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Judge Rules General Motors Can Keep Its Bankruptcy Shield
William Maley posted an article in General Motors
General Motors will not have to face a number of lawsuits and as much as $10 billion in damages over a ignition-switch defect that led to the recall of 2.6 million vehicles. U.S. Bankruptcy Judge Robert Gerber announced yesterday that the bankruptcy shield, which protects new GM from claims originating before its 2009 bankruptcy and restructuring will be upheld. Now this ruling applies to a small number of suits dealing with crashes before July 2009. Most of the suits filed against GM deal with economic losses, such as diminished resale value. Judge Gerber said people claiming economic losses may “assert otherwise viable claims against New GM for any causes of action that might exist arising solely out of New GM’s own, independent, post-acts, so long as those plaintiffs’ claims do not in any way rely on any acts or conduct by Old GM.” GM was happy with Gerber's decision, saying "properly concluded" that claims based on old GM's conduct are barred. Lawyers who are representing plaintiffs against GM aren't pleased with the decision. "This ruling padlocks the courthouse doors. Hundreds of victims and their families will go to bed tonight forever deprived of justice. GM, bathing in billions, may now turn its back on the dead and injured, worry-free," said Bob Hilliard, a Texas lawyer who is representing a number of plaintiffs against GM. Source: The Detroit News -
General Motors will not have to face a number of lawsuits and as much as $10 billion in damages over a ignition-switch defect that led to the recall of 2.6 million vehicles. U.S. Bankruptcy Judge Robert Gerber announced yesterday that the bankruptcy shield, which protects new GM from claims originating before its 2009 bankruptcy and restructuring will be upheld. Now this ruling applies to a small number of suits dealing with crashes before July 2009. Most of the suits filed against GM deal with economic losses, such as diminished resale value. Judge Gerber said people claiming economic losses may “assert otherwise viable claims against New GM for any causes of action that might exist arising solely out of New GM’s own, independent, post-acts, so long as those plaintiffs’ claims do not in any way rely on any acts or conduct by Old GM.” GM was happy with Gerber's decision, saying "properly concluded" that claims based on old GM's conduct are barred. Lawyers who are representing plaintiffs against GM aren't pleased with the decision. "This ruling padlocks the courthouse doors. Hundreds of victims and their families will go to bed tonight forever deprived of justice. GM, bathing in billions, may now turn its back on the dead and injured, worry-free," said Bob Hilliard, a Texas lawyer who is representing a number of plaintiffs against GM. Source: The Detroit News View full article
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When we last checked in on General Motors' Ignition Switch Compensation Fund, almost 300 claims were filed by families due because they were effected by the ignition switch problem. Now according to the Detroit Free Press, some of the claimants are starting to see settlements. The Detroit Free Press reports that Compensation Fund Administrator, Kenneth Feinberg has approved nineteen claims made by families who said the ignition switch caused the death of a loved one. This up from the thirteen deaths that General Motors and federal safety regulators have identified. Feinberg has also approved four claims of those who were seriously injured and eight claims of those who were slightly injured by the ignition switch problem. Source: Detroit Free Press William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
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When we last checked in on General Motors' Ignition Switch Compensation Fund, almost 300 claims were filed by families due because they were effected by the ignition switch problem. Now according to the Detroit Free Press, some of the claimants are starting to see settlements. The Detroit Free Press reports that Compensation Fund Administrator, Kenneth Feinberg has approved nineteen claims made by families who said the ignition switch caused the death of a loved one. This up from the thirteen deaths that General Motors and federal safety regulators have identified. Feinberg has also approved four claims of those who were seriously injured and eight claims of those who were slightly injured by the ignition switch problem. Source: Detroit Free Press William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
The Detroit News is reporting that the National Highway Traffic Safety Administration has ended the daily fine of $7,000 to General Motors after the company turned over the docements and answered the 107 detailed questions about its recall. A Transportation Department spokeswoman said the daily fine ended on June 5th when GM handed over the 315-page internal report from Anton Valukas. “We have what we asked for. The (GM) report is consistent with what we said a few weeks ago, which is there are some culture issues,” said Anthony Foxx, U.S. Transport Secretary. The total amount GM has pay to NHTSA? Around $420,000 which is due on July 4th. Source: The Detroit News William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
The Detroit News is reporting that the National Highway Traffic Safety Administration has ended the daily fine of $7,000 to General Motors after the company turned over the docements and answered the 107 detailed questions about its recall. A Transportation Department spokeswoman said the daily fine ended on June 5th when GM handed over the 315-page internal report from Anton Valukas. “We have what we asked for. The (GM) report is consistent with what we said a few weeks ago, which is there are some culture issues,” said Anthony Foxx, U.S. Transport Secretary. The total amount GM has pay to NHTSA? Around $420,000 which is due on July 4th. Source: The Detroit News William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
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The bad news for General Motors continues to flow in. The Detroit News reported yesterday morning that GM has put two of its engineers, Gary Altman and Ray DeGiorgio on paid leave as part of as part of a continuing internal investigation into the ignition switch recall. The two engineers were singled out during the congressional hearings as members of congress were very dubious as to why the company hadn't fired anyone at the moment. In a statement released today, GM CEO Mary Barra said the decision came after an update from Anton Valukas, the former U.S. attorney who is currently overseeing an independent investigation over the recall. “This is an interim step as we seek the truth about what happened. It was a difficult decision, but I believe it is best for GM,” said Barra. Altman and DeGiorgio played key parts in some of the recalled vehicles. Altman was the program engineering manager on the Chevrolet Cobalt through May 2005, while DeGiorgio was project engineer responsible for the ignition switch on the Cobalt and Ion. DeGiorgio's name first came up when Senator Claire McCaskill D-MO revealed a document with his name authorizing the part change to the ignition. This contradicts testimony given by him last year where he stated he didn't know about the change. Later in the day, GM announced an expansion of the ignition switch recall to include the replacement of the ignition cylinder and if necessary, cut new keys. The automaker says it is aware of several hundred complaints of keys coming out of the ignition while the vehicle is running. Source: The Detroit News, General Motors William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] you can follow him on twitter at @realmudmonster. Press Release is on Page 2 GM to Replace Lock Cylinder During Ignition Switch Recall Second repair added to vehicles recalled earlier DETROIT – General Motors informed the NHTSA today that it is adding ignition lock cylinders to its safety recall of 2.2 million older model cars in the United States. The cylinders can allow removal of the ignition key while the engine is running, leading to a possible rollaway, crash and occupant or pedestrian injuries. As always, owners of manual transmission vehicles should be sure the ignition is in the “Off” position and set to reverse gear with the parking brake set before removing the key. Owners of vehicles with automatic transmission should be sure the vehicle is in “Park” before removing the key. GM is aware of several hundred complaints of keys coming out of ignitions. Searches of GM and government databases found one rollaway in a parking lot that resulted in a crash and one injury claim. The same searches turned up no fatalities. GM has decided to replace the ignition lock cylinders and cut and, if necessary, reprogram new keys. The cars covered are model years: 2003-2007 Saturn Ion 2005-2010 Chevrolet Cobalt 2006-2010 Pontiac Solstice 2007-2010 Pontiac G5 2007-2010 Saturn Sky 2006-2011 Chevrolet HHR All of these cars were recalled in recent weeks for ignition switches that may fail to meet GM’s torque specification. The ignition switch may unintentionally move from the “run” position to the “accessory” or “off” position with a corresponding reduction or loss of power. This risk may be increased if the key ring is carrying added weight or if the vehicle goes off the road or experiences some other jarring event. The timing of the key movement out of the “run” position, relative to the activation of the sensing algorithm of the crash event, may result in the airbags not deploying, increasing the potential for occupant injury in certain kinds of crashes. Until recall repairs are made, it is very important that customers remove all items from their key rings, leaving only the vehicle key. If there is a key fob, it also should be removed from the key ring. GM also announced Thursday that the company expects to take a charge of approximately $1.3 billion in the first quarter, primarily for the cost of recall-related repairs announced in the 2014 calendar year to date and related courtesy transportation. This amount includes the $750 million charge previously announced on March 31. On a preliminary basis, despite the $1.3 billion recall charge, GM currently expects to report solid core operating performance in the first quarter financial results. -
The bad news for General Motors continues to flow in. The Detroit News reported yesterday morning that GM has put two of its engineers, Gary Altman and Ray DeGiorgio on paid leave as part of as part of a continuing internal investigation into the ignition switch recall. The two engineers were singled out during the congressional hearings as members of congress were very dubious as to why the company hadn't fired anyone at the moment. In a statement released today, GM CEO Mary Barra said the decision came after an update from Anton Valukas, the former U.S. attorney who is currently overseeing an independent investigation over the recall. “This is an interim step as we seek the truth about what happened. It was a difficult decision, but I believe it is best for GM,” said Barra. Altman and DeGiorgio played key parts in some of the recalled vehicles. Altman was the program engineering manager on the Chevrolet Cobalt through May 2005, while DeGiorgio was project engineer responsible for the ignition switch on the Cobalt and Ion. DeGiorgio's name first came up when Senator Claire McCaskill D-MO revealed a document with his name authorizing the part change to the ignition. This contradicts testimony given by him last year where he stated he didn't know about the change. Later in the day, GM announced an expansion of the ignition switch recall to include the replacement of the ignition cylinder and if necessary, cut new keys. The automaker says it is aware of several hundred complaints of keys coming out of the ignition while the vehicle is running. Source: The Detroit News, General Motors William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] you can follow him on twitter at @realmudmonster. Press Release is on Page 2 GM to Replace Lock Cylinder During Ignition Switch Recall Second repair added to vehicles recalled earlier DETROIT – General Motors informed the NHTSA today that it is adding ignition lock cylinders to its safety recall of 2.2 million older model cars in the United States. The cylinders can allow removal of the ignition key while the engine is running, leading to a possible rollaway, crash and occupant or pedestrian injuries. As always, owners of manual transmission vehicles should be sure the ignition is in the “Off” position and set to reverse gear with the parking brake set before removing the key. Owners of vehicles with automatic transmission should be sure the vehicle is in “Park” before removing the key. GM is aware of several hundred complaints of keys coming out of ignitions. Searches of GM and government databases found one rollaway in a parking lot that resulted in a crash and one injury claim. The same searches turned up no fatalities. GM has decided to replace the ignition lock cylinders and cut and, if necessary, reprogram new keys. The cars covered are model years: 2003-2007 Saturn Ion 2005-2010 Chevrolet Cobalt 2006-2010 Pontiac Solstice 2007-2010 Pontiac G5 2007-2010 Saturn Sky 2006-2011 Chevrolet HHR All of these cars were recalled in recent weeks for ignition switches that may fail to meet GM’s torque specification. The ignition switch may unintentionally move from the “run” position to the “accessory” or “off” position with a corresponding reduction or loss of power. This risk may be increased if the key ring is carrying added weight or if the vehicle goes off the road or experiences some other jarring event. The timing of the key movement out of the “run” position, relative to the activation of the sensing algorithm of the crash event, may result in the airbags not deploying, increasing the potential for occupant injury in certain kinds of crashes. Until recall repairs are made, it is very important that customers remove all items from their key rings, leaving only the vehicle key. If there is a key fob, it also should be removed from the key ring. GM also announced Thursday that the company expects to take a charge of approximately $1.3 billion in the first quarter, primarily for the cost of recall-related repairs announced in the 2014 calendar year to date and related courtesy transportation. This amount includes the $750 million charge previously announced on March 31. On a preliminary basis, despite the $1.3 billion recall charge, GM currently expects to report solid core operating performance in the first quarter financial results. View full article
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Last month, the National Highway Traffic Safety Administration (NHTSA) sent General Motors a 27 page document with 107 questions that dealt with the massive ignition switch recall that affects 2.8 million vehicles worldwide and is linked to 13 deaths. NHTSA gave the company a deadline of April 3rd to finish answering all of the questions. Well its a week after the deadline, NHTSA has announced it will fine GM $7,000 per day starting on April 3rd because the company hasn't answered all of the questions and being slow to respond. At this current time, the total fine stands at $28,000. In a letter released last night, NHTSA said General Motors hasn't answered a third of its questions, including several that required no special technical expertise such as what data it looked at when deciding not to issue a recall before this year. "These are basic questions concerning information that is surely readily available to GM at this time. It is deeply troubling that two months after recalling the vehicles, GM is unwilling or unable to tell NHTSA whether the design of the switch changed at any other time," said the agency. NHTSA also warned that it could ask the Department of Justice to force GM's hand. Now NHTSA does state that General Motors sent the agency a note on March 20th saying that it would need more time to answer the questions. Then on on April 4, GM told the agency that it wouldn't be able to answer all the questions since it has an ongoing outside investigation by former U.S. attorney Anton Valukas. He is looking into GM's handling of the recall that goes back to 2001. As you might have guess, NHTSA isn't exactly pleased about this. “You explained that GM did not fully respond because an investigation by Anton Valukas and his team was in progress. This was the first time GM had ever raised Mr. Valukas’ work as a reason GM could not fully provide information to NHTSA in this timeliness investigation. Mr. Valukas’ investigation is irrelevant to GM’s legal obligation to timely respond to the special order and cooperate fully with NHTSA,” said NHTSA general counsel O. Kevin Vincent. General Motors spokesman Greg Martin tells The Detroit News the company has been fully cooperative by handing over 271,000 pages of information. “GM has produced nearly 21,000 documents totaling over 271,000 pages through a production process that spans a decade and over 5 million documents from 75 individual custodians and additional sources. Even NHTSA recognizes the breadth of its inquiry and has agreed, in several instances with GM, to a rolling production schedule of documents past the April 3rd deadline. We believe that NHTSA shares our desire to provide accurate and substantive responses. We will continue to provide responses and facts as soon as they become available and hope to go about this in a constructive manner. We will do so with a goal of being accurate as well as timely,” said Martin. Martin didn't say if the company would contest the fine or not. Source: Automotive News (Subscription Required), The Detroit News, Motoramic William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
Last month, the National Highway Traffic Safety Administration (NHTSA) sent General Motors a 27 page document with 107 questions that dealt with the massive ignition switch recall that affects 2.8 million vehicles worldwide and is linked to 13 deaths. NHTSA gave the company a deadline of April 3rd to finish answering all of the questions. Well its a week after the deadline, NHTSA has announced it will fine GM $7,000 per day starting on April 3rd because the company hasn't answered all of the questions and being slow to respond. At this current time, the total fine stands at $28,000. In a letter released last night, NHTSA said General Motors hasn't answered a third of its questions, including several that required no special technical expertise such as what data it looked at when deciding not to issue a recall before this year. "These are basic questions concerning information that is surely readily available to GM at this time. It is deeply troubling that two months after recalling the vehicles, GM is unwilling or unable to tell NHTSA whether the design of the switch changed at any other time," said the agency. NHTSA also warned that it could ask the Department of Justice to force GM's hand. Now NHTSA does state that General Motors sent the agency a note on March 20th saying that it would need more time to answer the questions. Then on on April 4, GM told the agency that it wouldn't be able to answer all the questions since it has an ongoing outside investigation by former U.S. attorney Anton Valukas. He is looking into GM's handling of the recall that goes back to 2001. As you might have guess, NHTSA isn't exactly pleased about this. “You explained that GM did not fully respond because an investigation by Anton Valukas and his team was in progress. This was the first time GM had ever raised Mr. Valukas’ work as a reason GM could not fully provide information to NHTSA in this timeliness investigation. Mr. Valukas’ investigation is irrelevant to GM’s legal obligation to timely respond to the special order and cooperate fully with NHTSA,” said NHTSA general counsel O. Kevin Vincent. General Motors spokesman Greg Martin tells The Detroit News the company has been fully cooperative by handing over 271,000 pages of information. “GM has produced nearly 21,000 documents totaling over 271,000 pages through a production process that spans a decade and over 5 million documents from 75 individual custodians and additional sources. Even NHTSA recognizes the breadth of its inquiry and has agreed, in several instances with GM, to a rolling production schedule of documents past the April 3rd deadline. We believe that NHTSA shares our desire to provide accurate and substantive responses. We will continue to provide responses and facts as soon as they become available and hope to go about this in a constructive manner. We will do so with a goal of being accurate as well as timely,” said Martin. Martin didn't say if the company would contest the fine or not. Source: Automotive News (Subscription Required), The Detroit News, Motoramic William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
