Special Counsel Benjamin D. Feder Discusses GM Ignition Switch Liability in Lexblog Network TV Video Interview

Special counsel Benjamin D. Feder is interviewed by The Lexblog Network TV (LXBN TV) in the segment, LXBN TV: Why GM May Avoid Ignition Switch Liability Due to Bankruptcy Proceedings.” The interview discusses the extent to which GM’s 2009 bankruptcy will affect the amount of liability the manufacturer will face due to faulty ignition switches that have led to the recall of more than 2.6 million cars. Mr. Feder says, There is a clash between two very fundamental principles: on the one hand you have bankruptcy, the idea that companies are allowed to use the bankruptcy code to shed their liabilities, maximize their value and most importantly sell their assets free and clear of their liabilities to new purchasers. Among other things, it saves thousands of jobs. But you also have another very fundamental principle, which is due process, the idea that people are entitled to notice of proceedings that will affect their rights.” Ultimately, however, Mr. Feder believes, New GM will be able to use the 2009 sale order as a shield to protect themselves from a significant portion of the claims.”

Ben Feder Discusses How GM's Bankruptcy Affects Ignition Switch Liability