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US Supreme Court blocks appeal on defective ignitions

Samson Toromade

The top court without comment refused to hear GM's appeal against a decision handed down last year by a federal appeals court.

General Motors
General Motors

The top court without comment refused to hear GM's appeal against a decision handed down last year by a federal appeals court in New York.

The lower court rejected GM's claims that its 2009 bankruptcy should protect it from lawsuits related to the faulty switches.

The defective switches would sometimes shut off unexpectedly during driving, and have been linked to more than 100 deaths and hundreds of serious injuries.

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GM claimed the 2009 bankruptcy sale -- in which government-backed "New GM" bought nearly all of the company's assets -- shielded the carmaker from the legal liabilities of its predecessor.

But plaintiffs argued the company should be liable for the conduct of "Old GM" because that company knew about the defect long before the bankruptcy.

The Second Circuit Court of Appeals in July ruled in favor of the plaintiffs, saying consumer complaints were lodged as early as 2002.

GM's position effectively asked the court to reward debtors who concealed claims against potential creditors, the court found.

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Samson Toromade Samson Toromade Samson Toromade is the Editor-in-Chief of Pulse Nigeria. Contact: samson.toromade@pulse.ng

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