By Larry Neumeister
Associated Press
NEW YORK (AP) - A federal judge told lawyers on Monday he'll encourage settlements in lawsuits brought on behalf of nearly 1,000 plaintiffs against General Motors for defective ignition switches.
U.S. District Judge Jesse M. Furman told dozens of lawyers at a hearing that he'll be careful not to interfere with the work of a bankruptcy judge who is deciding if the Detroit-based automaker's 2009 bankruptcy protects it from economic damages claims.
Furman said he wanted to be "sensitive about stepping on the toes" of the bankruptcy judge but planned to advance the litigation as much as possible nonetheless.
He made introductory remarks at an initial hearing after he was chosen to preside over more than 100 lawsuits that were consolidated in New York because of their common attributes.
Lawsuits were filed after General Motors Co. in February began recalling 2.6 million of the cars, mainly Chevrolet Cobalts and Saturn Ions. GM has acknowledged knowing that the switches in its small cars had problems since at least 2001. Federal law requires automakers to report safety defects to the government within five days of discovering them.
The ignition switches can shut off the engine, cutting power steering and brakes and potentially causing drivers to lose control. The problem also can disable air bags.
GM attorney Richard C. Godfrey told Furman that 983 plaintiffs had filed 109 lawsuits, with about a dozen of the lawsuits making personal-injury claims while the rest were solely for economic losses.
Published: Wed, Aug 13, 2014
