Chrysler Reverses Stance on Product Liability
Christopher Jensen reports, “when Chrysler went through Chapter 11 bankruptcy protection earlier this year, the court granted an important request to prevent current owners from suing the new company if they were injured by a safety defect in the future” (New York Times, 8/28). Chrysler argued that it was unfair to burden the “new” company with defects resulting from the “old” company.
However, Chrysler has apparently had a change of heart because the automaker recently agreed to accept responsibility for injuries resulting from Jeep, Chrysler, or Dodge vehicles made and sold prior to its bankruptcy filing. As a personal injury lawyer, I am pleased that the company has agreed to take on responsibility for all of its products.
Mike Palese, a Chrysler spokesman, said, “when the automaker was going into bankruptcy it needed to take advantage of all the financial protection it would get… [but] now the company knows more about its financial situation and feels it can absorb those liability claims over time.” Some have speculated the sudden change of heart was influenced by General Motors’ willingness to accept responsibility for defective products during its bankruptcy proceedings. Regardless, it is good to see the automaker “finally living up to its corporate responsibility.”
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