Judge Shields ‘New GM’ From ‘Old GM’ Lawsuits


General Motors will be protected from lawsuits for claims originating before its 2009 restructuring.

A federal bankruptcy judge has ruled that vehicle owners will not be able to sue “New GM” for issues that date back to before the company filed for bankruptcy in 2009.  GM has accepted legal liability for crashes and injury claims on accidents that took place after June 2009, even if the vehicles were built before the GM bankruptcy. The ruling does impact a small number of claims stemming from the ignition switch recall, but the vast majority of claims are for economic losses, such as diminished resale value.

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During the ruling, U.S. Bankruptcy Judge Robert 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.” The American automaker had asked the judge to shield it from legal liabilities tied to the Old GM and the result of the ruling could stall over 50 lawsuits in the U.S. that are linked to the ignition switch recall.

[Source: The Detroit News]

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