Pending Death And Injury Claims Against Chrysler and GM Result In Inequities
Under the bankruptcy plans that were approved for Chrysler and GM, thousands of American consumers with pending claims against these companies alleging that the design, manufacturing, and product defects in their cars caused their wrongful death or catastrophic injury will be forced to bring their claims to the bankruptcy courts.
Under the bankruptcy plan for Chrysler, all consumers who purchased Chrysler vehicles before Chrysler emerged from bankruptcy will likewise be relegated to bring claims in bankruptcy court if a defect in one of those vehicles caused a catastrophic injury or death. There are approximately 30 million Chrysler vehicles currently on the road that were purchased before the new Chrysler was established.
New GM on the other hand has accepted responsibility for injuries or deaths caused by defects in old GM vehicles as long as those claims were not pending before the new GM emerged from bankruptcy. That means that Chrysler is the only car company in America that will not stand behind the safety of its vehicles. There will be virtually no money in the bankruptcy court to pay any sums to tort claimants who have cases against Chrysler, LLC and only a small sum available to tort claimants against General Motors Corporation.
This situation leaves claimants victimized twice - first by an unsafe car that, in many cases, caused devastating injury or death, and second by a bankruptcy they had nothing to do with. This result is unfair and unnecessary and with only a small additional investment Chrysler and GM can afford every victim their day in court.
Congress should pass legislation that will require Chrysler and GM to accept liability for product liability claims that were pending as of the time that the companies declared bankruptcy and would require Chrysler to accept liability for product liability claims involving its vehicles that were sold pre-bankruptcy. According to the companies themselves, this will not impose a great deal of additional costs on the companies since they are now already indemnifying their dealer network and at the same time make sure that all the victims receive their day in court. Without integrity there is nothing.
The vehicle accident and Pennsylvania product liability lawyers of Reiff & Bily are committed to promoting automobile safety and holding manufacturers of defective products accountable for injuries and damages suffered as a result of defectively designed products by manufacturers who emphasize profitability over safety. For a free no obligation consultation, call us at 1-800-421-9595 or visit us online at www.reiffandbily.com.
