Posted on 07/13/2016 12:09:53 PM PDT by jazusamo
In a blow to General Motors Co (GM.N), a federal appeals court on Wednesday reversed part of a bankruptcy court ruling that protected the automaker from some lawsuits over an ignition switch defect that prompted the recall of 2.6 million vehicles in 2014.
The 2nd U.S. Circuit Court of Appeals in Manhattan said barring plaintiffs from suing the automaker over crashes and lost vehicle value stemming from the faulty switch would violate their constitutional rights to due process, since they had not been notified of the defect prior to GM's 2009 bankruptcy.
The ruling effectively rebuffs GM's attempts to shield itself from hundreds of customer lawsuits over faulty ignition switches, and other vehicles components, on grounds that they were automatically barred by the company’s 2009 bankruptcy sale to a new corporate entity.
"Due process applies even in a company's moment of crisis," the opinion stated.
The 2nd Circuit's decision affects injury and death cases stemming from pre-bankruptcy crashes, as well as claims for lost vehicle value. Plaintiffs had filed lawsuits over the ignition switch, as well as dozens of other parts in GM vehicles that were subject to recalls in 2014.
(Excerpt) Read more at reuters.com ...
Good!! Didn’t people die from this?
Yes, some died and many injured.
It was disgusting that they even tried to hide behind bankruptcy. People should be in jail.
But hell, If Goldman Sachs and HSBC can wash money for drug dealers, anything goes, I guess.
Please add the FBI, Hillary and Comey and probably Lynch to this.
Seems like in the position they are in, this would be another pass through to the taxpayer/funny-money basket GM is currently in.
We might better be asking why not sell this GM thing to the highest bidder or coalition of bidders (should they want it parted out), even at the cost of eating a loss and doing a taxpayer fund of the fix/compensation. It isn’t too big to fail, though it probably is not too bad to find itself reborn.
Sorry. How could i forget!
At least some part of Government Motors is subject to the law.
Very interesting take.
Yes, it is said that 124 people died from this.
GM tried to sweep the problem under the rug while more and more of their customers were dying on the road. And they are still trying to avoid responsibility for their screw ups.
On the other hand, VW didn’t kill a single person with their emissions cheat, and they didn’t try to avoid the consequences of their actions. It is costing them billions.
FUGM.
I might add...
FUEPA
Obama called holders of the preferred bonds “Speculators”.
If I remember right, Toyota got fined $5 billion for a marginal alleged defect in the accelerator programming because they allegedly covered up the defect .... still waiting for the $10 billion fine for Government Motors carnage.
Exactly...This GM coverup on the ignition switch is much worse than the Toyota accelerator thing and GM basically got a slap on the wrist.
Not that I have any love for GM, but that would leave the US with one major auto manufacturer, Ford.
I hope the ruling bankrupts them again
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