'New GM' is Paying 'Old GM' Claims, Even Though They May Not Have To
General Motors victims compensation fund is paying for injury claims older than the company’s 2009 bankruptcy and, in some cases, for injuries sustained by drivers who were drunk or weren’t wearing their seatbelts, according to the New York Times.
The newspaper reported the findings by attorney Kenneth Feinberg, who was hired by the automaker to manage the company’s fund to pay for victims of its faulty ignition switch that killed 124 people.
According to the report, 128 claims — roughly one-third of the claims against the automaker — were for injuries before the company’s 2009 bankruptcy. GM fought successfully this year to protect itself from lawsuits against “Old GM.” In April, a judge protected “New GM” from many of those lawsuits.
Nonetheless, Feinberg noted that “New GM” was still paying many of the old claims with a “non adversarial” approach, according to the automaker.
“We faced the ignition switch issue with integrity, dignity and clear determination to do the right thing both in the short and long term,” GM spokesman James Cain told the New York Times.
Feinberg’s report also showed that many claims were paid after evidence had suggested that victims were unbelted, speeding or drunk. According to the report, 124 of the 399 eligible victims weren’t wearing a seatbelt, 151 were speeding and drug or alcohol abuse was found in 68 cases.
More by Aaron Cole
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Another way to look at this is that New GM is deploying both a carrot and a stick to settle lawsuits quickly in private. They offer a settlement while being able to remind the opposing lawyers that New GM holds a strong legal position if this were to go to trial.
I'm still amazed that any people were killed due to this ignition switch problem. Over the years I've driven many (yes older and not in goood shape), vehicles and had the engine quit due to a fuel delivery, vapor lock, bad points, etc problem. I've always pulled off to the side of the road. I've never so much as scratched a fender due to this, let alone kill myself. I think if a driver is that incompetent as to crash a car when the engine dies, they shouldn't be driving.
Government Motors loves to shove their history down our throats when it suits them, like the 1909 founding by Durant, how "American" they are when it suits them. Then hide behind the bankruptcy judge when their crap cars kill people. GM deserves to rot alongside the Enrons, Continental Airlines, and AT&Ts of the world.
Reason #937387529438572198357293457295872395872394871134863945762349872364 never to buy any GM carbage.