General Motors
Begins Talks with Claim Victims
By: James Bizzieri
The car manufacturing company General Motors (GM) is under extreme
scrutiny because of car accidents caused by a defective ignition switch that
was installed in certain GM vehicles. This PR nightmare has been amplified by
the fact that GM admitted to having known about the defect for over a decade
before the defect became public knowledge. Currently, the company has been
embroiled in multiple legal proceedings over the defect. A recent meeting
between GM’s attorneys, claim victims and their families is considered to be
the first step in an attempt to resolve this complex personal injury suit. Our Auto Accident attorneys are careful watching the evolution of this issue and
what effects it will have on personal injury law.
The Claims Against General Motors
The main class action
personal injury suit against GM revolves around a vehicle ignition switch defect
discovered in GM cars. If jostled, the defective switch can sometimes turn off
the power while the GM vehicle is still in motion. This power shut off also
disables the vehicle’s air bags, and prevents the vehicle’s brakes and power
steering systems from functioning properly.
The revelation that this defect had caused car accidents, and that GM
knew about the defect for over 10 years, has resulted in a public relations nightmare
for the company. Around 2.6 million GM cars carrying the defective ignition
part have been recalled by the company. It is estimated it will cost GM
billions of dollars to both repair the recalled cars and to also defend claims
against GM for the defective ignitions. Though not revealing its criteria for
counting deaths caused by the defect, GM estimates that at least 32 accidents
and 13 deaths have been caused by the car defect.
Currently, there is a class action suit that has been filed
against GM because of the defective ignition. GM is technically insulated from
legal claims stemming from before its July 10, 2009 bankruptcy reorganization.
However, GM officially stated that this distinction will not be applied to
death claims and personal injury suits. This distinction is significant because
GM is facing an avalanche of litigation from disgruntled GM customers, while
also fending off federal investigations from Congress, the Justice Department
and Securities and Exchange Commission.
The Meeting With the Families of Claimants
At the beginning of May GM’s head attorney met with the families
of claim victims and their attorneys for over 4 hours. The intended goal of
this meeting was to begin to map out a process for providing compensation for victims
of the faulty switch. While specific dollar amounts for compensation were not
discussed this meeting allowed the victims' attorneys to illustrate both the
quantity and quality of the victims' personal injury claims. The fact that GM
is opening talks with claimants and their families is significant. It comes at
a time when GM has been doing everything in its power to have the courts throw
out other class actions suits that request that GM provide compensation for the
economic losses arising from the diminished value of the recalled cars.
Though the meeting between
legal counsel and the claim victims and their families may not seem like a
significant event, it represents GM’s most concrete attempt to finally begin
the process of compensating the victims of their defective vehicle ignition. If
you think you have a personal injury claim you should contact the personal injury attorneys here at the Bizzieri Law
Offices in Chicago, IL today.
