GM won’t limit ignition switch crash compensation

Rosie Cortinas, center, from Homedale, Idaho, mother of Amador Cortinas, with her daughter Monica Coronado, left, and Laura Christian, of Harwood, Md., birth mother of Amber Marie Rose, right, wipes away tears as she listens to Kenneth Feinberg, the independent claims administrator for the GM Ignition Compensation Program, announces the details of the program, including eligibility, scope, rules for the program, and timing of submitting claims, during a news conference at the National Press Club in Washington on Monday. Amador Cortinas, was 23 years old, when he died of a vehicular accident allegedly involving a defective GM vehicle, Rosie Cortinas claimed. (AP Photo / Manuel Balce Ceneta)

WASHINGTON (AP) — The attorney overseeing General Motors’ compensation to victims of small-car crashes says there’s no limit to what the company will pay, provided the crashes were caused by faulty ignition switches. The tally could climb into billions of dollars.

GM links 13 deaths to defective ignition switches in cars such as the Chevrolet Cobalt and Saturn Ion. But trial lawyers and lawmakers say hundreds of others could file claims of wrongful death and injury.

Kenneth Feinberg, one of the country’s top compensation experts, said Monday that GM has placed no cap on the total amount he can pay to injured people or relatives of those killed. And he alone — not GM — will decide how much they each will get, even though he is being paid by the company, which did not like some of the program’s provisions.

Feinberg would not estimate the ultimate cost for GM, saying he has no idea how many claims will be made. But based on the methodology he plans to use, a large number of claims could raise the total settlement into the hundreds of millions of dollars, if not billions.

“GM has basically said whatever it costs to pay any eligible claims under the protocol, they will pay it. There is no ceiling,” Feinberg said at a news conference in Washington.

With the plan, GM is trying to limit its legal liabilities, control the damage to its image and eventually move beyond the crisis caused by its failure to correct the ignition-switch problem for more than a decade, even as it learned of fatal crashes. The company recalled 2.6 million older small cars earlier this year to replace the switches.

Only those hurt in crashes caused by the small-car ignition switches are eligible, so the program excludes other GM safety problems. Claims will have to prove that the switches caused the crashes. Once a claim is settled, victims give up their right to sue the company.

Claims can be filed from Aug. 1 to Dec. 31. Once the filing is complete, Feinberg promises payment in 90 to 180 days in most cases.

Rate this article: 

No votes yet