People filing lawsuits against General Motors Co over a faulty ignition switch will get two chances in Manhattan court this week to argue with GM. They will be given the opportunity to dispute that the U.S. automaker should be held accountable for injuries, deaths, and lost vehicle value.
According to INAUTONEWS, jury selection has already started on Monday in the second trial of a car accident reportedly caused by the faulty switch that prompted the recall of 2.6 million vehicles in 2014 and has been connected with around 400 serious injuries and deaths. After the trial was concluded in January following the accusation made by the plaintiff that gave misleading testimony, the newest trial will be the basis if GM is reliable for its years-long failure to conduct a recall.
Yahoo! News reported that in the same court on Tuesday, plaintiffs suing over lost vehicle value and accidents that happened prior to the 2009 bankruptcy of GM will seek the 2nd U.S. Circuit Court of Appeals to reverse unfavourable rulings from a bankruptcy court last year. The complainants also claimed that the decisions could impact a lot of their complaints under a sale agreement that largely freed the "New GM" from liabilities that lead to its bankruptcy.
The court case could also affect the claims worth almost billions of dollars over the defective switch. The malfunctioning switch can slip out place, causing the engine to stop and cutting the power to airbags, brakes, and steering systems.
While the company has already shelled off $2 billion in court agreements and charges over the defect, it still faces hundreds of injury and death court cases. Also, to help measure those cases' value, a series of test trials has been set to know how the juries will view all of the evidence. The information gathered will also be in big help for the settlement talks.
At the 2nd Circuit, the complainants will also argue that GM should face their claims because the company's fraud caused them to be deprived of a chance to join in the bankruptcy proceedings, as claimed by Reuters. In fact, a lawyer for the plaintiffs, Steve Berman mentioned that had the U.S. government knew about the malfunctioning of the switch during the GM's bankruptcy, "The cars would have been recalled then, or the deal modified."
Meanwhile, the plaintiff's lawyers have approximated the worth of the economic-loss claims to be as high as $10 billion. However, they acknowledge that they could face abrupt obstacles to solve anything if the 2nd Circuit does not overturn the previous rulings.
