The Obama administration said it would "stand behind both automakers' warranties." Even so, "consumers who buy a new Chrysler or General Motors vehicle today, or who bought vehicles before or since the companies filed for bankruptcy, may enjoy fewer protections and face some extra risks, according to consumer advocacy groups such as Consumers Union and the Center for Auto Safety." Clarence Ditlow, executive director of the Center for Auto Safety, said, "The immediate impact on the consumer is that if you have a pending product-liability lawsuit, or if you're in a crash tomorrow that gives rise to a product-liability lawsuit, your claim is extinguished - you're not going to recover." The Washington Times also ran the story.
From the American Association for Justice news release.
Full post as published by Personal Injury and Social Security Disability Blog on June 04, 2009 (boomark / email).
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