Teh One Who Knocks
03-17-2014, 11:08 AM
Alisa Priddle and Greg Gardner , Detroit Free Press
http://i.imgur.com/4L5lNtG.jpg
The tragic deaths of two teenage girls from Wisconsin in a 2006 crash in a Chevrolet Cobalt left their families reeling, but they felt they had no legal recourse against General Motors.
Now the 2005 Chevrolet Cobalt in which they died is the subject of a highly publicized recall more than seven years later, and the families of the girls have new lawyers and new evidence.
Their lawsuit could be the first test of GM's legal immunity from liability for deaths or injuries in accidents that happened before the current company was created out of the government-supported bankruptcy in July 2009. It was left free of old claims and lawsuits and those remained with "old GM," which holds assets and liabilities that did not go with the "new GM."
The families of Natasha Weigel, 18, and Amy Rademaker, 15, are part of a personal injury lawsuit that could be filed as early as Monday alleging that GM fraudulently kept information about defective ignition switches from bankruptcy court.
GM documents filed with federal safety regulators show the company knew of a problem with ignition switches on early Saturn Ions as early as 2001.
"I'm appalled and shocked and angry," said Ken Rimer, Weigel's stepfather. "Accidents can happen, but now we know this was not human error; it was a mechanical problem that could have been prevented."
On Oct. 24, 2006, a 2005 Cobalt containing three girls veered off the road and hit a grove of trees. Passengers Weigel and Rademaker died of their injuries. Driver Megan Ungar-Kerns survived but sustained severe head injuries. She has no recollection of the accident or events leading up to the deadly crash. None of the occupants was wearing her safety belt, investigators said.
GM's stance is that the families have no legal recourse because their accident occurred before 2009.
"That shield will be shattered by their active fraud over 10 years," said Bob Hilliard, the Corpus Christi, Texas, attorney who represents the parents of the girls. "There's some pretty black-letter bankruptcy law that says you can't fail to disclose information that might result in future liability."
Late Friday, Hilliard's firm announced it has also filed the first class-action suit against GM on behalf of anyone who has bought or leased a vehicle suspected of having a faulty ignition switch. The suit demands compensation for falling resale values of these damaged vehicles.
The suit also demands that GM tell vehicle owners to stop driving recalled cars until parts arrive in April to fix them. Until then, Hilliard likens the cars to a "stick of dynamite with a slow-burning fuse. When it goes off it will be sudden, violent and deadly."
New information is emerging daily about what and when GM knew about the ignition switches. It faces investigations by federal safety regulators, both houses of Congress and the Justice Department..
GM has recalled 1.62 million vehicles globally, including 2005-07 Chevrolet Cobalts, 2003-07 Saturn Ions, Pontiac G5s, Solstices and Chevrolet HHRs. The key in the ignition switch can be jarred into accessory mode, which shuts off the engine, disables the power steering, air bags and other electrical systems. Twelve deaths and 31 crashes so far have been linked to the defective switches.
GM is advising owners to remove heavy objects from their key chains. Dealers will begin replacing the ignition switches next month.
In an earlier interview about the pending lawsuit stemming from the Wisconsin accident, Hilliard said alcohol was not involved in the October 2006 crash, but even in cases where it may have been a factor, that should not mitigate GM's liability if the car suddenly lost power because the ignition shut down "through no misconduct or irresponsibility by the driver."
Laura Christian's daughter Amber, 16, died in a 2005 accident in Maryland in a 2005 Cobalt. Data from the car's "black box"recorder showed that the ignition was not in the on position, and the airbags didn't deploy.
Investigators also said she "was under the influence of alcohol," wasn't wearing a safety belt and accelerated full-throttle to 69 mph down the wrong side of the road in a residential cul-de-sac before leaving the road and slamming into trees.
Christian said she is considering joining with the Hilliard firm to challenge the immunity as well, and she hopes to be called to testify in congressional hearings.
"Immunity is pure cowardice," Christian said. "They are hiding behind bankruptcy."
Evidence GM was aware of the problem prior to bankruptcy has become public only in recent weeks. It was not disclosed when early accident deaths occurred.
The Weigel and Rademaker families retained local lawyers in 2006, largely to negotiate insurance settlements for medical costs. Weigel was in a coma for 11 days and medical bills quickly grew to $250,000, Rimer said. The families reached insurance settlements for $100,000 each and were able to tap additional policies to cover medical costs.
While the accident report noted that the ignition switch was in the accessory position, it did not list that as the cause. The cost of suing GM in Wisconsin, which has a wrongful death cap of $300,000, seemed formidable, so the family decided not to pursue legal action. "It became a dollar-and-cents thing," Rimer said. "It could cost more than we could recover."
But he is providing paperwork to Hilliard to act now.
Rademaker's mother, Margie Beskau, also feels the need to act now. "It's been 7½ years, and it's been very hard," she said. "No one else can speak for my daughter. I have to be her voice."
Beskau realizes GM's liability protection could block a damage award now, but she wants to proceed. "I think the government should make GM accountable because they bailed them out and GM lied. That should totally invalidate their protection against lawsuits."
GM is focused on ensuring the safety and peace of mind of customers involved in the recall, said spokesman Greg Martin. "It is true that new GM did not assume liability for claims arising from incidents or accidents occurring prior to July 2009," Martin said.
Doug Bernstein, a bankruptcy lawyer with Plunkett Cooney, said there is no iron-clad immunity. GM probably did not specifically list the ignition problem as a potential liability and thus could be exposed.
"Full disclosure is the price of fresh start in bankruptcy," Bernstein said.
http://i.imgur.com/4L5lNtG.jpg
The tragic deaths of two teenage girls from Wisconsin in a 2006 crash in a Chevrolet Cobalt left their families reeling, but they felt they had no legal recourse against General Motors.
Now the 2005 Chevrolet Cobalt in which they died is the subject of a highly publicized recall more than seven years later, and the families of the girls have new lawyers and new evidence.
Their lawsuit could be the first test of GM's legal immunity from liability for deaths or injuries in accidents that happened before the current company was created out of the government-supported bankruptcy in July 2009. It was left free of old claims and lawsuits and those remained with "old GM," which holds assets and liabilities that did not go with the "new GM."
The families of Natasha Weigel, 18, and Amy Rademaker, 15, are part of a personal injury lawsuit that could be filed as early as Monday alleging that GM fraudulently kept information about defective ignition switches from bankruptcy court.
GM documents filed with federal safety regulators show the company knew of a problem with ignition switches on early Saturn Ions as early as 2001.
"I'm appalled and shocked and angry," said Ken Rimer, Weigel's stepfather. "Accidents can happen, but now we know this was not human error; it was a mechanical problem that could have been prevented."
On Oct. 24, 2006, a 2005 Cobalt containing three girls veered off the road and hit a grove of trees. Passengers Weigel and Rademaker died of their injuries. Driver Megan Ungar-Kerns survived but sustained severe head injuries. She has no recollection of the accident or events leading up to the deadly crash. None of the occupants was wearing her safety belt, investigators said.
GM's stance is that the families have no legal recourse because their accident occurred before 2009.
"That shield will be shattered by their active fraud over 10 years," said Bob Hilliard, the Corpus Christi, Texas, attorney who represents the parents of the girls. "There's some pretty black-letter bankruptcy law that says you can't fail to disclose information that might result in future liability."
Late Friday, Hilliard's firm announced it has also filed the first class-action suit against GM on behalf of anyone who has bought or leased a vehicle suspected of having a faulty ignition switch. The suit demands compensation for falling resale values of these damaged vehicles.
The suit also demands that GM tell vehicle owners to stop driving recalled cars until parts arrive in April to fix them. Until then, Hilliard likens the cars to a "stick of dynamite with a slow-burning fuse. When it goes off it will be sudden, violent and deadly."
New information is emerging daily about what and when GM knew about the ignition switches. It faces investigations by federal safety regulators, both houses of Congress and the Justice Department..
GM has recalled 1.62 million vehicles globally, including 2005-07 Chevrolet Cobalts, 2003-07 Saturn Ions, Pontiac G5s, Solstices and Chevrolet HHRs. The key in the ignition switch can be jarred into accessory mode, which shuts off the engine, disables the power steering, air bags and other electrical systems. Twelve deaths and 31 crashes so far have been linked to the defective switches.
GM is advising owners to remove heavy objects from their key chains. Dealers will begin replacing the ignition switches next month.
In an earlier interview about the pending lawsuit stemming from the Wisconsin accident, Hilliard said alcohol was not involved in the October 2006 crash, but even in cases where it may have been a factor, that should not mitigate GM's liability if the car suddenly lost power because the ignition shut down "through no misconduct or irresponsibility by the driver."
Laura Christian's daughter Amber, 16, died in a 2005 accident in Maryland in a 2005 Cobalt. Data from the car's "black box"recorder showed that the ignition was not in the on position, and the airbags didn't deploy.
Investigators also said she "was under the influence of alcohol," wasn't wearing a safety belt and accelerated full-throttle to 69 mph down the wrong side of the road in a residential cul-de-sac before leaving the road and slamming into trees.
Christian said she is considering joining with the Hilliard firm to challenge the immunity as well, and she hopes to be called to testify in congressional hearings.
"Immunity is pure cowardice," Christian said. "They are hiding behind bankruptcy."
Evidence GM was aware of the problem prior to bankruptcy has become public only in recent weeks. It was not disclosed when early accident deaths occurred.
The Weigel and Rademaker families retained local lawyers in 2006, largely to negotiate insurance settlements for medical costs. Weigel was in a coma for 11 days and medical bills quickly grew to $250,000, Rimer said. The families reached insurance settlements for $100,000 each and were able to tap additional policies to cover medical costs.
While the accident report noted that the ignition switch was in the accessory position, it did not list that as the cause. The cost of suing GM in Wisconsin, which has a wrongful death cap of $300,000, seemed formidable, so the family decided not to pursue legal action. "It became a dollar-and-cents thing," Rimer said. "It could cost more than we could recover."
But he is providing paperwork to Hilliard to act now.
Rademaker's mother, Margie Beskau, also feels the need to act now. "It's been 7½ years, and it's been very hard," she said. "No one else can speak for my daughter. I have to be her voice."
Beskau realizes GM's liability protection could block a damage award now, but she wants to proceed. "I think the government should make GM accountable because they bailed them out and GM lied. That should totally invalidate their protection against lawsuits."
GM is focused on ensuring the safety and peace of mind of customers involved in the recall, said spokesman Greg Martin. "It is true that new GM did not assume liability for claims arising from incidents or accidents occurring prior to July 2009," Martin said.
Doug Bernstein, a bankruptcy lawyer with Plunkett Cooney, said there is no iron-clad immunity. GM probably did not specifically list the ignition problem as a potential liability and thus could be exposed.
"Full disclosure is the price of fresh start in bankruptcy," Bernstein said.