Yet another roadblock for GM litigation

With the smoke still rising from the first disastrous bellwether case, it now seems that the second GM ignition switch bellwether may suffer a similar fate.

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Things are not going well for plaintiffs’ attorneys in the GM ignition switch litigation. In January, the first in an ongoing series of bellwether trials that will determine the liability of automaker GM for defective ignition switches was thrown out after it emerged that the plaintiff had fabricated evidence. Now, the second case to be brought by plaintiffs’ attorneys has suffered a serious setback before even making it to trial.

Last week, Judge Jesse Furman ruled to throw out all but one of the claims brought by plaintiff Dionne Spain, who is suing over a 2014 road accident in New Orleans. Ms Spain is seeking damages from GM for injures inflicted by the crash and for GM’s failure to notify her earlier of the ignition switch defect.

However, of all the claims brought by Ms Spain, only one—a claim of fraudulent misrepresentation—will be taken to trial.

‘New GM’, as the company is now referred to, acquired only partial liability from ‘Old GM’ when it purchased its assets in bankruptcy in 2009, meaning that many current suits are required to prove the new company liable.

Ms Spain claimed that New GM had ‘manufactured’ her 2007 Saturn Sky—which she purchased second-hand in 2013—because it had a GM nameplate and came with a one-year warranty from the dealer. However, Judge Furman ruled to exclude this claim from the lawsuit as it was based on recollection and contradicted the sworn affidavit of a GM executive. ‘Apparent manufacturer’ claims, which are permitted under Louisiana law, also hold little water as New GM didn’t make or sell the car, Judge Furman wrote in a 16-page ruling.

A ‘redhibition’ claim based on the suggestion that Ms Spain wouldn’t have purchased the car had she known about the defect was also thrown out, as was the fraudulent misrepresentation claim brought on behalf of Ms Spain’s passenger, who was also injured in the crash.

Only Ms Spain’s own claim of fraudulent misrepresentation by New GM has endured, though Judge Furman tempered that this was based on a ‘half-truth’ theory because Ms Spain had purchased and driven the car during a period when New GM had failed to disclose the ignition switch defect.

The shaky outlook for the second bellwether is adding fuel to fears that lead plaintiffs’ attorney Robert Hilliard may have parted with the majority of sturdy cases to pursue in the bellwether process in an earlier deal with GM, which settled 1,400 claims with GM for $275m.

Jury selection for Ms Spain’s cases will take place on 14 March. Source: Forbes

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