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GM isn't liable for punitive damages in ignition switch cases

NEW YORK — A federal appeals court said General Motors is not liable for punitive damages over accidents that occurred after its 2009 bankruptcy and involved vehicles it produced earlier, including vehicles with faulty ignition switches. The 2nd U.S. Circuit Court of Appeals in Manhattan said on Tuesday that the automaker did not agree to contractually assume liability for punitive damages as part of its federally-backed Chapter 11 reorganization. GM filed for bankruptcy in June 2009, and its best assets were transferred to a new Detroit-based company with the same name. The other assets and many liabilities stayed with "Old GM," which is also known as Motors Liquidation Co. Tuesday's 3-0 decision may help GM reduce its ultimate exposure in nationwide litigation over defective ignition switches in several Chevrolet, Pontiac and Saturn models. It is also a defeat for drivers involved in post-bankruptcy accidents, including those who collided with older GM vehicles driven by others, as well as their law firms. The ignition switch defect could cause engine stalls and keep airbags from deploying, and has been linked to 124 deaths. A lawyer for the drivers and their law firms did not immediately respond to requests for comment. GM had no comment. Circuit Judge Dennis Jacobs said GM's agreement to acquire assets "free and clear" of most liabilities excused it from punitive damages claims for Old GM's conduct. He also noted that the judge who oversaw the bankruptcy concluded that the new company could not be liable for claims that the "deeply insolvent" Old GM would never have paid. The decision upheld a May 2018 ruling by U.S. District Judge Jesse Furman in Manhattan, who oversees the ignition switch litigation. Drivers have sought a variety of damages in that litigation, including for declining resale values. GM has recalled more than 2.6 million vehicles since 2014 over ignition switch problems. It has also paid more than $2.6 billion in related penalties and settlements, including $900 million to settle a U.S. Department of Justice criminal case. The case is In re: Motors Liquidation Co, 2nd U.S. Circuit Court of Appeals, No. 18-1940. Government/Legal Chevrolet Pontiac Saturn Safety gm ignition switch

Distracted driver crosses center line and hits police car

Attentive driving and quick reflexes saved the life of a police officer in Hudson, WI, when an oncoming driver drifted into the officer's lane and struck his cruiser. According to KMSP, the officer was patrolling along a busy road through Hudson on March 31 when the crash occurred. Dash cam video from the patrol car which was released to local media shows the dramatic collision unfold. As the officer came around a mild left-hand curve, a white, 90s-era Pontiac Grand Am continued straight through the curve, across the center line, and directly into the officer's path. The officer was able to avoid a head-on collision, but the Pontiac still struck the driver's side of the patrol car. "Both the officer and the other driver are ok, however, this accident could have been much, much worse," said a Hudson Police Department official on the department's Facebook page. "So please remember to pay attention to your driving at all times when behind the wheel." Minnesota's Department of Public Safety estimates that one in every four crashes in the State of Minnesota are caused by distracted drivers. DPS believes that the actual number may be higher, but police often have difficulty proving distracted driving as the cause of a crash. Government/Legal Pontiac Driving Safety Coupe Police/Emergency

Classic Pontiac Trans Am Firebird Super Duty 455 sells for nearly $90,000

Historically, the Pontiac Firebird Trans Am raised the performance levels a notch or two over a plain Firebird in the muscle car hierarchy of the Sixties. But the Super Duty 455 version of the Trans Am — that number represents the cubic inches of the hand-assembled V8 engine — moved the performance needle big time in 1974. So much so that a clean example of the machine sold recently on the Hagerty Marketplace auction site for $89,296. Advertised with just under 54,000 miles on the clock and having undergone a thorough restoration, the Buccaneer Red model was one of just 943 Pontiac Firebirds equipped with the Super Duty 455 package for the 1974 model year. That build had also been offered in 1973. The Hagerty listing drew more than 21,000 views and 39 bids. According to Hagerty's valuation report, a similar car would be worth $85,700 in good condition, and $103,000 if it was in ‘“concours condition.” The Super Duty motor borrowed technology from the lineÂ’s 366-cubic-inch NASCAR engine, and featured heavy-duty connecting rods and an entirely new block with a revised crankshaft and heads to deliver a claimed 310 horsepower. The Firebird that sold was indeed loaded, with a three-speed Hydra-matic transmission (which surely reduced its overall value), power locks and windows, AC, dual exhausts, heavy duty stabilizer bars all around, and a “custom Interior trimmed in Red perforated Morrokide vinyl upholstery.” The entry of PontiacÂ’s pony car in the U.S., facing off against the Mustang and Camaro, dates back to 1967, when it was offered with an inline six and optional V8. The first Trans Ams were introduced two years later, the name derived from a handling package. General Motors ceased production of new Pontiacs in 2002 owing to declining sales and losing stakes in the sports coupe market. The big 455-cid V-8 had disappeared years earlier.