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  • Writer's pictureKirk Hartley

GM Oral Arguments Suggest More to Come on When Bankruptcy Courts Can Cut Off Product Liability Claim

It appears more will soon be written on when, if ever, bankruptcy courts can cut off product liability claims against successor entities. That inference arises from news stories regarding the questions posed by Second Circuit judges during oral argument yesterday of some of the GM ignition switch cases. See LAW360 (here) (paywall) and Business Insurance (here). The issue is important for both direct claimants and co-defendants in tort cases.  LAW360 explained:

“At a closely watched appeal in which various claimant groups are seeking leave to target General Motors LLC, or New GM, Circuit Judges Chester J. Straub, Denny Chin and Susan L. Carney all expressed displeasure at U.S. Bankruptcy Judge Robert Gerber’s April 2015 decision to wall off the $47 billion auto giant.”

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