GM seeks court aid to ban any recall litigations image

Because in 2009 the bankruptcy of General Motors led to the creation of a new company – albeit with the same name – now the “new” GM seeks to protect itself from the litigations triggered by the defective ignition switch recall.

Now, the company has moved to ask a US court to order the enforcement of an injunction from its sale back in 2009 – claiming that all plaintiffs are barred from suing new GM – because it contends that their claims are related to the predecessor.

As the situations seems from our point of view, while GM currently faces probes from both the NHTSA and the US Congress, the company moves to limit its losses.

“May New GM be sued in violation of this Court’s Sale Order and Injunction for economic damages relating to vehicles and parts sold by Old GM?” asked in its filling with the Bankruptcy Court for the Southern District of New York.

Under US law, since emerging from bankruptcy protection in 2009, GM has been a different legal entity and any liability and lawsuits should be brought by plaintiffs to what remains of the old company.

On the other hand, as lawsuits are amassing from people who were injured, killed or lost their car’s value as a result of the way Gm handled the defective ignition switch recall, the plaintiffs say Gm knew about the problem and fraudulently hid the knowledge it has of the defect – which means it shouldn’t be entitled to protection from any liability.

Via Reuters