GM Goes To Supreme Court Claiming That They Are NOT Responsible For Old GM Ignition Switch Lawsuits

That's one of the benefits of being a corporation: If the paperwork says you're a different "legal entity", then it's as though a new being was born, in the eyes of the law, and the old one ceased to exist. Same factory. Same workers. Same management. But the papers say "we're different" (due to bankruptcy).

Personally, I feel it's shameful what GM is doing. I'm not an expert in law, so I don't know if the courts will side with GM. If they do, then it's plain to see who the laws protect :-(

Actually - the NEW GM IS a different "entity" - and Old GM DID go through a Bankruptcy reorganization but still exists - ask the millions of bond holders who received pennies on the dollar about that one. THe NEW Gm only has part of the assets of the old one - it did not bring Pontiac and Saturn in with it among other things. And the old one DID NOT cease to exist - Old GM still has to liquidate its remaining assets - which included Pontiac, Saturn, its remaining inventory of Oldsmobile,Pontiac, and Saturn parts(and others) - plus patent right that the new GM did not take. That is why there are assets that these people can sue the OLD GM for. However - they are limited to what is left. AND they stand in line with all the others who were owed money as well - and will only get a percentage on the dollar of what is owed. The people involved actually bought the car from the OLD GM - and normally it is that entity that is responsible. The reason why they want to sue NewGM is that they want more money than they are likely to eventually get from the OldGM - so they are trying to stick it to the new company.

So - in fact - a NEW Company was born - on a particular date and time - and in the past - the new companies are not responsible for the Debts (THe primary reason for most bankruptcies) and liabilities of the old one. The question is - did the Old GM deliberately and specifically declare bankruptcy to avoid the product liability of this issue - where the law is not as clear. I doubt this issue was the ONLY issue regarding it. By the way - this is not corporate law - individuals also can declare bankruptcy - most often when their debts far exceed their ability to pay - and in both cases it is done to give the person a clean slate. (Note - it does not do that exactly since you also start with no credit standing). ANd with the exception of certain Government liabilites - the debts of the individual are also wiped out completely. That is why it is better for most credit companies to make arrangements with creditors who are behind BEFORE a bankruptcy - after which they will get nothing - Ask the creditors of Donald Trumps Casino's - they did not have the ability to sue the NEW corporations - when they went through bankruptcy and wiped out their debts - I know a person who sold Trump 10 Concert Grand Pianos - and was partially paid - but still owed over $300,000 - who almost lost his own business when he could not collect this debt.

The Bankruptcy laws and the Corporate laws are quite involved - and really need a Bankruptcy lawyer to handle at this corporate level - a regular lawyer is likely to be overwhelmed by the process. In this case - I would expect that the liability remains with the OLD GM - and not with the NewGM (THey both still exist and are technically different corporations) - for the cars made by the OLD Gm - and NewGM is responsible for cars IT made after it was formed.

On one hand if the new GM is not responsible for the old GM's sins, they can get away from the mess.

BUT the customers will see it as GM--old or new it makes no difference--raping customers legally if they pull this off.