Consumer Law

When it Comes to Injured Consumers, Chrysler is Bankrupt in More Ways Than One

By Andy Hoffman

The civil justice implications of the country?s financial struggles don?t often make it into the headlines, but an Indiana man named Jeremy Warriner will be testifying before the House Judiciary Committee today to discuss at least one of them in a very personal way, so we wanted to give you the heads up.

In 2005, Warriner, 34, was in a crash and fire in a Jeep Wrangler that ultimately cost him both of his legs.
"Qualified experts have examined the wreckage of my Jeep and determined that the fire was caused by a defect in the design of the vehicle," Warriner said. "For that reason, I have been pursuing the lawsuit against Chrysler since shortly after the accident happened."

There?s just one catch.  Under a bankruptcy plan brokered by the Obama administration, Warriner, along with ?hundreds? of other injured consumers, would be prevented from bringing his lawsuit against the company. 

For Warriner, the news could hardly be worse.  After 38 surgeries and more than $1 million in medical bills, he uses artificial legs to walk in public, and a wheelchair at home.  And like so many other Americans, his job was recently cut.  He continues to need financial help. 

And it?s not like there aren?t ways to do that.  Chrysler could set aside money to cover these claims or require a special insurance policy, according to Norman I. Silber, a law professor at Hofstra University, who specializes in consumer law.  Ted Eisenberg, a professor of law at Cornell University, suggested that Chrysler could have asked the court to give special payment consideration to those injured by the company?s products.

?People are throwing billions around like nickels, why not put another billion dollars into this to take care of consumer injuries, like we are taking care of all the financial institutions?? wondered Clarence Ditlow, executive director of the Center for Auto Safety, who is among those who will testify on the Hill today.  Consumer groups like Public Citizen and Consumer Action are also hoping to persuade Congress to intervene.

"I can't think of another major industrial company that sells to consumers that says to those consumers - drop dead," said attorney Scott Nealey, who has about a dozen lawsuits pending against Chrysler.

?My message is that people who have been injured deserve the opportunity to face Chrysler in court or mediation,? said Warriner.  ?Bankruptcy serves a purpose, but I don?t believe it is for businesses to avoid liability for their products.

Full post as published by ThePopTort on May 21, 2009 (boomark / email).