I8ABMR

http://www.autoblog.com/2011/05/27/w...y-left-behind/

According to The Wall Street Journal, Chrysler's post-bailout restructuring allowed it to effectively erase any responsibility for car accident victims. Two years after the $12.5-billion auto industry bailouts, families like the one Vicki Denton left behind are stuck between a rock and a hard place.

The WSJ reports that Ms. Denton was killed in a head-on collision in which the airbag in her 1998 Dodge Caravan failed to deploy. A court ordered Chrysler to pay Denton's son and surviving relatives $2.2 million in damages, but that was just before the bailout hit. Since Chrysler is no longer under any obligation to the family because the bailout measures absolved Chrysler from its liabilities, the Dentons will almost certainly never see their money and have no legal recourse to get it.

The Chrysler case isn't unique. The same rings true at General Motors, where a $50-billion bailout and restructuring left asbestos victims, laid off dealers and accident victims without any way to secure their damages. Beyond the unfairness of the deal, some experts suggest paying accident victims wouldn't have been out of the question.

Those who coordinated the bailouts maintain that in situations like the ones at GM and Chrysler, full recompense simply isn't possible for everyone. As far as the courts are concerned, there is standing legal precedent to allow for such omissions during a bankruptcy restructuring.

mmarshall

When did this accident take place? By Federal law, airbag-assemblies only have to operate for ten years from the date manfacture....it's now some 13 years.

I8ABMR

it was supposed to pay out so I am assuming that the judge was aware of the rules. I personally was not aware that they only had to work for 10 years. Thanks for the info. As always you have a wealth of knowledge

CDNROCKIES

Apparently I missed the news that GM and Chrysler went into bankruptcy. I thought that the bailouts were doled out to prevent bankruptcy???

Guess they decide what it was based on what serves their own interests best.

Och

iTrader: (3)

I think even before the bailout, or during the process of the bailout, the federal government relieved them of any obligations. It was widely publicized that GM's and Chryslers bond holders got the shaft, but I guess they aren't the only ones. Its a disgusting situation any way you look at it, and this is why I'll never even consider buying any vehicle from these two companies.

IS-SV

Saw this is WSJ today, did not come as a surprise to me.

G Star

iTrader: (2)

I thought the bailouts were to prevent bankruptcy as well, how can the government have the power to relieve corporations of their financial obligations (especially ones ruled in court).


America is becoming more and more like a Fascist state.

LeX2K

The problem is, no politician or political party wants to be attached to an event like GM going out of business for good. The short term pain would be significant to say the least, and guess who would get blamed, the government. I personally strongly disagreed with the GM bailout, they should have been left to die a natural death. I would not be the least bit surprised to see Government Motors back in dire straights sometime in the future, GM has not changed one bit IMO, same arrogance and stupidity.