GM could cite ruling in Chrysler’s class action victory

Article by Christian A., on March 26, 2014

Chrysler Group LLC this month won a class action case that may help General Motors Co. avoid some claims arising from faulty ignition switches installed on its small vehicles. The “old” Chrysler, formally known as Old Carco LLC, built Jeeps in early 2000s fitted with faulty airbags.

In Chrysler’s court-approved sale, the new-co assumed liability for recalls after taking ownership and repaired the airbags. When Chrysler disclosed the airbag recall, a class action was filed against new company in federal district court in Detroit seeking damages for owners of the Jeeps. The class action, however, didn’t seek damages for personal injuries.

United State District Judge Patrick J. Duggan dismissed the case on March 13, saying that owners had no right to make any further claims against new Chrysler since the carmaker had already repaired the Jeeps and promised to reimburse anyone who fixed them before the recall.

Duggan said the case was moot and the plaintiffs lacked “standing,” or eligibility, to file a lawsuit since they no longer had any valid claims. Duggan said that there was no longer a live controversy since the new Chrysler has acknowledged that the vehicles were defective and was making repairs.

On the other hand, the “old” GM, now known as Motors Liquidation Co., built Cobalts with faulty ignition switches before its bankruptcy. Cobalt owners could have filed claims in the bankruptcies had they been aware of the defects. Now, the new GM could cite Duggan’s ruling to defend against lawsuits over defects in the Cobalts. Duggan’s ruling, however, didn’t cover personal-injury claims and didn’t address to the liability of old Chrysler. [source: automotive news - sub. required]

If you liked the article, share on:

Topics: gm, chrysler

Comments

Recommended

TOYOTA GAZOO Racing revealed that it will be participating in the 2018 Tokyo Auto Salon with the theme “Meister's Workshop.” The company will showcase models that have been part of...
by - December 16, 2017
Infiniti has commenced sales of the new 2018 Infiniti QX80 full-size luxury sports utility vehicle. Aside from the standard specs and optional features, potential customers would want to know how...
by - December 15, 2017
If there is one thing that Pagani Automobili and Fiat have in common, it is the fact that they are Italian companies that build and assemble vehicles. There is currently...
by - December 15, 2017
It’s Star Wars fever once again, and the second installation of the trilogy sequel -- “Star Wars: The Last Jedi” -- is finally hitting theaters. Avid fans of the franchise...
by - December 15, 2017
Audi Sport is known for creating high performance versions of some Audi vehicles, with a focus on higher levels of sportiness. So far, its high-performance creations are all powered by...
by - December 14, 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