Commentary on General Motors
July 07, 2009
Topic: Miller Weisbrod, LLP Blog
The Federal bankruptcy judge in New York has approved the sale of GM's assets to a new company created by the federal government. That is good news, in the sense that it will allow GM to continue operating as a business. For the employees of GM and all the different companies that work with GM, the continuing of the business is vital.
However, as the Wall Street Journal reports (LINK), part of that sale will allow for the dismissal of product liability lawsuits against GM. That means that consumers who were injured or killed in GM vehicles, and who filed lawsuits against GM, will have their cases dismissed with no remedy. So the terrible injuries and damages will not be the responsibility of the maker of the defective vehicle, but will instead be the responsibility of the taxpayer. The medical bills and costs of supporting these injured consumers will now fall to the federal and state agencies.
The principals of responsibility should not have been forgotten in the GM case. The need to protect the company did not require the dismissal of the liability cases. And the result is that the taxpayer, not the maker of the defective product, will be responsible for the injuries.
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