Consumers May Be Without Remedies Against Auto Manufacturers

The Atlanta consumer and product liability lawyers of Finch McCranie LLP have successfully litigated cases against auto manufacturers for serious injury and death caused by defects in their products. Now, as a result of the bankruptcy of GM and Chrysler, many deserving victims of these defective products may be left without recourse.
The bankruptcy proceedings currently underway will leave consumers currently bringing personal-injury and product-liability lawsuits against Chrysler LLC and General Motors unable to continue their actions and receive compensation for their injuries. In effect, the auto manufactures are getting a free pass for years of incompetent management practices and their victims are being left powerless.
Typically, lawsuits are stayed while a company is in bankruptcy. Plaintiffs and other unsecured creditors are among the last to be paid by a bankrupt company, if they are paid at all. Plaintiff’s lawyers in the Chrysler case objected to the sale of the company’s assets because they suspect that there won’t be any money left, even if they were to win their cases.
Consumer advocacy groups, such as the Center for Auto Safety, are appealing a New York bankruptcy court’s May 31 ruling on the sale of Chrysler’s assets to an entity led by Italy’s Fiat SpAsay. The ruling relieves the new company of responsibility for old losses. Plaintiffs and their families, organized by the non-profit Center for Justice and Democracy are concerned that cases against GM may also be thrown out and are seeking congressional action.
These consumer groups are asking that the bankruptcy system provide for these victims or that the Obama administration fashion a victim’s fund such as was done for the survivors of the 9-11 attacks. One group, the Center for Justice and Democracy, has proposed that both automakers purchase a retroactive insurance policy to cover past, present and future injury claims.
One individual who is affected by these cases is Jeremy Warriner, who has sued Chrysler as a result of a 2005 accident in his Jeep Wrangler. Warriner, 34, alleges that a plastic brake-fluid container rupture during the crash was responsible for a fire that resulted in his legs being amputated. Even if he were to successfully prove his claims, he could be left without a remedy. He is only one of many Americans whose taxpayers dollars are being used to save these mismanaged companies and are being left without any remedy for the past misdeeds of the manufacturers.