As General Motors is trying to get a bankruptcy judge in New York to uphold a shield against suits related to the ignition switch recall, the Texas plaintiffs on the matter agreed to hold off their suits until a decision is made.
General Motors is asking US Bankruptcy Judge Robert Gerber, the same who handled the fate of the automaker during the 2009 bankruptcy restructuring, to rule out all claims seeking economic compensation over the lost value of their cars. If positive, the ruling would bar at least 79 lawsuits linked to the faulty switch, as GM claims the 2009 reorganization meant it also shed many of the old company’s liabilities.
Judge Gerber asked car owners to delay their suits until at least September 1st, for him to have time to deliberate on the ruling, with many customers, including now the ones in Texas, accepting the delay.
Because customers in many states have filed lawsuits against GM on the same economic loss basis and to avoid inconsistent rulings from several Judges, a panel of judges should hold a hearing this month on whether to combine all class actions into a single, major one. General Motors said it’s only trying to bar economic claims, announcing it’s accepting responsibility for all the accidents that involved deaths or injuries.