Injury victims not provided for in General Motors bankruptcy
Most people have heard about the bankruptcy of General Motors and its attempt to reorganize as a "new" company. This week U.S. Bankruptcy Judge Robert Gerber gave General Motors the green light to move forward by selling the majority of its assets to a the "new" General Motors. However, what happens to those individuals who had pending product liability claims against General Motors prior to the bankruptcy filing?
Under the plan approved by the Bankruptcy Judge, those individuals with pending product liability claims against General Motors prior to the June 1, 2009, would have to look to the "old" General Motors to recover any monies to compensate them for their loss. The "new" General Motors has agreed to assume responsibility for future claims involving vehicles made by the "old" General Motors. The problem is that "old" General Motors will have limited assets and as one source stated, "those seeking claims against Old GM would likely get nothing."
Let's put a face on this problem. Robert Dinnigan, whose 10-year-old daughter was left a quadriplegic in an car accident while riding in a 2003 GMC Envoy two years ago, currently has a lawsuit pending against General Motors. According to the Mr. Dinnigan, he faces medical bills around $500,000 a year and needs $100,000 to make improvements to his home for his daughter's care given she is confined to a wheelchair. If the current plan were approved, he would probably be unable to recover any money from the "old" General Motors if he proves General Motors was responsible for his daughter's injuries.
An appeal is being filed on behalf of those accident victims in hopes those injured by General Motor products prior to June 1, 2009, will have some recourse. How big is the problem? Huge. According to the Associated Press, General Motors paid $1.1 billion in product liability payments in 2007 and $960 million in 2008. It is estimated that there are currently 1,000 lawsuits pending against General Motors that will be negatively impacted by this decision. If the bankruptcy ruling stands, those approximately 1,000 pending product liability claims against General Motors would most likely receive nothing for their injuries from General Motors. How do you explain that problem to the father of the girl injured by a defective car that has left her a quadriplegic for life? Who pays for her care? Who compensates her for her loss?
The Kisselburgh Law Firm is a Mississippi injury law firm which handles all types of cases involving serious injury or death including car accidents, tractor-trailer accidents, motorcycle accidents, drunk driving accidents, and injuries from defective products. If you have questions, call us at 601.936.4040 or contact us online.
