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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

US database may have overstated deaths in GM ignition switch recall

The FARS analysis didn't take into account fatal accidents where the airbags weren't supposed to deploy. Earlier today, we reported that the actual death toll attributable to GM's ignition switch problem had crested the 300 mark according to new research, well up from the original reports of 12 to 13 deaths. Now, word is breaking that the US government database that informed the study that the report was based on may have significantly overstated the correlation between the study and the GM recall. The initial study was conducted by Friedman Research on behalf of the Center for Auto Safety, and used something called the US Fatality Analysis Reporting System. To recap, the study claimed that over a 10-year period, 303 people were killed in Chevrolet Cobalt and Saturn Ion coupes and sedans when their airbags failed to deploy. These undeployed airbags were then linked to GM's ignition switch recall, which as we've explained before, can turn the ignition out of the "run" position and into the "off" or "accessory" position, disabling the airbags in the process. Now, according to a report from The Detroit News, which cites research from the Insurance Institute for Highway Safety and the National Study Center for Trauma and EMS at the University of Maryland, the FARS analysis didn't take into account fatal accidents in conditions where the airbags weren't supposed to deploy (which isn't to say crashes and deaths weren't caused by loss of control from the ignition switching off in the GM vehicles). According to the report, this was a significant number of the cases. There is another potential problem, too. According to that same report, the National Highway Traffic Safety Administration uses both FARS and another database on fatalities, called the National Automotive Sampling System/Crashworthiness Data System (NASS/CDS). Where FARS uses what the DetNews calls "not always reliable" police data to record vehicular deaths within 30 days of a crash, NASS/CDS relies on what's known as a probability sample. It collects data on 5,000 crashes each year – including some found in the FARS database – to calculate a probability figure. According to a 2009 IIHS study, "Among crashes common to both databases, NASS/CDS reported deployments for 45 percent of front occupant deaths for which FARS had coded nondeployments." In plain English, FARS doesn't provide a reliable count airbag deployments.

Woman Cleared In Fatal Car Wreck After GM Letter

A Texas judge cleared a woman Monday for a car accident that killed her fiance in 2004, after General Motors acknowledged that her car would have been among millions being recalled for a problem that may have contributed to the death. Candice Anderson was driving a 2004 Saturn Ion when it suddenly veered off a road about 60 miles east of Dallas and slammed into a tree. Anderson, then 21, was severely injured when the car's air bags failed to deploy. Her 25-year-old fiance, Gene Erikson, who was a passenger, was killed. She later pleaded guilty to charges stemming from the wreck. But during a hearing Monday, State District Judge Teresa Drum expunged the conviction from her record, according to officials in the Van Zandt County court andAnderson's attorney, Bob Hilliard. In a letter given to the court ahead of the hearing, an attorney for the automaker confirmed that Anderson's Saturn would have been among 2.6 million GM vehicles recalled in February to address ignition switches that can slip out of the "run" position, causing the engines to stall and disabling power steering, brakes and air bags. Anderson's crash "is one in which the recall condition may have caused or contributed to the frontal air bag non-deployment in the accident," attorney Richard C. Godfrey wrote. Hilliard provided a copy of the letter to The Associated Press, and Godfrey confirmed its contents Monday. Anderson was initially charged with criminally negligent homicide because there was no clear explanation at the time why the wreck occurred, according to court documents from the case. She pleaded guilty to a letter charge in 2006, and was sentenced to five years' probation. She also was ordered to perform 260 hours of community service, pay court costs and cover the costs of Erikson's funeral. "GM knew this defect caused this death, yet instead of telling the truth watched silently as Candice was found guilty of involuntary manslaughter," Hilliard said Monday. "It took 10 years for GM to find its voice." In a separate statement issued by the company, GM said it "cooperated fully by providing technical information that was requested to make a decision in this matter." The carmaker also said the issue in Anderson's case was for local law enforcement and courts to consider. "That's why we took a neutral position on Ms. Anderson's case," the company's statement said. "It was appropriate for the court to determine the legal status of Ms.