Teh One Who Knocks
04-16-2015, 10:49 AM
Chris Woodyard, USA TODAY
http://i.imgur.com/23TW8rVm.jpg
A judge has sided with General Motors in its bid to shield itself from lawsuits before its 2009 bankruptcy, which could protect it from billions of dollars in claims related to defective ignition switches.
But it's not out of the woods: It still may face certain claims related to loss of value in cars made before 2009 if they can show they relate to the company's action after it came out of bankruptcy proceedings, Bloomberg News reports.
U.S. Bankruptcy Judge Robert Gerber ruled Wednesday in New York that a liability shield that was a condition of the reorganized GM's exit from bankruptcy remains in place.
Gerber presided over the emergence of "New GM" from bankruptcy. But plaintiff's lawyers argued that the automaker failed to disclose pending legal action sure to result from thousands of defective ignition switches that were being blamed for crashes and deaths. The Associated Press says one lawyer estimated that the cases could result in $7 billion to $10 billion in potential liability.
However, while Gerber sided with the GM on the issue of pre-bankruptcy liability, he left the door open to "otherwise viable claims against New GM for any causes of action that might exist arising solely out of New GM's own, independent" acts after the reorganization. They could include lawsuits that allege the value of GM vehicles has dropped due to the ignition switch cases, the AP says.
"New GM" did accept liability for accidents involving the older vehicles after it emerged from bankruptcy.
GM has set up an compensation fund administered by attorney Kenneth Feinberg for deaths and injuries from crashes related to the defective ignition switches. Feinberg has approved 84 claims so far for fatal accidents, eligible for compensation of at least $1 million each. The fund has also approved payment offers for 11 victims who suffered catastrophic life-changing injuries and nearly 145 claims for less severe injuries.
The fund has more than 1,000 applications for compensation still to review and GM has estimated it will pay between $400 million and $600 million to victims through the compensation fund.
http://i.imgur.com/23TW8rVm.jpg
A judge has sided with General Motors in its bid to shield itself from lawsuits before its 2009 bankruptcy, which could protect it from billions of dollars in claims related to defective ignition switches.
But it's not out of the woods: It still may face certain claims related to loss of value in cars made before 2009 if they can show they relate to the company's action after it came out of bankruptcy proceedings, Bloomberg News reports.
U.S. Bankruptcy Judge Robert Gerber ruled Wednesday in New York that a liability shield that was a condition of the reorganized GM's exit from bankruptcy remains in place.
Gerber presided over the emergence of "New GM" from bankruptcy. But plaintiff's lawyers argued that the automaker failed to disclose pending legal action sure to result from thousands of defective ignition switches that were being blamed for crashes and deaths. The Associated Press says one lawyer estimated that the cases could result in $7 billion to $10 billion in potential liability.
However, while Gerber sided with the GM on the issue of pre-bankruptcy liability, he left the door open to "otherwise viable claims against New GM for any causes of action that might exist arising solely out of New GM's own, independent" acts after the reorganization. They could include lawsuits that allege the value of GM vehicles has dropped due to the ignition switch cases, the AP says.
"New GM" did accept liability for accidents involving the older vehicles after it emerged from bankruptcy.
GM has set up an compensation fund administered by attorney Kenneth Feinberg for deaths and injuries from crashes related to the defective ignition switches. Feinberg has approved 84 claims so far for fatal accidents, eligible for compensation of at least $1 million each. The fund has also approved payment offers for 11 victims who suffered catastrophic life-changing injuries and nearly 145 claims for less severe injuries.
The fund has more than 1,000 applications for compensation still to review and GM has estimated it will pay between $400 million and $600 million to victims through the compensation fund.