GM and Chrysler File Bankruptcy, Dissolve Current and Future Defective Product Claims
General Motors and Chrysler have thrown in the towel and after taking billions of our tax dollars, they have filed for bankruptcy. This means that the company stockholders and a whole lot of other people are left with nothing. The focus in the news has been on the dealers who have lost their dealerships and on all of the job losses. But there has been little mentioned about the affect the two bankruptcies will have on the victims of defective vehicles that were produced by the two manufacturers.
People are injured all the time by defects in these cars and trucks and I sincerely believe that the past lawsuits against the manufacturers have forced the companies produce safer cars. Sometimes, fear of litigation is not such a bad thing. But those poor folks who have suffered the loss of a loved one or who were seriously hurt because of a defective Chrysler or GM vehicle, have just seen their lawsuit go away. There is virtually zero chance that these victims will ever recover a dime in either of these two very complicated bankruptcies.
It also appears that the bankruptcies will forever extinguish the rights of people who are injured in the future as a result of defective cars which were manufactured before these bankruptcies were filed. Sound crazy? Absolutely! Unfortunately, if you become injured in 2010 as a result of a known defect in your 2008-model GM or Chrysler car that exploded upon impact and paralyzed you, it means you will have no right to sue the maker of the car for the known defect.
It doesn't seem fair at all, but that's exactly what all the smart bankruptcy lawyers are saying. They are aware of this fact and it might have even been one of the multiple reasons for the comanys' decision to file in the first place.
Arguably, there should be a way to set aside some money for the potential future lawsuits, or make Fiat or the New GM somehow responsible when these suits arise. But that's just not going to happen, which is too bad for us consumers.
Mark A. Anderson is an injury attorney based in Fort Worth, Texas and can be reached at 817-294-1900 or contact him online.
