Justice Ginsburg Stays Chrysler Bankruptcy Sale; Court Taking a Hard Look at Whether Sale Is Legal

June 8, 2009

Justice Ginsburg Stays Chrysler Bankruptcy Sale; Court Taking a Hard Look at Whether Sale Is Legal

Statement of Adina Rosenbaum, Attorney, Public Citizen* and Clarence Ditlow, Executive Director, the Center for Auto Safety

We are extremely gratified that Associate Justice Ruth Bader Ginsburg has stayed the Second Circuit’s order affirming the approval of the bankruptcy sale of Chrysler under an agreement that would eliminate all current and future product liability claims of people injured or killed by defects in Chrysler vehicles. Justice Ginsburg’s order stays the sale until a further order from her or from the entire Court.

The Center for Auto Safety, Consumer Action, Consumers for Auto Reliability and Safety, National Association of Consumer Advocates and Public Citizen oppose the Chrysler bankruptcy sale because it allows a “new Chrysler” to emerge from bankruptcy without taking any responsibility for people victimized by defective Chrysler vehicles. The fact that the sale would eliminate the rights of people who drive Chrysler cars and trucks and are harmed in future crashes is even more irresponsible.

Today’s order indicates that Justice Ginsburg, and, indeed, likely the entire Court, is taking a hard look at our arguments that the bankruptcy sale violates the rights of crash victims.

* Adina Rosenbaum is the attorney for all the groups. She filed briefs, argued before the Second Circut and filed an application with the Supreme Court to stay the sale.

 

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