Chrysler/Fiat Get Off Scott Free From Existing and Future Products Liability Claims

The New York Times reports that the Judge overseeing the Chrysler bankruptcy has ruled that the company taking over Chrysler, Fiat, cannot be held liable for any future product liability claims of owners of current Chrysler products. Therefore, as an example, if you own a Jeep Cherokee presently and you get in a car accident and the seat belt breaks (a clear defect), you have no recourse. You will not be able to sue Chrysler, the manufacturer of the product or the company called Chrysler that comes out of bankruptcy. Too bad you are now a paraplegic as a result of a defective product made by Chrysler, you have no right to sue.
To make matters worse, the Bankruptcy Judge has also indicted that with regard to those product liability lawsuits presently filed and pending against Chrysler claiming a safety defect caused an injury, there will be very little, if any money available to pay those plaintiffs even if they get a verdict from a jury that Chrysler was responsible. In no uncertain terms, this is injury without remedy.
As indicated in this article in the NY Times and as some law professors have asserted, how can a bankruptcy judge take away an owner’s future rights without any due process. This ruling by this bankruptcy Judge is an outrage. There is no doubt in my mind this will rollover (no pun intended) into the GM bankruptcy. I expect a ruling will be made there as well that any existing GM car owners will have no right to sue the NEW GM for their products liability claims.
As a lawyer who has not only represented car companies in products liability litigation at one point in my career, and now represents individuals who have been injured due to a defect in the car they were riding in, it is appalling to me that a judge can just wipe out the rights of individuals to have their day in court to address legitimate issues. Does this not go to the heart of our judicial system??? Is this not why our judicial system is the envy of the world??? Not only have these companies, which have been poorly run for so many years, taken billions in taxpayer money to keep alive their sick companies, but now our court system is giving them the ability to be responsible for killing and maiming innocent people without any potential that car companies will have to accept responsibility. This is just not right!!!