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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

Car thief lands Saturn on Fresno roof

Residents of a Fresno, California apartment building recently awoke to debris falling from their ceiling after a car thief managed to execute a perfect parking job on the structure's roof. Police say 26-year-old Benjamin Tucker stole the Saturn sedan from a nearby house before striking either a curb or some rocks, vaulting the vehicle into the air and onto the roof. After seeing his predicament, Tucker leapt from the roof and fled the scene. Or at least he tried to. Tucker broke his leg in the fall and only made it around a quarter of a mile from the crash when police picked him up.
No one else was harmed in the stunt.
Tucker had two outstanding warrants for his arrest at the time for a hit-and-run and evading police. A special crane had to be called in to remove the Saturn from the apartment roof and the structure will indeed require repairs. Hit the jump for a news report on the incident.

First GM ignition switch trial dismissed

Robert Scheuer has agreed to dismiss his ignition switch claims against General Motors to bring a sudden stop to the first federal trial over the automaker's faulty parts. The lawsuit was the first of six cases that were a bellwether to set a precedent in the complaints. Scheuer didn't receive any financial settlement from GM, according to Reuters. Scheuer alleged that he was injured when his 2003 Saturn Ion went off the road and hit the tree. The airbag didn't deploy, which Scheuer claimed was the result of the faulty ignition switch. GM originally attempted to dismiss the trial over a lack of evidence, but US District Judge Jesse Furman set a January 11 start date for the case. During the trial, GM's attorneys accused Scheuer and his wife of lying and presented evidence of an allegedly altered check stub that they used to purchase a house. Scheuer's defense had claimed that the family was evicted from the home after memory loss from the accident caused Robert to lose the down payment check. After the allegations, Furman pushed for a settlement. He called the trial an "outlier" and "almost worthless as a bellwether case," according to Bloomberg. The next of the six trials begins in March, Reuters reports. Related Video: