Appeal To Reject GM Liability Protection | News | HMG LLP

HMG And Sen. Blumenthal’s Appeal To Judge To Reject GM Liability Protection

August 31, 2017

CORPUS CHRISTI, Texas, April 16, 2014 /PRNewswire/ -- Today, HMG issued a statement in agreement with U.S. Sen. Richard Blumenthal's, D-Conn, appeal to bankruptcy judges that General Motors should be denied protection from liability claims in connection with the recall of 2.6 million vehicles.

Bob Hilliard, lead lawyer and partner at the Texas law Hilliard Munoz Gonzales LLP, requested a mandatory "Park It Now" injunction on April 4, says that GM has only one choice, to admit criminal behavior and fraud committed during the bankruptcy proceedings:

"GM has a Hobson's choice: go to Judge Gerber and admit they lied and committed fraud, or stay where they are sued and be accused of lying and committing fraud. The law abhors fraud and whether it's Judge Ramos or Judge Gerber, soon there will be a judicial reckoning for GM's criminal conduct."

These statements are in response to a story first reported in Free Press that GM plans to ask a bankruptcy judge for protection from claims arising from the defect. In a legal filing last week, GM said it was afforded protection as part of its 2009 bankruptcy reorganization and would ask a judge in New York soon to reaffirm that.

Sen. Blumenthal said:
"GM's recent actions in litigation demonstrate clearly that its intent to use the bankruptcy process to prevent many victims and their families from obtaining relief for the harms they have suffered. The judge in these cases should deny GM this shield. Further, regardless of the legal battles, the company should simply do right by these victims and establish a compensation fund that will make them whole."

THE CLASS ACTION LAWSUIT
In March, Hilliard filed the first class-action lawsuit in the nation against GM on behalf of victims, families and survivors of those injured or killed in crashes caused by a faulty ignition switch in eight GM models. It is believed that over 300 deaths have occurred because of the problem, which GM admits it has known about since 2004. GM recalled 1.6 million affected cars in February 2014, ten years after discovering the dangerous equipment failure.

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