Justices turn away GM appeal over ignition switches

Business Law

The Supreme Court on Monday turned away an appeal from General Motors Co. seeking to block dozens of lawsuits over faulty ignition switches that could expose the company to billions of dollars in additional claims.

The justices without comment left in place a lower court ruling that said the automaker's 2009 bankruptcy did not shield it from liability in the cases.

A federal appeals court ruled last year that GM remains responsible for ignition-switch injuries and deaths that occurred pre-bankruptcy because the company knew about the problem for more than a decade but kept it secret from the bankruptcy court.

The company had argued that well-established bankruptcy law allowed the newly reorganized GM to obtain the old company's assets "free and clear" of liabilities.

GM recalled 2.6 million small cars worldwide in 2014 to replace defective switches that played a role in at least 124 deaths and 275 injuries, according to a victims' fund set up by GM and administered by attorney Kenneth Feinberg.

The automaker has paid nearly $875 million to settle death and injury claims related to the switches. That includes $600 million from Feinberg's fund and $275 million to settle 1,385 separate claims. It also has paid $300 million to settle shareholder lawsuits. But many others are pursuing their claims in court.

After it emerged from the government-funded bankruptcy, the company referred to as New GM was indemnified against most claims made against the pre-bankruptcy company, known as Old GM. A bankruptcy court sided with the company in 2015, ruling that most claims against Old GM could not be pursued.

But the appeals court in Manhattan overturned most of that decision and said hundreds of pre-bankruptcy claims could go forward.

Related listings

  • Court: FAA must reconsider regulating airline seat size

    Court: FAA must reconsider regulating airline seat size

    Business Law 08/23/2017

    An appeals court panel said Friday that federal officials must reconsider their decision not to regulate the size of airline seats as a safety issue.One of the judges called it “the Case of the Incredible Shrinking Airline Seat.”The Flyer...

  • British cybersecurity expert pleads not guilty to US charges

    British cybersecurity expert pleads not guilty to US charges

    Business Law 08/23/2017

    A British cybersecurity researcher credited with helping curb a recent worldwide ransomware attack pleaded not guilty Monday to federal charges accusing him of creating malicious software to steal banking information three years ago.Marcus Hutchins e...

  • Nevada pot regulators back in court as supplies dwindle

    Nevada pot regulators back in court as supplies dwindle

    Business Law 08/23/2017

    Nevada's marijuana regulators are headed back to court in a turf battle with liquor wholesalers over exclusive rights to distribute pot products to the state's new recreational retailers.Nevada's Taxation Department says the protracted legal fight ha...

Grounds for Divorce in Ohio - Sylkatis Law, LLC

A divorce in Ohio is filed when there is typically “fault” by one of the parties and party not at “fault” seeks to end the marriage. A court in Ohio may grant a divorce for the following reasons:
• Willful absence of the adverse party for one year
• Adultery
• Extreme cruelty
• Fraudulent contract
• Any gross neglect of duty
• Habitual drunkenness
• Imprisonment in a correctional institution at the time of filing the complaint
• Procurement of a divorce outside this state by the other party

Additionally, there are two “no-fault” basis for which a court may grant a divorce:
• When the parties have, without interruption for one year, lived separate and apart without cohabitation
• Incompatibility, unless denied by either party

However, whether or not the the court grants the divorce for “fault” or not, in Ohio the party not at “fault” will not get a bigger slice of the marital property.