Court rules GM shielded from death claims before bankruptcy

Bankruptcy Law

A federal judge ruled Wednesday that a 2009 bankruptcy order shields General Motors from billions of dollars in death and injury claims tied to defective ignition switches in older small cars.

But Judge Robert Gerber in New York, who handled GM's government-funded bankruptcy case six years ago, also ruled that plaintiffs who claim a loss in the value of their cars can still sue General Motors Co., but only for company actions that happened after it left bankruptcy in July of 2009.

The ruling is at least a partial victory for GM, with one plaintiffs' attorney saying it shields the company from $7 billion to $10 billion in potential legal liabilities. But it also leaves open the possibility of costly claims for decreased values of cars.

In 2009, Gerber allowed "new GM" to emerge from bankruptcy protection free from liabilities of the company before bankruptcy. But the plaintiffs recently argued that GM misled the court six years ago because it knew about but failed to disclose the ignition switch problem. The switches, which can slip out of the run position and cause cars to stall unexpectedly, are now linked to at least 84 deaths.

Lawyers for plaintiffs in more than 140 lawsuits had argued that their clients never got a chance to dispute the bankruptcy order and were never notified of the bankruptcy because GM concealed the defective switches.

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Can my trucking injury case be filed in Illinois?

If you have been injured in a truck driving accident, you may be wondering whether your worker’s comp case can be filed in Illinois. For an injured truck driver, this is an important question to ask, as the jurisdiction of the case can end up having a big impact on your benefits.

There are three main scenarios in which the Illinois Worker’s Compensation Commission would have jurisdiction over a trucking injury:

-If the accident took place in Illinois, If the employer is principally located in Illinois, or If the contract for hire is in Illinois

This means that a truck driver whose home terminal is in Illinois can make a claim for workers comp benefits in Illinois even if they were injured while on the road in another State. It also means that truck drivers who get hurt while passing through Illinois can file a claim in Illinois, even if their employer is located in another state.

If you have been injured on the road, and you are unsure where and how to file your workers comp claim, call us at (312)-726-5567 to begin your consultation. We can advise you whether Illinois is the right state to file for you. We have handled well over 30,000 claims for injured workers throughout the state of Illinois.

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