Old liability claims dog new GM

[rickaren]

Old liability claims dog new GM

Posted Friday, Oct 2, 2009, 3:04 pm in Employee News

Even though a judge ruled General Motors Co. is not responsible for product liability claims stemming from crashes before the automaker emerged from bankruptcy, frustrated plaintiffs are pursuing legal action anyway, records show, The Detroit News reported.

In a handful of cases from California to Kentucky, lawyers are hoping to find sympathetic local courts willing to challenge a ruling by U.S. District Judge Robert Gerber that protected GM from claims tied to incidents before it emerged from court protection on July 10, legal experts said, the paper reported.. The attorneys also may see an opportunity to use to their advantage any confusion about one of the largest, most complex bankruptcies in history, the News said.

GM agreed to cover future liability claims no matter when the vehicles involved were built, according to records filed in U.S. Bankruptcy Court, the paper said. But claims pending before GM emerged from bankruptcy were classified as bad assets and left behind in bankruptcy when GM sold most of its best assets to the U.S. government to create a new GM, the story said. (Th