Congress wants answers from General Motors CEO Mary Barra about why the company waited years to recall defective cars.
Mike SunnucksSenior Reporter- Phoenix Business JournalEmail | Twitter | Facebook
Trial lawyers and plaintiff’s attorneys are not always the most popular crowd, especially with businesses.
But there are plenty of indications that it was attorneys for a Georgia woman killed in a 2005 Chevrolet Cobalt crash who uncovered ignition switch problems that General Motors either ignored or failed to disclose for more than a decade.
Otherwise, the ignition problem and its link to at least 13 deaths might not have been unearthed, according to Steve Leshner, a Phoenix product liability and malpractice attorney who has sued GM in the past.
Brooke Melton‘s attorneys hired an engineering expert who collected ignition switches from various Chevy cars and discovered there had been changes because of problems with stalling. That’s what Melton’s family alleges caused of the fatal crash on Brooke’s 29th birthday.
GM has recalled more than 20 million cars this year, and Arizona car dealerships are backlogged with vehicles waiting for parts.
Leshenr said it appears that Melton’s law firm, aided by court orders for GM to turn over evidence, uncovered the ignition switch problem and a possible cover-up. He has seen similar behaviors by other companies being sued, and they often battle to keep plaintiffs from getting their hands on evidence and paper trials.
Leshner – who served as president of the Arizona Trial Lawyers Association – expects to see more consumer lawsuits against GM for injuries suffered because of recall-related problems. GM could also face consumer fraud lawsuits.
Leshner said auto dealers – including those in Phoenix – could also be sued by consumers. “Any part who is involved in the stream of commerce in the product could be named,” he said.
The U.S. automaker already paid a $35 million fine for not reporting the ignition problems to federal regulators. GM had a $3.8 billion profit and revenue of $155 billion last year.
GM CEO Mary Barra was on Capitol Hill again yesterday and was grilled by lawmakers over the recall, how the company handled the problems and the appearances of a corporate cover-up. Barra disagreed with a contention from U.S. Rep. Phil Gingrey, R-Ga., that if it was not for plaintiffs attorneys’ discovery efforts the ignition problem would not have been unearthed. She and GM attorney Anton Valukas insisted there was not an organized company cover-up of the switch problem. She pledged that she is working to improve GM’s corporate culture and safety protocols.
Barra also said in her testimony the smaller percentage of recalled cars actually fixed was not because of a months-long parts backlog reported by auto dealers, but because consumers had not brought their cars in for repairs. GM dealers in Phoenix – and elsewhere – say it is sometimes taking months to get parts for and repair recalled Chevrolets and other cars.
GM is paying for rental cars – sometimes for months – for customers who do not want to drive recalled vehicles.
GM picked Chandler in 2013 for 1,000-worker, $21 million information technology center. The company received $1.5 million in job training grants from the state for the East Valley Center.