Judith Elkin in Crain's Detroit Business: GM Ignition Recall May Haunt Delphi

03/24/2014


A faulty part in as many as 1.6 million vehicles could ignite legal and financial calamity for Delphi Automotive plc if it is held responsible for the actions of its bankrupt predecessor.

The Troy-based supplier of the defective ignition switch at the center of a massive recall, investigation and public shaming of General Motors Co. could face mounting scrutiny over the hot-button issue...

Delphi, along with GM, may have protection under Chapter 11 because the issues allegedly occurred before it emerged from bankruptcy on Oct. 6, 2009, but the laws are too ambiguous to predict what will occur, said Judith Elkin, partner at law firm Haynes and Boone, LLP in New York City.

"This case is interesting, and the laws have always been murky in product liability," Elkin said. "There's no question that Delphi will argue that they are free of any liability that happened before or during its bankruptcy proceeding, but that doesn't necessarily mean they are protected."

Excerpted from Crain's Detroit Business, March 24, 2014. To view full article, click here.

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