Chrysler Bankruptcy Denies Consumers Their Day In Court

In the federal government’s rush to get Chrysler through bankruptcy court, little attention was paid to a particular group of creditors pushed aside in the proceedings: People injured in defective vehicles made by Chrysler. Under terms approved in U.S. Bankruptcy Court in June, the “new” Chrysler emerged without liability for product defect claims involving vehicles sold by the pre-bankruptcy Chrysler. Now that Chrysler’s merger with Italian automaker Fiat is official, consumers injured in a defective pre-bankruptcy Chrysler will have no legal recourse. The same holds true for families of those who are killed in defective vehicles purchased before the bankruptcy. It’s estimated that there are more than 10 million Chrysler cars, vans and trucks on the road. It should be noted that Chrysler can be held liable for injuries or deathscaused by defective vehicles purchased after the bankruptcy. If the defect causing the injury was a component manufactured by a company other than Chrysler, there may still be hope, and actions may still be brought against those other companies whose products may have caused accidents. Victims and their families who feel that they have suffered serious harm as a result of any vehicular defect should contact a competent attorney immediately to ensure their rights are protected. Lemon Laws Still Apply Though consumers can’t sue Chrysler for defectivevehicles sold before the bankruptcy, they still have the legal protections of “lemon laws.” Lemon laws differ from state to state, but in general they protect consumers who purchase vehicles that have repeated, costly mechanical problems. To be covered by the Illinois lemon law, your vehicle must have a problem that substantially affects its use, market value or safety. A dealer must have tried and failed to fix the problem at least four times and the vehicle must be out of service for a total of 30 business days or more. (Used cars aren’t covered by the Illinois lemon law). If your new vehicle (purchased or leased) meets all of those standards, you might be eligible to get a vehicle exchange or refund of the purchase price from the dealer. The Attorney General of Illinois urges all owners of new or leased vehicles to keep all receipts and records pertaining to your vehicle repairs.