Washington Product Liability

GM to Accept Some Product Liability

The Wall Street Journal reports, “General Motors Corp., under pressure from state attorneys general, agreed to assume legal responsibility for injuries drivers suffer from vehicle defects after the auto maker emerges from U.S. bankruptcy protection. The concession means consumers who are injured in car accidents after GM emerges from bankruptcy protection will be able to bring product-liability claims against the government-owned auto maker.”

However, the Washington Post notes, “those with past claims would have to pursue the GM left behind in bankruptcy with nothing but unwanted assets, debts and other liabilities. That means these consumers are likely to recover little, if anything.” Consumers injured in an accident caused by a defect can sue the new company that emerges from bankruptcy even if the car involved in the accident was built by pre-bankruptcy GM, but those who have lawsuits pending against the company that were launched before bankruptcy have effectively lost their cases.