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GM to Defend Against Its Own Liability Concession on Recalls
General Motors Co. has long insisted it is not liable for defective cars made by "old GM" before the company was restructured in 2009.
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General Motors Co. has long insisted it is not liable for defective cars made by "old GM" before the company was restructured in 2009. But the company will be in front of its bankruptcy judge today to defend itself from an agreement it made to accept such responsibility, according to Reuters.
GM has argued it is specifically shielded by the terms of its court-ordered restructuring against claims involving old GM. But Reuters says the company facilitated its restructuring more than five years ago by agreeing at the last moment to accept legal responsibility for lawsuits involving future crashes of vehicles made by old GM.
One plaintiff's attorney tells the news service GM opened itself to such lawsuits in 2010. That's when the company agreed to accept the legal liability in the death of 29-year-old driver who died in a crash after the ignition switch in her 2005 Chevrolet Cobalt sedan cut off the engine at highway speed.
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