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Home » Uncategorized » Court Rules in Favor of General Motors, Shielding Them from Pre-Bankruptcy Ignition Switch Death Claims

Court Rules in Favor of General Motors, Shielding Them from Pre-Bankruptcy Ignition Switch Death Claims

General-MotorsFederal Judge Robert Gerber recently ruled in favor of General Motors concerning a major lawsuit dealing with the deaths and injuries of people because of a faulty ignition switch.  According to the ruling, General Motors will not be held liable for any injuries or damage because of the faulty switch that happened before they left bankruptcy in July of 2009.


The ruling is mostly favorable for GM, closing the door for one known issue yet opening another.  Because of the ruling, GM will be shielded from $7-$10 billion in potential legal liabilities concerning the faulty switches.  The flip-side to the issue, however, is that plaintiffs who claim a loss in their car’s value can still sue GM, but can only do so for actions taken by the company after the 2009 bankruptcy.


According to Gerber, because of the bankruptcy, the “new GM” should not be held liable for the faults of the pre-bankruptcy “old GM.”  In his 138-page opinion, Gerber wrote that at least 24 people in the company knew about the faulty switches, and the company had enough time required by federal law to issue a recall.  However, he continued, there was no evidence showing that the bankruptcy attorneys knew anything about the faulty switches.


The plaintiffs are unhappy with the decision, and they have stated that they are going to appeal it.  They claim that they never had a chance to even dispute the company’s bankruptcy order, or were even notified of the bankruptcy, because GM concealed the faulty switches.  Not only do they plan to appeal the judge’s decision, but the plaintiffs also claim that the company knew they were selling faulty vehicles and simply concealed the truth.


If you are considering bankruptcy, take the time to discuss your options with a professional bankruptcy attorney.  While it’s possible to file for bankruptcy on your own, having a bankruptcy attorney on your side means you won’t accidentally overlook even the most minute of details.  A bankruptcy attorney will guide you step-by-step through the entire process, and will handle the complicated legal matters while you can continue living your life.


Don’t wait until you’re further in debt, call us today and see how our bankruptcy attorneys can help you.

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