Lawsuits over GM ignition switch recall consolidated in New York

Article by Christian A., on June 12, 2014

Lawsuits filed against General Motors Co. over economic damages resulting from a recall of faulty ignition switches will be consolidated in the Southern District of New York. The cases will be now sent to US District Judge Jesse Furman, according to a ruling by the US Judicial Panel on Multidistrict Litigation. Customers have already filed over 90 lawsuits against GM claiming that their cars lost their value no thanks to the recall.

GM had prayed for the court to have the cases consolidated and transferred to New York. GM is now asking the federal bankruptcy court in Manhattan to determine whether the terms of its bankruptcy sale order shields it from the recall claims.

The bankruptcy sale order led to the creation of "new GM" and largely should shield the new company from liability arising for the pre-bankruptcy conduct of "old GM." The order of the federal judicial panel, however, does not affect lawsuits over personal injuries or deaths allegedly caused by the vehicles.

While lawyers for the plaintiff had also for the consolidation of the cases, they don’t want it to be in New York. They instead suggested that the consolidated case be tried in Los Angeles, Miami, New Orleans, San Francisco or Texas.

The judicial panel, however, said that the Manhattan district was the most appropriate court to handle the consolidated case, since it was the same district as GM's bankruptcy, as well as the bankruptcy of Delphi Automotive Plc.

The panel said in its ruling that several judges in New York, including Furman, already “some familiarity with the common defendant and its prior bankruptcy proceedings."

If you liked the article, share on:

Comments

Recommended

In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Porsche definitely adores variety. You’ll see what we mean if you browse through the official company's website that shows a plethora of various 911 models. And now, the German marque...
by - June 23, 2017
2018 Ford Expedition is on its way to the market, and will be arriving at dealerships this fall. The all-new SUV will come with a new design, new EcoBoost engine,...
by - June 23, 2017
The 2018 Porsche 911 GT2 RS that made its debut not so long ago at the E3 video game expo in Los Angeles has already been sold out according to...
by - June 23, 2017
Mazda seems too far ahead in Safety technology for having four of its vehicles chosen as the safest on the road. Very recently, the Insurance Institute for Highway Safety has...
by - June 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries