Hawaii Personal Injury Blog - GM

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

Sad Day For Americans: Judge Allows GM to Escape Payments to Victims of Injury and Death From Defective GM Cars

Wayne Parsons — Wed, 08 Jul 2009 12:33:23 GMT

If the damage done to the American economy, American workers and all of us by the inept and perhaps crooked management at General Motors (GM), The U.S. Treasury and now a federal judge have told these wealthy idiots that they don't have to pay victims of defective GM cars. That's right. Hundreds of injured and dead Americans who have claims against GM for the defective cars the caused their injury or death. Taxpayers will pay for future medical bills and the loss of life will just be tough luck to the innocent victims. For a President who renewed a sense of Justice in his election, President Obama has sided with corporate giants and demonstrated lack of concern for the injured and the poor in the first six months of his Presidency.

This weekend, a bankruptcy judge approved the sale of GM – leaving those currently injured by defective vehicles in the dust. Last week, the courts provided a partial win for GM vehicle owners by saying those injured in a defective vehicle from the date of sale forward can pursue a claim. However, all pending cases are wiped out by the bankruptcy agreement, including current and future asbestos cases.

See my earlier articles on this subject:

Treasury negotiating on GM's product liability.

Judge approves GM asset sale, clearing way for restructuring.

I am encouraging Members of Congress in the House and Senate to restore the rights of people injured by GM and Chrysler. Because legislation will be the only way to ensure everyone has the right to bring a case against Chrysler or GM, HR 3088, the Jeremy Warriner Consumer Protection Act of 2009 has been introduced in the House of Representatives.

Jeremy Warriner lost his legs when he was in a tragic auto accident. Investigators discovered the plastic brake fluid container was defective, and caused a major explosion. Jeremy would have walked away from the accident had it not been for this defect. This bill will require an automobile manufacturer that the Federal Government has an ownership interest in or that has an outstanding loan from the Federal Government to purchase liability insurance from an insurance company, and I will be working hard to get this bill passed. I will keep bringing you progress updates.

Congress continues to consider health care reform following recess with the Senate HELP Committee trying to complete their mark-up this week. National news focuses on this subject. Next week, the House of Representatives will begin considering health care legislation in three committees.

Originally posted at InjuryBoard by Wayne Parsons

Judge approves GM asset sale, clearing way for restructuring.

Wayne Parsons — Mon, 06 Jul 2009 14:29:29 GMT

On the front page of its business section the New York Times (7/6, B1, De La Merced) reports that US Bankruptcy Court Judge Robert E. Gerber "approved a plan by General Motors late on Sunday to sell its best assets to a new, government-backed company, a crucial step for the automaker to restructure and complete its trip through bankruptcy court." Gerber's decision "came after three days of hearings to address the 850 objections to the restructuring plan and after he had received a revised sale order from G.M.'s lawyers. In his 95-page opinion, Judge Gerber wrote that he agreed with G.M.'s main contention: that the asset sale was needed to preserve its business in the face of steep losses and government financing that is scheduled to run out by the end of the week."

The Wall Street Journal (7/6, B1, Spector) adds that Gerber's decision "removes a key hurdle to the auto maker's plan to exit bankruptcy." Gerber "rejected pleas from dissident bondholders and product-liability claimants who objected to GM's plans. The judge said the only alternative to GM's plans would be liquidation, 'a disastrous result for GM's creditors, its employees, the suppliers who depend on GM for their own existence, and the communities in which GM operates. In the event of a liquidation, creditors now trying to increase their incremental recoveries would get nothing.' The ruling paves the way for GM's government-brokered restructuring, in which the auto maker will move its 'good' assets -- including automotive brands Chevrolet, Cadillac, Buick and GMC -- to a new company owned by the U.S. Treasury. The sale approval clears the way for GM to potentially exit bankruptcy in less than two months."

The Detroit News (7/6, Snell, Shepardson) reports that the move could result in a "stunningly swift emergence from Chapter 11 bankruptcy," noting that "once the sale closes, which is not expected before noon on Thursday, the 100-year-old automaker will be majority-owned by the U.S. Treasury Department. The government will have a 60.8 percent stake after providing more than $50 billion in financial aid to keep the iconic American company from liquidating and becoming perhaps the greatest industrial failure in the nation's history."

I have previously reported on objections to GM's plan by state attorney generals:

State AGs challenging GM's liability plan - by Wayne Parsons

The AP (7/6, Fowler) reports that "attorneys for some of GM's bondholders, consumer groups and individuals with lawsuits against the company argued in court for its rejection, saying that their needs were being pushed aside in favor of the interests of GM and the government. It was unclear early Monday if any of those groups planed to appeal Gerber's decision."

Bloomberg News (7/6, Scinta), MarketWatch (7/6), and Reuters (7/6, Chasan, Allen) also report on Gerber's ruling.

Originally posted at InjuryBoard by Wayne Parsons

GM agrees to take responsibility for future liability claims.

Wayne Parsons — Mon, 29 Jun 2009 14:57:10 GMT

The AP (6/28, Fowler) reported General Motors "has agreed to take on responsibility for future product liability claims, removing what could have been a sizable roadblock" on the company's way to a "quick sale of its assets" and emergence from bankruptcy. GM "wants to sell the bulk of its assets to a new company and leave behind unprofitable assets and other liabilities such as product-related lawsuits." But in a "concession to consumer groups and state officials who had threatened to block the sale because of product liability concerns, the new company will now assume responsibility for future claims involving vehicles made by the old company."

The Wall Street Journal (6/29, A4, Spector) reports that the agreement "represents a partial victory for more than a dozen state attorneys general and several consumer-advocacy groups."

The Washington Post (6/29, Tse, Marr) reports, "Those with past claims would have to pursue the GM left behind in bankruptcy with nothing but unwanted assets, debts and other liabilities. That means these consumers are likely to recover little, if anything." On Friday "Rep. André Carson (D-Ind.) introduced legislation that would require automakers to purchase liability insurance if they are owned by the federal government or have federal loans. This insurance must protect against past and future claims, even after a bankruptcy filing." Bloomberg News (6/28, Lui) also covered the story.

The New York Times (6/28, A20, De La Merced) reported GM and the Obama Administration's auto task force "have been negotiating with more than a dozen state attorneys general who have objected" to GM's asset sales plan.

The Washington Post (6/27, Dennis, Tse, Marr) reported earlier on the talks leading to the agreement.

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

Consumer groups, trial attorneys criticize GM, Chrysler bankruptcy plans.(2)

Wayne Parsons — Wed, 03 Jun 2009 08:08:52 GMT

The Hill (6/3, Swanson) reports, "Consumer groups and trial lawyers are crying foul over the Obama administration's bankruptcy plans for General Motors and Chrysler" because "those plans would extinguish all ongoing auto accident claims that blame a death or serious injury on a defective GM or Chrysler vehicle." According to Clarence Dilow, executive director of the Center for Auto Safety, "the plans are unusual in that they would prevent anyone from bringing a future liability claim against GM or Chrysler if a car already purchased from either company is defective and results in an accident causing death or serious injury." Also, he added, "it was...unusual for no money to be set aside for liability claims."

On the Wheels blog on the New York Times website (6/3) Christopher Jensen writes, "In approving the sale of most of Chrysler's assets to a new company, run by Fiat, over the weekend, Judge Arthur J. Gonzalez also granted the automaker's request that the new company not be held liable for future product-liability problems involving current owners" which "means people who own a Chrysler, Dodge or Jeep have lost their right to sue if they are injured by a safety defect." He says that consumer groups are concerned that "people who already have been injured in accidents and have filed suits against Chrysler, asserting that a vehicle had a safety defect" will not get any money from the carmaker even if they "win in court."

ClickonDetroit (6/3) also covers the story and reports, "It's like slamming the courthouse door in the victim's face." Consumer groups want the "new Chrysler" to "at least create a victim's fund."

Originally posted at InjuryBoard by Wayne Parsons

Consumer groups, trial attorneys criticize GM, Chrysler bankruptcy plans.

Wayne Parsons — Wed, 03 Jun 2009 08:08:45 GMT

ClickonDetroit (6/3) also covers the story and reports, "It's like slamming the courthouse door in the victim's face." Consumer groups want the "new Chrysler" to "at least create a victim's fund."

Originally posted at InjuryBoard by Wayne Parsons

As GM declares bankruptcy, Obama moves to reassure consumers.

Wayne Parsons — Tue, 02 Jun 2009 09:18:49 GMT

Media outlets last night and this morning focused much of their coverage of GM's bankruptcy on the government's 60% stake in the company, and on President Obama's assurances that he wants the Federal role in GM to be temporary. In addition to generating extensive cable commentary and front-page headlines across the nation, GM's descent into bankruptcy led all three network newscasts, which devoted a combined 19 minutes and 40 seconds to the story. The CBS Evening News (12/6, lead story, 3:45, Couric) noted that GM is "now owned largely by you and me, the taxpayers." The Federal government "will take a 60% ownership stake, and the goal is to have it out of bankruptcy within 90 days." The President "sounded a bit like salesman-in-chief today -- telling Americans 'if you're considering buying a GM car, your warranties will be backed by the government.'" CBS (Mason) showed Obama saying, "Our goal is to get GM back on its feet, take a hands-off approach and get out quickly."

The New York Times (6/2, A1, Vlasic, Bunkley) reports on its front page that "Obama said the government would take a hands-off approach to managing G.M., and would divest its stock in the company as soon as it could. But that is likely years away." The Times notes that "once G.M. has finished cutting jobs, brands and models, it could fall behind Ford in terms of sales."

Chamber opposes government ownership of GM. The Financial Times (6/2, Braithwaite) reports that "the US Chamber of Commerce, the biggest business group, came out strongly against government ownership on Monday, arguing that there were already examples of undue state influence and 'clear examples of market manipulation and protectionism' at GM and Chrysler." Chamber's Thomas Donohue said "he was worried about 'the potential for governments and unions to influence production, product, workforce, and management decisions in ways that could jeopardize the automakers' chances for survival.'"

Chrysler deal approved by bankruptcy judge, Fiat protected from liability suits. The Detroit Free Press (6/1, Gardner) reported, "Chrysler's transformation from bankruptcy to a new company owned by Fiat, U.S. and Canadian taxpayers and UAW retirees, whose health care benefits could shrink in coming years, has been approved by U.S. Bankruptcy Judge Arthur Gonzalez." However, "Fiat will be protected from any product liability lawsuits arising from alleged flaws in Chrysler vehicles sold prior to the sale's closing later this month. Anyone filing such lawsuits will only be able to recover from the limited assets of the old company."

Originally posted at InjuryBoard by Wayne Parsons

Stalled suits against drugmakers proceeding after Supreme Court preemption decision.

Wayne Parsons — Thu, 30 Apr 2009 12:16:10 GMT

Bloomberg News (4/30, Fisk, Feeley) reports, "Just two months after the U.S. Supreme Court decided patients can sue drugmakers over injuries from medicines approved by the government, long-stalled lawsuits against GlaxoSmithKline Plc and Bristol-Myers Squibb Co. are again moving toward trials." On March 4, the Supreme Court ruled that "federal regulatory approval of a medicine and information about side effects doesn't shield drugmakers from claims that patients and doctors weren't adequately warned." Justice John Paul Stevens, writing for the majority, stated that "Congress did not intend FDA oversight to be the exclusive means of ensuring drug safety and effectiveness." The ruling has "already affected more than 250 lawsuits involving at least 10 companies that were in limbo before the ruling." Glaxo has "settled two cases on claims its antidepressant Paxil can make patients suicidal, after judges set trials citing the Wyeth decision." Meanwhile, "a group of Bristol-Myers lawsuits over the blood-thinner Plavix may now proceed to trial in federal court."

Originally posted at InjuryBoard by Wayne Parsons