How Automaker Bankruptcies Will Affect Injury Claims
Friday, June 26th, 2009As a personal injury lawyer in Missouri, the Four State area, I am concerned about how the auto industry bankruptcies of Chrysler and General Motors (GM) might affect legitimate auto accident injury claims because of the companies’ bankruptcy filings.
If you look at the fact that approximately 40 million GM and Chrysler cars are driving on American roads and you consider the fact that nearly half of the claims against automakers in the last five years involved these two companies, it’s hard not to wonder what is going to happen to innocent people injured by some problem, defect or even deceit if they have no recourse against these auto giants.
PRNewsWire and other news agencies carried a story about a safety report addressing this problem under this alarming headline Study Predicts More Than 3,400 Americans Will Be Injured or Killed by Defective GM or Chrysler Cars in First Year of Post-Bankruptcy Era. The first paragraph reads “ A new report predicts that defective General Motors and Chrysler vehicles sold before the bankruptcies will continue to cause deaths and injuries long after the companies emerge as new entities. Based on data provided by both automakers to the National Highway Traffic Safety Administration (NHTSA), more than 3,400 Americans will be injured or killed by a defective Chrysler or GM vehicle during the first year of the post-bankruptcy era.
The report entitled “Public Safety at Risk: Bankruptcies Leave Legacy of Defects, Injuries and Deaths,” by Safety Research & Strategies, also forecasts fewer recalls for vehicles built by the old companies, thereby further decreasing public safety. Safety Research & Strategies, Inc.’s web site states that it provides “research, investigation, analysis, strategies, and advocacy on safety matters. With a particular specialty in motor vehicle issues . . . (they) work with clients to help them understand the history surrounding issues that cause injuries and fatalities, to resolve safety issues, and to promote safety and reduce harm. For more information about the report or Safety Research & Strategies, visit www.safetyresearch.net.
Consequences and Implications
I think we all still remember the Ford Explorer / Firestone Tire horror that caused a number of tragic wrongful deaths and disabilities that could have been prevented had either or both companies acted responsibly. Both Ford and Firestone knew there were problems and negligently allowed those vehicles to remain on the road. (Perhaps those of us in Missouri will take longer to forget because the Explorers were assembled in Hazelwood, Missouri until the plant closed in 2006.)
Justice in this matter can never be adequately served because there is no adequate compensation for the loss of life and limb and quality of life – especially in light of the manufacturers allowing the deaths and disabilities and damages to happen — but at least those affected were given monetary compensation for their losses, and the companies were forced to pay punitive damages as well.
I hesitate to think about a scenario in which the companies at fault would not or could not be held responsible. Thankfully, attorneys general from a number of U.S. states have filed an objection to prevent GM from dodging liability claims during its bankruptcy period. We will keep our readers informed as this matter proceeds.