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GM and Chrysler Product Liability Plaintiffs

Lost in the discussion of bondholders, dealers and layoffs is the effect of bankruptcy filings on product liability suits against GM and Chrysler, typically launched by victims of automobile accidents who claim that they would have been less injured than they were if only their vehicle had been "correctly designed." Thousands of such suits are pending at any one time -- either our auto designers are remarkably inept or this kind of liability is remarkably open-ended and lawless (guess which option I choose?). The Washington Times reports that plaintiffs' lawyers are outraged that their clients must now compete for the few cents on each dollar that unsecured creditors get.

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Rafael Mangual
Project Manager,
Legal Policy

Katherine Lazarski
Manhattan Institute


Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.