GM Agrees to Take Responsibility for Future Liability Claims
In a deal reached by the Obama administration, General Motors and several state attorneys general, the carmaker will accept future defective vehicle accident claims that occur after it comes out of Chapter 11. Past claimants would have to pursue the old GM left behind in bankruptcy, offering them little chance to recover damages. This amendment is a “partial victory” for consumer advocates and state attorneys general who pressured Congress and the administration to force GM to accept all product liability claims. But the groups say that both GM and Chrysler, because they are supported by the federal government, should be required to buy liability insurance against past and future claims in spite of bankruptcy filings. (6/29) Washington Post
