General Motors Recall and Bankruptcy Protection

GMAs of the middle of May 2014, General Motors has recalled over 11 million vehicles year-to-date. Many of the recalls have been issued as a result of a faulty ignition device that has been blamed for over a dozen deaths. It is expected to take several months before owners see their vehicles restored to safety binary trading south africa.

Though GM has indicated that they are working on a compensation plan for victims and family members of those who were injured or killed as a result of the defect, the company has been resistant to the idea of providing compensation for those victims who have suffered economic losses as a result of the loss of value of their vehicles. Therefore, it’s important to find a competent car accident lawyer who will be able to help you.

Using Chapter 11 Bankruptcy To Shield From Financial Responsibility

General Motors has already filed papers in court to try to utilize bankruptcy laws to protect themselves from liability for paying for financial losses suffered by owners of their vehicles. GM filed for bankruptcy protection in 2009. The company accepted $50 billion dollars in taxpayer money in order to stay afloat during those proceedings.

However, despite the fact that the American public came to the company’s rescue, faced with the prospect of having to reimburse that same public for losses incurred as a result of the company’s errors, the auto giant is attempting to shield itself with the terms of its reorganization in order to block themselves from having to pay thousands of claims for flaws that occurred prior to the bankruptcy.

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Shaking Off Responsibility

Though there may be legal standing for General Motors’ currently expressed position regarding whether it is responsible for liabilities that occurred prior to their reorganization, the company also needs to be mindful of the tremendous amount of attention that the recalls have garnered, and the potential public relations fallout of abandoning the public that funded their continued operations.

 

There are some who believe that the fact that General Motors has already released a statement regarding their refusal to compensate those who have been financially harmed may simply be a warning to those planning to file lawsuits not to file unreasonable claims. If you are located in Houston, hire a Houston personal injury lawyer to help file your case.  Go to mesothelioma lawyer center to get more information on personal injury.

Reimbursing Victims and Their Families

Though the Chapter 11 arguments will likely be used to defend against economic claims, the company has made it clear that they will be providing compensation for those who have been affected by crashes attributed to the defect. Get more information about GM as well as personal injury cases at http://www.danzigerdellano.com