Lawyers cry foul over GM (and Chrysler)

[thundley4]

Consumer groups and trial lawyers are crying foul over the Obama administration’s bankruptcy plans for General Motors and Chrysler.

Those plans would extinguish all ongoing auto accident claims that blame a death or serious injury on a defective GM or Chrysler vehicle.
“It’s a raw deal for consumers,” said Clarence Ditlow, executive director of the Center for Auto Safety.
Ditlow said the plans are unusual in that they would prevent anyone from bringing a future liability claim against GM or Chrysler if a car already purchased from either company is defective and results in an accident causing death or serious injury.

He and others said it was also unusual for no money to be set aside for liability claims. When companies producing asbestos went bankrupt, some funds were set aside for such claims, Ditlow said.

Link

I wonder if this would affect any future recalls that may happen, also.  Then again, it has always been difficult to sue the federal government for damages, so why should the new government car companies be any different.

[DumbAss Tanker]

That actually is pretty staggering and it puts Ford at a real competitive disadvantage since they have no relief from claims at all and continue to have to budget for past, present and future litigation, much of which would go away for Chrysler and GM...of course as the one non-bankrupt, Ford has a certain marketing advantage which offsets that to some degree.

It is tough to sue the Federal government, but GM is still just a corporation in which the Government is the majority shareholder.  It is simply a legal person like any other corporation, and subject to suit under the same conditions and procedural rules any other corporation in a Chapter 11 lives with, it does not share in the Government's sovereign immunity.  GM may be government-(majority)-owned, but it is not a government agency.

[RobJohnson]

[SSG Snuggle Bunny]

Paging Ralph Nader

 

[thundley4]

Paging Ralph Nader

 

I believe Ralphie is already joined in on this case.

Third, proceedings in the Chrysler bankruptcy have highlighted the manifold injustice being perpetrated on victims of defective Chrysler products -- and likely to be perpetrated on victims of GM products. In the Chrysler proceeding, top Chrysler officials have acknowledged that they were ready and able to do a deal with Fiat that established successor liability for the emergent Fiat/"good Chrysler" company. In the course of bankruptcy or in preparing for bankruptcy, however, they reversed course, apparently just because they could. Now, hundreds of Chrysler victims are on track to have their claims extinguished, unless the bankruptcy judge or other court overrules this element of the bankruptcy plan.

Nader.org

[Eupher]

That actually is pretty staggering and it puts Ford at a real competitive disadvantage since they have no relief from claims at all and continue to have to budget for past, present and future litigation, much of which would go away for Chrysler and GM...of course as the one non-bankrupt, Ford has a certain marketing advantage which offsets that to some degree.

It is tough to sue the Federal government, but GM is still just a corporation in which the Government is the majority shareholder.  It is simply a legal person like any other corporation, and subject to suit under the same conditions and procedural rules any other corporation in a Chapter 11 lives with, it does not share in the Government's sovereign immunity.  GM may be government-(majority)-owned, but it is not a government agency.

This is the legal viewpoint that makes sense, but it doesn't stop the lawsuits from being filed that would challenge the new GM (Government Motors) as to its liability.

Let's see - how can we spell "dockets-jammed-till-eternity"?

[SSG Snuggle Bunny]

I believe Ralphie is already joined in on this case.  Nader.org

The DUmmies should begin somersaulting between their competing idols any moment now.

This is the legal viewpoint that makes sense, but it doesn't stop the lawsuits from being filed that would challenge the new GM (Government Motors) as to its liability.

Let's see - how can we spell "dockets-jammed-till-eternity"?

What if Obama sought to shroud GM policy in the exemption government gets for passing its laws?

[DumbAss Tanker]

What if Obama sought to shroud GM policy in the exemption government gets for passing its laws?

He can't actually do that since it is still a corporation, not a government agency, but at the same time that information is proprietary to a corporation and not subject to any demand for public release anyway, except under court discovery orders during litigation.

[SSG Snuggle Bunny]

He can't actually do that since it is still a corporation, not a government agency, but at the same time that information is proprietary to a corporation and not subject to any demand for public release anyway, except under court discovery orders during litigation.

Yeah...the law.

I miss it.

[Eupher]

What if Obama sought to shroud GM policy in the exemption government gets for passing its laws?

It's always a possibility - in fact, I wouldn't be at all surprised if he went that way.

After all, the gummint has to protect its investment.   

[Randy]

Lets see, now that the majority of the Banks and the Auto industry have been nationalized  what's next? Tourism? Farms?

When is our first 5 Year Plan being announced?