GM asked Judge Robert Gerber to dismiss several lawsuits against the automaker related to the faulty ignition switch recall of 2.6 million vehicles.
General Motors asked a New York bankruptcy judge to dismiss the growing number of lawsuits asking for monetary compensation for simply owning any of the vehicles involved in the faulty ignition switch recall.
The automaker noted in its motion that it’s not asking the court to address litigation involving “an accident or incident causing personal injury, loss of life or property damage.” It simply wants the Judge Robert Gerber to dismiss lawsuits filed asking for money for driving the vehicles. According to GM, there are more than 50 lawsuits against the company.
“As your honor may be aware, numerous lawsuits have been filed across the country against New GM,” according to documents. “New GM believes that the ignition switch actions assert claims against new GM that are ‘retained liabilities’ of Old GM and therefore violate your honor’s July 5, 2009 order.”
GM has come under fire for seeking this protection, in particular during Congressional hearings earlier this month. The company hasn’t publicly committed to establishing a fund for the victims who have been injured or killed driving any of the 2.6 million vehicles that were recalled. It acknowledges 31 injuries and 13 deaths have resulted from the faulty switches.
“General Motors has taken responsibility for its actions and will keep doing so,” the company said in a released statement. “GM has also acknowledged that it has civic and legal obligations relating to injuries that may relate to recalled vehicles, and it has retained Kenneth Feinberg to advise the company what options may be available to deal with those obligations.”
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The owners of the vehicles involved in the recall are asking for monetary damages to offset losses they expect incur when they attempt to resell the vehicle in the future due to the expected decline in the vehicle’s value.
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Other plaintiffs have complained that GM knew about the issue for more than a decade, making the vehicles “unfit for their intended purpose – to provide safe, reliable transportation” and that in the name of “business” GM hid the problem.
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GM recalled the vehicles on Jan. 31, including those that may have faulty replacements. The company has been working with its supplier, Delphi Corp., to manufacture replacement ignition switches that eliminate the problem. The new part is ready and Delphi is building and shipping them to dealers. Dealers are calling in owners as the parts arrive and making the change, according to the automaker.