Some Closing Observations - Thursday, August 19, 2010 12:52 - 0 Comments

Bankruptcies by General Motors & Chrysler

I have been very surprised that the national media found it necessary to give two automakers a virtual pass on something that hurt thousands of U.S. citizens. When General Motors and Chrysler filed for bankruptcy in 2009, each company sought immunity from past and future product liability lawsuits involving the tens of millions of GM and Chrysler cars on the road. Facing mounting pressure from victims, state Attorneys General, lawyers, and consumer groups, the companies finally agreed to accept responsibility for defect-related injuries suffered by consumers who bought their GM and Chrysler vehicles post-bankruptcy. Unfortunately, the automakers will not compensate anyone injured or killed by defective cars if the accident occurred before the bankruptcies. This unprecedented event results in victimizing over 1,000 consumers – some with catastrophic injuries, many of whom are children – and that’s very sad indeed.