Hawaii Personal Injury Blog - Chrysler

Chrysler Bankruptcy Update: Car Giant To Accept More Product Liability Claims.

Wayne Parsons — Fri, 28 Aug 2009 18:47:49 GMT

The AP (8/27) reported, "Chrysler Group LLC said Thursday it will accept product liability claims in a broader number of cases than originally planned in its reorganization under bankruptcy protection. The automaker said it will now consider product-related lawsuits from consumers involved in accidents that occurred after Chrysler emerged from bankruptcy protection in June that involve vehicles manufactured by the old company." Joanne Doroshow, "executive director of the Center for Justice and Democracy, said Chrysler had 'responded to pressure from injured victims and consumer groups and we commend them for taking this important step to protect public safety.'"

The Detroit News (8/27, Shepardson) reported that Chrysler senior vice president for external affairs and public policy John Bozzella said, "While Chrysler Group still faces challenges, we are confident today that the future viability of the company will not be threatened if we assume these obligations." Chrysler "noted its approach is now consistent with that taken by General Motors Co. as part of its bankruptcy process, Chrysler said. But Chrysler will not accept liability for lawsuits filed for incidents filed before June 10."

Bloomberg News (8/27, Rosenblatt) reported that as part of the original bankruptcy agreement, Chrysler had "agreed to assume liability only for cars sold by the newly formed company."

The Wall Street Journal (8/27, Linebaugh) and Reuters (8/27, Bailey) also covered the story.

Originally posted at InjuryBoard by Wayne Parsons

Hawaii Consumer Alert: GM and Isuzu Truck Recall Raises Concerns Because Bailout Eliminates Product Liability Claims For Injury or death

Wayne Parsons — Thu, 06 Aug 2009 17:41:04 GMT

In a report in U.S. News & World Report a pickup truck recall is initiated by automakers.

A brake light defect in General Motors trucks could lead to an an accident. GM is recalling about 185,000 small Chevrolet, GM and Isuzu pickup trucks to correct the defect.

Affected vehicles include the 2004-2009 Chevrolet Colorado, the 2004-2009 GMC Canyon, the 2006 Isuzu I-280, the 2006 Isuzu I-350, the 2007-2008 Isuzu I-290 and the 2007-2008 Isuzu I-370.

GM filed a defect notice with the National Highway Traffic Safety Administration (NHTSA):

"Some of these vehicles have a brake lamp switch that may not work as designed due to contamination in the switch. This could cause the simultaneous loss of all brake lamps, or cause all of the brake lamps to stay on continuously. Both of these conditions could fail to warn others of the driver's intentions and could lead to a vehicle crash."

Hawaii is on the list of sates affected by the recall: Alabama, Arizona, Florida, Georgia, Hawaii, Louisiana, Mississippi, Nevada, New Mexico, Puerto Rico, South Carolina, Texas, the U.S. Virgin Islands and Utah.

If you own such a vehicle the dealer will replace the brake lamp switch free of charge. The automaker is designing a better part to fix the problem and predicts having it available early next year. So for now the defective switch will be replaced and then in February 2010 Dealers will contact owners for replacing that switch with the new improved switch. According to a GM spokesman

"A special coverage for vehicles registered in all other states will be implemented in the same time frame. In the interim, owners who experience the failure can obtain a free repair, however they will be required to return with the new design part becomes available."

To get more information contact Chevrolet at (800) 630-2438 , GMC at (866) 996-9463 , and Isuzu at (800) 255-6727.

Originally posted at InjuryBoard by Wayne Parsons

Treasury negotiating on GM's product liability.

Wayne Parsons — Fri, 26 Jun 2009 14:26:01 GMT

The Wall Street Journal (6/26, B1, Spector, McCracken) reports on the front page of its Marketplace section, "The U.S. Treasury Department is negotiating with more than a dozen state attorneys general to roll back two key features of General Motors Corp.'s bankruptcy plan that would have wiped out billions of dollars in potential claims from car-accident victims and closed auto dealers." Under the current reorganization plan, "hundreds of car-accident victims have lawsuits against GM in various stages of the legal process that would be effectively washed away." In opposing GM's product-liability plan, "state attorneys general are raising a number of complex legal issues, ranging from the power of federal bankruptcy courts to supercede state law to constitutional due-process rights of Americans to sue GM if they're injured by the auto maker's vehicles in the months and years ahead."

In an informative analysis of the impact of this bailout on people injured in defective automobiles Cecelia Prewett of the American Association of Justice (AAJ) sheds light on this judicial and Congressional problem:

Protecting Consumers in Wake of Chrysler / GM Bankruptcy

GM wins financing, "tort czar" denied. The Detroit Free Press (6/25, Hyde) reported, "General Motors won approval Thursday to use up to $33.3 billion to pay for its bankruptcy, after making a few changes to settle technical objections." US Bankruptcy Court Judge Robert Gerber also "denied a request from an unofficial committee of people with asbestos-related claims against GM to appoint a 'tort czar' that would oversee all future claims against the old GM, not just those related to asbestos."

The Detroit News (6/26, Gardiner) reports that consumer victims and asbestos claimants "withdrew petitions for their own independent bargaining committees on Thursday."

Comcast pulls liability ads. The Washington Post (6/26, Marr, Tse) reports, "Comcast pulled a cable television advertisement criticizing General Motors' bankruptcy plan earlier this week after the automaker challenged the spot's claims. The ad was paid for by a group of people injured in GM and Chrysler vehicles, who say the taxpayer-funded restructurings should not allow the automakers to escape liability claims for injuries or deaths that occurred before the bankruptcy filings."

Originally posted at InjuryBoard by Wayne Parsons

Lawyers Voice Objections to Chrysler Bankruptcy Plan.

Wayne Parsons — Fri, 22 May 2009 17:24:22 GMT

The Detroit News (5/21, Priddle, Shepardson) reported, "A flurry of objections in the Chrysler LLC bankruptcy case continue to be filed in advance of a hearing next week to approve a tie-up with Fiat SpA." A motion was filed by attorneys for "Public Citizen and other plaintiffs...seeking to prevent Chrysler from dropping personal injury lawsuit and product liability claims in bankruptcy." In addition, they "argue that the inability to sue over vehicle problems could drop the resale value of Chrysler vehicles."

Injured customers speak out on potential terms of Chrysler bankruptcy. ABC-TV (5/21, Stark) reported that lawyer "Scott Nealey...fears that the terms of Chrysler's bankruptcy proceedings may mean the lawsuit" by his client against the car company "could get thrown out." His client, Farbod Nourian "is speaking at a news conference designed to put pressure on the government to ensure he and others like him do not lose their day in court." Nealey said, "Chrysler has asked for the sale to be free and clear." He added, "They take all the assets and they have no obligations to people who have Chrysler vehicles right now. So if you have a design defect with Chrysler and it is something the company would normally fix, or you have a personal injury, you would be left with no remedy whatsoever."

The Indianapolis Star (5/21, Mcfeely) reported, "Jeremy Warriner's legal battle against Chrysler -- over an accident that cost him his legs -- seemed about to end this month." However, "just six days before a May 5 mediation date in his personal injury case, the struggling company filed bankruptcy under a plan brokered by the Obama administration -- a plan that could prohibit Warriner and hundreds of others from pursuing legal claims." He plans to testify against those terms "before the House Judiciary Committee in Washington." He said, "My message is that people who have been injured deserve the opportunity to face Chrysler in court or in mediation."

Originally posted at InjuryBoard by Wayne Parsons