In
the lawsuit, plaintiff Robert Scheuers claims he was injured
when his 2003 Saturn Ion ran off the highway, became airborne
and then struck the ground and trees in May 2014. The front air
bag did not deploy, which Scheuer blamed on the switch despite
having followed GM's instructions to remove all but a single key
from his key ring.
GM has argued there is no proof that the switch caused or
exacerbated Scheuer's injuries. “Each bellwether case will be
tried on its own merits," GM spokesman Jim Cain said.
It is the first of six trials this year before U.S. District
Judge Jesse Furman in the Southern District of New York, who
oversees litigation from crash victims and from customers who
say their cars lost value.
While not binding on other cases, the verdict will provide
insight into the strengths of both sides' evidence as GM looks
to wrap up the remaining switch litigation. It has already
agreed to pay roughly $2 billion in civil and criminal penalties
and settlements over the switch.
In February 2014, GM began recalling 2.6 million cars with the
faulty switch, which can slip out of place, stalling engines and
preventing air bags from deploying. Evidence emerged that some
individuals at GM were aware of the problem much earlier.
Scheuer, whose complaint says he suffers from continuing neck
and back pain as a result of his injuries, is asking the jury to
find the switch's failure prevented the air bags from protecting
him. He also says GM put him at risk by delaying the recall and
doing too little for customers. He will seek punitive damages
based on GM’s “intentional post-bankruptcy conduct,” according
to his lawyer, Robert Hilliard.
The case's focus will be limited to GM's actions after its 2009
bankruptcy, which left many liabilities with "Old GM" while
creating "New GM" from its profitable operations, thanks to a
ruling last year from the bankruptcy judge.
GM paid $900 million in September to end a related U.S. criminal
probe, and took a $575 million charge to settle about 1,380
injury and death cases and shareholder litigation. It also
resolved 399 injury and death claims through an independent
fund. Several hundred lawsuits for injuries, deaths and lost
vehicle value remain.
The case is In re General Motors Ignition Switch Litigation,
U.S. District Court for the Southern District of New York, No.
14-2543.
(Reporting by Jessica Dye; Editing by Alexia Garamfalvi and
Leslie Adler)
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