Auto Defect Claims after GM/Chrysler Bankruptcy
Posted by John Sedgewick - 18/01/10 at 09:01 pmIn 2009, the US government poured billions of dollars into GM and Chrysler, while at the same time allowing them to wipe out the legitimate personal injury claims of thousands of individuals injured by defective cars and trucks sold by these two companies. This was done through the GM and Chrysler bankruptcy filings, and over the objection of plaintiffs’ lawyers, particularly those associated with AIEG (the Attorneys Information Exchange Group). Despite the objections made in Congress and in the bankrupty court, thousands of pending claims were wiped out.
Since defective GM and Chrysler vehicles are still on the road and are still causing injuries, many injured people and their lawyers are wondering whether it is now possible to succeed in a products liability claim against the “new” Chrysler and the “new” GM.
The answer is that anyone who has been injured as a result of a defect in a GM or Chrylser vehicle should consult immediately with a lawyer experienced with such cases. There are several ways which the bankruptcy bar may be overcome or avoided. One way is to look closely at the timing of the bankruptcy and the injury to see whether a particular claim is subject to the bar. For the most part, injuries suffered after the bankruptcy was officially approved are not barred. Another option is to consider bringing barred claims against defendants who are not protected by the bankruptcy law. For instance, component part manufacturers and retail auto dealers (including used car dealers) may be subject to suit even if GM and Chrysler are not. Also, many new cars sold by GM and Chrysler were manufactured in Canada, in Mexico or in Asia by affiliated companies or by partners. Those affiliates and partners are not protected by the GM and Chrysler bankruptcies.
So, if you or someone you love has been injured by a defect in a car, truck, bus or van bearing a GM or Chrysler nameplate, do not be discouraged from pursuing your claim just because the government has provided both money and bankruptcy protection to these two big companies. Your rights may be protected by an approach to the case that only and experienced attorney can identify.
