Aug. 28, 2009

Chrysler Right to Assume Liability for Post-Bankruptcy Claims, But Company Still Leaves Injured in the Cold

Statement of Adina Rosenbaum, Attorney, Public Citizen*

* Adina Rosenbaum represented five consumer organizations that objected in the Chrysler bankruptcy case to the sale of Chrysler free and clear of product liability claims.

The Chrysler Group has rightly - and after considerable pressure from consumer advocates - agreed to assume liability for product liability claims brought by people injured in post-Chrysler bankruptcy crashes involving cars sold before the bankruptcy. This assumption will provide important protection for people who have been injured since June 10 in accidents involving Chrysler vehicles sold pre-bankruptcy, or who will be injured in such accidents in the coming years.

As we explained to three courts in the bankruptcy case - the bankruptcy court, the appellate court and the U.S. Supreme Court - immunizing Chrysler Group from claims brought by such people is unconstitutional and unjust, and we are glad that Chrysler has reversed its stance. We hope that Chrysler also will agree to assume liability for people injured in pre-bankruptcy crashes. Those people, too, deserve to recover for their injuries.