LA Times suddenly outraged at Chrysler deal (because it might stop some lawsuits)
The press largely ignored the plight of secured creditors (including my own pension) when Obama rammed through his special deal with Fiat to bail out the UAW. But now the uber-leftist LA Times has found some ourtrage because some former Chrysler owners are now unable to sue the the new Chrysler.
The LA Times is right to highlight the injustice being done to Mr. Warriner. But it should have been just a deligent when Obama was sticking it to retired cops and teachers ram through a deal that obliterated contract law…to reward some key political donors.
...In October 2005, Jeremy Warriner swerved his new Jeep Wrangler to avoid an oncoming car and crashed into a utility pole. The pole fell, trapping Warriner inside the car. Then, engineers hired by his attorneys alleged, the plastic brake fluid reservoir broke, setting the Jeep on fire.
Warriner awoke from a medically induced coma 5 1/2 weeks later with two amputated legs.
But his lawsuit against Chrysler ended before it even went to court. A federal Bankruptcy Court’s decision to allow Fiat to buy the automaker last week exempted the “new” Chrysler from past product liability claims. Now consumer groups are mobilizing to block General Motors from seeking similar protections in bankruptcy.
[...]
On Wednesday, an ad hoc committee representing hundreds of people injured in GM and Chrysler vehicles launched a television ad campaign protesting government-managed restructurings that throw “consumer safety protections out the window.”
“We all want GM and Chrysler to thrive—but not at the cost of our own survival,” one spot says.
Lawyers are scrambling to file paperwork today to oppose the sale of GM’s assets. Christine Spagnoli, president of Consumer Attorneys of California, said the automakers’ pledge to guarantee warranties, parts and maintenance is misleading to customers.
“They’re saying, ‘If your brakes are bad, we’ll fix them. But if you crash and get hurt because your brakes are bad, we don’t want to be accountable for that,’ ” she said.
Warriner will still be able to seek compensation from the “old” GM and Chrysler, which will stay in bankruptcy to liquidate real estate and other hard-to-sell assets. But senior Treasury advisor Ron Bloom told a Senate committee that personal injury awards would probably be smaller.
The LA Times is right to highlight the injustice being done to Mr. Warriner. But it should have been just a deligent when Obama was sticking it to retired cops and teachers ram through a deal that obliterated contract law…to reward some key political donors.
