New General Motors Denies Responsibility to Fix Impala Problem

Last month, the New General Motors was taking action to dismiss a lawsuit relating to a suspension problem on over 400,000 Chevrolet Impalas from the 2007 and 2008 model years. They claim it is not their responsibility to handle the repairs because the problem was in existence prior to their 2009 bankruptcy and federal bailout. The lawsuit was filed by a woman from Pennsylvania claiming her Impala suffered from faulty rear spindle rods which caused her rear tires to wear out after only 6,000 miles. The suit turned into a class action lawsuit alleging breach of warranty and the lawsuit requests that GM fix the problem with the rods.

New GM Refutes the Request

The New GM's response was that they do not assume responsibility for the cars made by its predecessor General Motors Corporation (or the Old GM) under the reorganization and were subject to only make repairs that were covered in specific terms and conditions on a moving forward basis. A lawyer for New GM stated that they do not assume responsibility for Old GM's conduct, design choices, or alleged breaches of liability under their warranties.  

Questions of Successor Liability Not Uncommon

According to Mr. John Penn, a former President of the American Bankruptcy Institute (not involved in the case) successor liability is a common issue that comes up in manufacturing companies that are working through bankruptcy.  The issues in this case are still being studied.

Are you considering filing for bankruptcy in Westchester County?

If you are considering filing for bankruptcy personally or for a business, you need to consult with a competent  Westchester County bankruptcy lawyer for help. Filing a bankruptcy is a detailed process and you need to ensure it is done correctly and in accordance with bankruptcy filing legal procedure. At Bronson Law Offices, we specialize in bankruptcies. We have over twenty five years of experience in the legal field and offer honest advice and guidance for individuals experiencing problems with debt. Please be advised you need not feel alone. Many people in this uncertain economy are experiencing difficulties and are looking for ways to relieve stress and gain a fresh start.  We can help you determine which is the best course of action for you to take based upon your specific situation and start you on the path to a better financial future.