Photo: General Motors
The United States Court of Appeals for the Second Circuit has overturned a previous decision of the US Bankruptcy Court in Manhattan regarding the GM ignition switch recall.
We are writing about a decision which allows claims of victims of the General Motors faulty ignition switch to call the company to court even if their injuries happened before 2009, the year of GM’s bankruptcy filing.
Before this ruling, victims of the faulty ignition switch made by General Motors could not pursue the restructured company in court for damages because of a decision of the United States Bankruptcy Court. At the time, General Motors managed to emerge from bankruptcy free from any pre-bankruptcy liabilities.
With the new decision, owners of vehicles that were produced by General Motors and were fitted with a faulty ignition switch because of a design flaw can sue the newly formed GM for damages. Not only victims that were injured in an accident caused by the switch being shut off will be able to sue the company, but also owners that have seen the resale value of their vehicles drop because of the issue.
As The New York Times reports, a lawyer who represents some plaintiffs against General Motors has stated that hundreds of injury and wrongful death cases were delayed while this instance was being considered. Robert C. Hilliard, the attorney in question, has filed 265 lawsuits.
According to General Motors’ filings with US security regulators, another 101 lawsuits are pending, but these are accusing GM of reportedly causing vehicle values to decline because of the faulty ignition switches it used.
The switches in question used a sub-standard component, requested by GM in spite of warnings from its suppliers, who explained that it could cause the ignition to slip suddenly from the “run” position, and cause the engine to stall while also deactivating the airbags.
If the driver were to move the steering wheel, it would also lock, increasing the risk of an accident. At least 124 drivers died because of this, and 275 others have been wounded in crashes caused by the problem.
Before this ruling, victims of the faulty ignition switch made by General Motors could not pursue the restructured company in court for damages because of a decision of the United States Bankruptcy Court. At the time, General Motors managed to emerge from bankruptcy free from any pre-bankruptcy liabilities.
With the new decision, owners of vehicles that were produced by General Motors and were fitted with a faulty ignition switch because of a design flaw can sue the newly formed GM for damages. Not only victims that were injured in an accident caused by the switch being shut off will be able to sue the company, but also owners that have seen the resale value of their vehicles drop because of the issue.
As The New York Times reports, a lawyer who represents some plaintiffs against General Motors has stated that hundreds of injury and wrongful death cases were delayed while this instance was being considered. Robert C. Hilliard, the attorney in question, has filed 265 lawsuits.
According to General Motors’ filings with US security regulators, another 101 lawsuits are pending, but these are accusing GM of reportedly causing vehicle values to decline because of the faulty ignition switches it used.
The switches in question used a sub-standard component, requested by GM in spite of warnings from its suppliers, who explained that it could cause the ignition to slip suddenly from the “run” position, and cause the engine to stall while also deactivating the airbags.
If the driver were to move the steering wheel, it would also lock, increasing the risk of an accident. At least 124 drivers died because of this, and 275 others have been wounded in crashes caused by the problem.
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