Industryweek 6516 Gm Logo

GM to Seek Court Protection from Ignition Lawsuits

April 16, 2014
GM plans to ask the New York court which oversaw its 2009 bankruptcy to determine whether it can be sued for liabilities arising from the company's operations pre-bankruptcy. The company's filing said that the bankruptcy court's original restructuring plan made clear that liabilities like the ignition-switch problem remain with Old GM and that third parties cannot sue New GM for them.

NEW YORK - General Motors (IW 500/5) plans to ask a bankruptcy court to rule that it is protected from lawsuits arising from faulty ignitions tied to 13 deaths and numerous crashes.

In a federal court filing in Corpus Christi, Texas, late Tuesday, GM said it plans to ask the New York court which oversaw its 2009 bankruptcy to determine whether it can be sued for liabilities arising from the company's operations pre-bankruptcy.

The bankruptcy reorganization, which came after the U.S. government rescued the largest U.S. automaker the previous year, split the company into "Old GM" and "New GM."

The company's filing Tuesday said that the bankruptcy court's original restructuring plan made clear that liabilities like the ignition-switch problem remain with Old GM and that third parties cannot sue New GM for them.

Ignition-switch lawsuits like that filed in the Corpus Christi court relate "to a vehicle designed, manufactured, originally sold and advertised by Old GM; a potentially defective component part allegedly existing in an automobile sold in 2006, before New GM even existed," the company argued.

GM said it will ask the bankruptcy court for a definitive ruling on the liability of New GM in all ignition cases.

The 2009 bankruptcy decision "has already expressly enjoined third parties... from asserting claims against New GM that remained with Old GM," the company said.

GM said it wants the Corpus Christi trial halted at any rate so it can consolidate into one all of the lawsuits arising from the faulty ignitions, to be heard by a California judge.

It said it expects the bankruptcy court judge to rule it is protected from the suits.

But even if the court rules that New GM is partly liable, its ruling will "inevitably narrow and fundamentally alter" the nature of the cases, GM said, more reason to halt the Texas proceedings.

Copyright Agence France-Presse, 2014

Popular Sponsored Recommendations

3D Printing a More Efficient Factory Floor

Nov. 16, 2023
Today’s additive manufacturing platforms make it simple to print a wide range of high-performing industrial parts as soon as possible and right where you need them — unlocking...

What Is Your Smart Factory IQ?

Sept. 24, 2023
It’s time to put Smart, data-driven manufacturing operations to the test. In this comprehensive whitepaper we show you how to determine the Artificial Intelligence Quotient (AIQ...

Process Mining For Dummies

Nov. 19, 2023
Here it is. Everything you need to know about process mining in a single book, written in the easy-to-understand, hard-to-forget style that ‘For Dummies’ manages so effortlessly...

7 Crucial Steps to Improve Your OT Security

Oct. 23, 2023
Enhance OT security in manufacturing and production. Uncover the crucial steps to safeguard your operational technology. Protect against evolving threats and bridge the IT-OT ...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!