GM unable to escape tort liability through Ch 11

[fdcg27]

Last July, the Second Circuit Court of Appeals ruled that GM was not shielded through its Chapter 11 reorganization from liability for accidents and injuries related to the ignition switch defect it had admitted to having known about for more than a decade.
New GM filed a writ with the Supreme Court, which this week refused to hear an appeal of the Second Circuit Court's ruling.
Therefore, GM is now facing potentially billions of dollars in claims arising from accidents, injuries and fatalities attributed to the faulty ignition switches installed in millions of vehicles.
This seems like a just outcome to me. I had thought that tort liability could not be discharged through bankruptcy, but in this case it apparently could have been had GM only disclosed the issue when the transfer of assets from Old GM to New GM was made in 2009. GM didn't do so and the result is that GM will now have to cover the consequential damages related to its past misdeeds.
Good write-up on page B1 of last Tuesday's WSJ.
One wonders what other skeletons might be lurking in the closet.

 

[oil_film_movies]

I'd always thought the trick of saying "But we're the NEW GM, not the OLD GM!" was just a lame reason to ignore past mistakes.
It has never worked for individuals, since if you commit a crime wearing a BLUE shirt, and appear in court wearing a new RED shirt, you can't tell the judge you're a new, different person now and therefore not responsible for anything you did before.

 

[Mr Nice]

They should be held responsible for all the deaths and injuries cause by poor engineering.

 

[Andrew1972]

Originally Posted By: Mr Nice
They should be held responsible for all the deaths and injuries cause by poor engineering.


It was initially bad engineering which they knew the first year they created the design. After that is reckless decision making by management, accounting and engineering to continue producing a poor design.

The take away has been recall happy car makers....

 

[edwardh1]

Originally Posted By: fdcg27
Last July, the Second Circuit Court of Appeals ruled that GM was not shielded through its Chapter 11 reorganization from liability for accidents and injuries related to the ignition switch defect it had admitted to having known about for more than a decade.
New GM filed a writ with the Supreme Court, which this week refused to hear an appeal of the Second Circuit Court's ruling.
Therefore, GM is now facing potentially billions of dollars in claims arising from accidents, injuries and fatalities attributed to the faulty ignition switches installed in millions of vehicles.
This seems like a just outcome to me. I had thought that tort liability could not be discharged through bankruptcy, but in this case it apparently could have been had GM only disclosed the issue when the transfer of assets from Old GM to New GM was made in 2009. GM didn't do so and the result is that GM will now have to cover the consequential damages related to its past misdeeds.
Good write-up on page B1 of last Tuesday's WSJ.
One wonders what other skeletons might be lurking in the closet.


when GM made junk cars in the 70s and 80s their CEO still made millions. they were blind to Japanese quality. no sympathy

 

[Blueskies123]

Originally Posted By: Mr Nice
They should be held responsible for all the deaths and injuries cause by poor engineering.


but so should the engineers that took the lazy way out of designing the ignition and its replacement that lead to these deaths. Just making millions from shareholders only goes so far, when they imprison a few engineers and managers it will send a real message about quality.

 

[53' Stude]

Yes, I truly hate doing GM recalls at my work. Sad GM has stooped so low.

Even our PM techs ("oil change technicians and new car guys" ) love to hate how the Impalas, Cruze and ALL Camaro's and ALL Cadillacs, do not come with fascia, air dams, etc installed. Now let me be fair and upfront: that's downright LAZY NESS!

 

[64bawagon]

Bad engineering is the result of a corrupt corporate culture. The engineers (as bad as they are) design what they are told to at the price point they are allowed. The part is made as cheaply as possible and as poorly as the failure rate will allow for. GM has a long long history of being a [censored] poorly run company.

 

[JTK]

I'm no GM fan, but get some crafty Attorneys to dig enough and every Corporation has skeletons. Be careful what you wish for.

 

[MolaKule]

Well, I guess I won't buy that Tahoe since the price will go up in order to pay for the Law Suit.

 

[demarpaint]

The engineers always know what's best, and management ran with it, even after knowing the part was bad. It should be interesting to see how they try and weasel out of this one.

 

[Al]

Originally Posted By: JTK
I'm no GM fan, but get some crafty Attorneys to dig enough and every Corporation has skeletons. Be careful what you wish for.

Exactly. For every death or injury here there are 10 others infolving folks who need a warning not to put a plastic bag over their head or need to make sure they read the signs on a step ladder before they use it.

 

[Claud]

Originally Posted By: Blueskies123
Originally Posted By: Mr Nice
They should be held responsible for all the deaths and injuries cause by poor engineering.


but so should the engineers that took the lazy way out of designing the ignition and its replacement that lead to these deaths. Just making millions from shareholders only goes so far, when they imprison a few engineers and managers it will send a real message about quality.


Jail time for the crooked top brass is the only effective sanction imo. Massive fines that have to be met by the people bailing GM out (taxpayers) will have little effect.

Claud.

 

[dishdude]

Yay! Another GM bashing thread.

 

[A_Harman]

Originally Posted By: oil_film_movies
I'd always thought the trick of saying "But we're the NEW GM, not the OLD GM!" was just a lame reason...


That's the line they used on my when I was trying to negotiate an extra week of vacation when I interviewed with them back in 2013. "That previous vacation time that you accrued was with the OLD GM, not the NEW GM."

 

[Al]

Originally Posted By: dishdude
Yay! Another GM bashing thread.

Yea. I had a GM vehicle about 35 years ago that got a flat tire even though it was only a 10 penny nail

 

[edwardh1]

Originally Posted By: Al
Originally Posted By: dishdude
Yay! Another GM bashing thread.

Yea. I had a GM vehicle about 35 years ago that got a flat tire even though it was only a 10 penny nail

my 84 Olds Ciera had a porosity in the block, bad radio,leaking shock absorber, failed high speed fan switch, and about 8 other things fixed under warranty.