As GM, Ford and Chrysler struggle to rebuild in Detroit, their reorganization could have a dramatic impact on the outcome of countless asbestos-related lawsuits.
GM filed for Chapter 11 bankruptcy on June 1, 2009. According to U.S. laws related to bankruptcy, organizations that file for Chapter 11 are allowed to request that all asbestos-related liabilities be moved into a single trust. Such an outcome could potentially be disastrous for those who have suffered unhealthy asbestos products from GM products.
Presently, asbestos-related cases filed against GM total approximately $648 million. The majority of cases come from individuals who had close contact with brake pads on GM cars. Asbestos has long been a component used in brakes due to its high level of heat resistance.
If GM is successful in rolling all current claims into a single trust, claimants can expect to receive a fraction of what they would likely receive from independent trials.
Presently, the government’s plan for GM is to sell the company’s best assets off to a new corporation. The Official Committee of Unsecured Creditors, a group that includes asbestos claimants, is fighting to block the move. They are seeking to accomplish this by deeming the government sale as unconstitutional, because asbestos claimants were left out of the decision process.
As it stands now, GM is requesting that all current product liability lawsuits be admonished. Such a condition has already been granted to Chrysler as a part of their reorganization package.
This latest development in the restructuring of GM is just the latest example of how tort reform can negatively impact asbestos claimants. By enacting laws that limit a mesothelioma patient’s ability to file and collect fair compensation, the legal system is doing a grave injustice to victims.
If you are concerned that GM’s bankruptcy could affect your right to seek financial compensation for asbestos exposure and mesothelioma, schedule a free consultation with our experienced mesothelioma lawyers. Contact us today.
