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Chip Bowles Comments on GM Recall Case in Bloomberg


Bingham Greenebaum Doll LLP partner Claude R. Chip Bowles Jr. was recently quoted in Bloomberg concerning a case against General Motors. At issue is whether GM bears liability related to vehicles with flawed parts it built and sold before its July 2009 bankruptcy. If a U.S. bankruptcy judge rules against the auto manufacturer, GM may have to pay out nearly $2 billion.

Bowles said that it is likely that the judge may say consumers who purchased flawed GM vehicles before the bankruptcy should be given a shot at collecting. “He (the judge) could easily rule that,” said Bowles.

The issue arose when GM recalled 2.2 million vehicles with an ignition-switch flaw that has been linked to 30 deaths. GM set aside $600 million to compensate people who were injured or lost loved ones in those vehicles, including pre-bankruptcy models. However, GM says it is not obligated to pay economic damages to people who claim those same pre-bankruptcy cars have a depressed value due to the flaw. 

Earlier this year, Bowles discussed why plaintiffs attempting to sue GM may have a difficult time in the April 2014 issue of Product Safety and Liability Reporter.

To read the full article, “GM Could Face $2 Billion Tab if Bankruptcy Shield Fails”, visit the Bloomberg website.

To learn more about Claude R. Chip Bowles Jr. and his practice, visit his profile.

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