P&A Providers & Administrators
MenuMENU
SearchSEARCH

GM Proposes Treating Recall Injury Victims Equally

May 5, 2014
2 min to read


Via The Wall Street Journal


General Motors Co.'s compensation expert Kenneth Feinberg is devising a plan that would compensate injury victims linked to an ignition-switch recall no matter when their accident occurred, according to a Texas attorney.

Ad Loading...


Plaintiffs' attorney Bob Hilliard, who met with Mr. Feinberg on Friday, said the adviser plans to propose some form of compensation for all victims regardless of whether their accident occurred before or after GM's July 2009 bankruptcy.


Under terms of its bankruptcy exit, GM was shielded from all liabilities before its July 2009 filing for court protection. A decision to treat pre- and post-bankruptcy victims equally would signal an easing of its past position.


A GM spokesman declined to comment on Mr. Hillard's assertions. "It is inappropriate for us to comment until Mr. Feinberg's work is complete," he said.


Mr. Feinberg, in a separate interview, called the meeting productive but added: "any talk of compensation is very premature. There were no substantive conclusions."


Meanwhile, a federal judge in New York on Friday took up the matter of whether those GM owners claiming loss of vehicle value as a result of the recall can sue the Detroit company. Judge Robert Gerber of the U.S. Bankruptcy Court in Manhattan must decide whether lawsuits filed by those claiming economic losses are shielded by GM's bankruptcy filing.

Ad Loading...


Judge Gerber said Friday that he will decide whether the owners were denied due process because GM didn't issue a recall for their vehicles until after it filed bankruptcy in 2009.


Both moves by the auto maker highlight the two-pronged strategy GM is employing to contain the potential financial and legal fallout. While Mr. Feinberg wants to appease accident victims, GM attorneys in New York want Judge Gerber to uphold bankruptcy stipulations that shielded the company from other liabilities.


Last month, GM asked Judge Gerber to affirm that GM had essentially discarded its liabilities related to consumer financial losses during the case.


Before a packed courtroom on Friday, attorney Edward Weisfelner, argued the GM car owners seeking claims for loss of value were denied information about the defect that should have been disclosed in 2009.


"They weren't given due process," he said. "In that case, should the sale order [which created the bankruptcy shield] apply to them?"

Ad Loading...


If the judge agrees, the class-action lawsuits could ultimately proceed against GM. Denial could force the plaintiffs to seek recovery from the bankrupt entity, which has few assets and wouldn't likely result in any payments.


The economic loss suits are separate from the lawsuits filed by Mr. Hilliard and others representing accident victims.

More Industry

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →