Bankruptcy court battle looms over economic-loss claims against GM concerning ignition-switch issues
Image from Linda Parton / Shutterstock.com.
As so-called master of disaster Kenneth Feinberg parcels out compensation from a $400 million General Motors fund for those injured and killed in accidents caused by vehicle ignition-switch issues, the automaker is headed to court next week in a separate case to do battle over economic-loss claims.
GM says that car owners who contend they are entitled to damages because news of the ignition-switch issues diminished the resale value of their GM vehicles should get nothing. That’s because the bankruptcy court discharged such debt in 2009, after GM filed for bankruptcy. However, those pursuing the economic-loss claims say the claims weren’t discharged, because GM didn’t disclose the potential liability adequately in its bankruptcy filing, reports the Bankruptcy Beat page of the Wall Street Journal (sub. req.).
A hearing is scheduled Tuesday in federal court in Manhattan.
Related coverage:
ABAJournal.com: “Prove GM fraud on court, if you can, bankruptcy judge tells lawyers in ignition-switch cases”
See also:
ABAJournal.com: “Feinberg OKs payment for 50 deaths from $400M GM ignition fund; compensation starts at $1M”
