Wednesday, May 27, 2009

Elsie Law's Daily Dose Of The Law: How Will GM's Financial Status Affect Pending Lawsuits

Several financial news outlets are forecasting that auto-maker General Motors will possibly declare bankruptcy before the week's end. The auto manufacturer has been the recipient of billions of dollars in bailout funds. However, they claim difficulty in keeping the company afloat.

The auto giant currently has several lawsuits concerning product liability pending. According to The New York Daily News: "An estimated 1,200 Americans are suing GM for product liability." The plaintiffs are contemplating how much settlement money they will be able to receive if they are victorious in their pending lawsuits, if the defendant- General Motors- declares that it is going belly up. One plaintiff is suing because he claims that a faulty seatbelt in a General Motor's manufactured vehicle contributed to his daughter becoming a quadriplegic. This particular plaintiff is worried about how he will cope with his daughter's approximately half-a-million dollar per year medical expenses.

The New York Daily News states that many of the plaintiffs with lawsuits files against General Motors "are debating the risk of settling their cases before the companies go under, including seven NYC Transit bus drivers and mechanics who allegedly contracted cancer and other illnesses from inhaling sickening diesel fumes from GM vehicles."

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