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]

Topics: gm, chrysler

If you liked the article, share on:

Comments

Recommended

Here comes Blue Arrow, a Porsche 911 (991) Turbo S tuned by Edo Competition that is even quicker and faster than the 911 GT2 RS. Moreover, it is definitely the...
by - July 24, 2017
Earlier this year, Ford had already begun deliveries of the Ford GT. However, the company has been experiencing some delays at their facility in Canada. This means that the next...
by - July 24, 2017
BMW has given the 2018 1-Series a facelift, and they have just released a ton of new photos and a couple of videos to show us what it’s got. Nevertheless,...
by - July 24, 2017
When Chevrolet came out with the 2018 Equinox last September, the facelifted model was offered in a diesel option for the first time, plus it weighed much less at 400...
by - July 23, 2017
If you are a huge fan of the hardcore GTS version, you probably know that the closest you could get to that model is the upgraded model of the M4...
by - July 23, 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