Over the course of the last few years, General Motors has recalled over 26 million vehicles, spanning over 55 models. This series of recalls, the largest in U.S. history, covers all but three of GM’s main vehicle models. Many of the vehicles that were recalled had serious problems with the ignition switch. Indeed, it is difficult to gauge exactly how many deaths have been caused by the ignition switch problem, but by most estimates the number is well over 100.
What makes this recall extraordinary is not just the volume of vehicles recalled but also the fact that there is evidence suggesting GM knew about the dangers of the ignition switches but failed to do anything. This has led to a series of personal injury cases that, according to GM’s own estimates, will cost the company about $2.5 billion. It cost the company so much, in fact, that GM actually entered a form of bankruptcy.
According to a recent news article covering the bankruptcy, under an appellate court’s decision, accident victims’ claims against the “new” GM may be viable despite GM’s assertion that the claims dissolved along with the “old” GM. The court had to decide several important questions of law, just one of which was: what happens to the claims filed by all those people who were injured by faulty ignition switches? Should those claims be dismissed because the corporation that manufactured the vehicle is technically no longer in existence? Or should the claims be able to be asserted against the new GM corporation?