June 30, 2009

Accident Victims Stand to Lose in GM Deal

In Restructuring Plan, Automaker Tries to Shed Hundreds of Product Liability Lawsuits

  • Play CBS Video Video GM Plaintiffs Take Back Seat

    Accident victims and others suing General Motors are ending up at the back of the line for payments under GM's bankruptcy reorganization, reports Randall Pinkston.

  • Amanda Dinnigan, shown before an auto accident that left her severely injured.

    Amanda Dinnigan, shown before an auto accident that left her severely injured.  (CBS)

  • Fast Facts Obama Auto Industry Plan

    What's in store for GM and Chrysler after automakers' restructuring plans are spiked.

(CBS)  Arlene Dinnigan was driving her GMC Envoy when it slammed into a tree. Her daughter, Amanda, who was strapped in with a seatbelt was severely injured, reports CBS News correspondent Randall Pinkston.

Dinnigan can't help but feel that it was her fault.

Amanda is now a quadriplegic - she can barely move her head and needs a ventilator to breathe. Her father blames a faulty seatbelt design for Amanda's paralysis.

"The seatbelt went across her neck and almost took her head off," Robert Dinnigan, Amanda's father said. "It broke her neck."

Amanda's around the clock care costs nearly $500,000 a year, but after two years, the family's insurance is about to max out.

They filed a lawsuit against GM, hoping to recover damages to pay for Amanda's medical bills. But when GM went into bankruptcy last month, the Dinnegan's case was put on hold and may never be heard in a courtroom.

"I am her father," Robert Dinnigan said. "I have to fight for my little girl to get what she deserves. And I will not stop until Amanda gets her day in court."

Taking a page from Chrysler, GM and the government are trying to shed hundreds of product liability cases that have lead to injuries and deaths. That means the new GM will not be responsible for any claims filed before the June 1 bankruptcy.

Which is why the Dinnigans and other claimants, like Callan Campbell, were at the U.S. bankruptcy court today, urging the judge to allow their cases to go forward.

"Everyone should be compensated for what GM has neglected to make safe," Campbell said.

For now, Amanda and other claimants are being treated the same way as bondholders, vendors, lawyers - and everyone else owed money by GM. Whatever funds are left after bankruptcy will be divided among them.

"They've been hurt and if their day in court is taken away from them and the right to recover any medical expenses, lost wages or pain and suffering is taken away from them, they'll be hurt again," said Barry Bressler, an attorney.

If the bankruptcy court leaves claimants unprotected, advocates say Congress should force GM and Chrysler to set funds aside to compensate those who provided they're victims of defective vehicles.

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Add a Comment See all 11 Comments
by plkijn July 2, 2009 7:42 AM EDT
No wonder GM is broke if it has people like this trying to sue them. I suppose she sues GM because the tree doesn't have any money. Idiot driver should pay GM's court costs.
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by snoopy28173 July 1, 2009 1:45 PM EDT
It's sad about this young lady's case. They should make all seatbelts adustable like the ones in the front seat. I'm very short, and the seat belts in the back seat cover my face; so I put the strap behind me. The strap would do more harm for me in the case of an accident.

I get so tired of the insurane companies thinking their god and not providing the care that is promised in the contract. I get tired of these are companies bailing out on the debt they created and then stiffing the public with their mess.
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by rhs648 July 1, 2009 7:15 AM EDT
Again we make judgements based on a handful of paragraphs not much longer than a soundbite. The facts in this case could probably fill hundreds if not thousands of pages. Anything larger than a soundbite would probably bore most of us. However, is it right for us to draw conclusions when so many facts are missing?
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by Dubai_expat July 1, 2009 2:24 AM EDT
Come on, guys. This is the American legal system we're talking about, here.

Obviously the tree is fault... I'm sure John Edwards would take the case.
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by Newster1 July 1, 2009 1:27 AM EDT
Most quads like Amanda end up in state care. The father needs to get a clue. If her care is $500K a year then with inflation assuming she lives into her 70's, it could easily total 50-60 million dollars over her lifetime. That is precisely why these people end in in state care, because only the government can afford to pay for them."

The govt- that's us, is BROKE, we aint got a spare $50 million to throw away on one person when thousands cant even get basic health and dental care.
An overinjection of a drug cocktail will take care of this and save the state $50 million which could be better spent divided over a larger number of needy people than squandering it on one who will be confined to a wheelchair and can't move for the rest of her days, that's no life!
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by trinka72 June 30, 2009 11:01 PM EDT
Are you kidding me? What are all the facts in this case? How old was Amanda at the time when her mother's GMC ran into a tree? ( Last I knew Envoy's can't drive themselves) What was her mother doing that she ran into a tree? These stories make me sad because the children pay for the parents lack of education when it comes to child passenger safety. If Amanda would have been in a booster seat, the seatbelt wouldn't have been against her neck. States need to mandate booster laws for parents like this. Chances are, if Amanda would have been properly restrained in a booster, she would be running jumping and playing. I wouldn't blame GM for this, I'd blame the parents.
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by tautomer June 30, 2009 9:38 PM EDT
It's interesting that Obama is willing to screw these people but now the sacred UAW slobs.
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by Newster1 June 30, 2009 8:22 PM EDT
If the bankruptcy court leaves claimants unprotected, advocates say Congress should force GM and Chrysler to set funds aside to compensate those who provided they're victims of defective vehicles. "

Maybe they don't understand what bankruptcy means, bankruptcy means you cannot pay your bills, it means the company or person is insolvent and creditors basically get zippo to 10 cents on the dollar.
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by tautomer June 30, 2009 9:39 PM EDT
Yes but somehow they seem to be able to pay for the UAW retiree's exorbitant healthcare!
by Newster1 June 30, 2009 8:20 PM EDT
Arlene Dinnigan was driving her GMC Envoy when it slammed into a tree. Her daughter, Amanda, who was strapped in with a seatbelt was severely injured"

And somehow the seat bealt maker is at FAULT here? MOM loses contrl because MOM is yakking on the cell phone, not paying attention, distracted or sleepy, loses control of the vehicle she was legally required to have full control over at all times, SLAMS into a tree and somehow the seatbeat is at fault??
***!!!

The seatbelt kept her from going thru the windshield and being 100% DEAD.
MOM should have been given a citation for failing to maintain control of her vehicle and under the conditions of the road and weather at the time.
MOM is totally responsible in this case and should get ZERO dollars for the problem she caused.
Reply to this comment
by tmittelstaed July 1, 2009 1:14 AM EDT
Seatbelts wrapping around the necks of kids and breaking spines are a common result of putting a child in a regular seat without them sitting in a child booster seat. The booster seat raises the child and the seatbelt then is at the correct location across the chest, instead of the neck. Unfortunately the story leaves out all details that would matter but I would guess the child was short and the mother didn't have her in a booster seat. This isn't the fault of the automaker, as the seatbelts are only expected to be designed for adults. This is common knowledge and doctors have been trying for years to get the word out on this, unfortunately too many parents are unaware of it.

Most quads like Amanda end up in state care. The father needs to get a clue. If her care is $500K a year then with inflation assuming she lives into her 70's, it could easily total 50-60 million dollars over her lifetime. That is precisely why these people end in in state care, because only the government can afford to pay for them. And her father will be long gone by the time she dies. He should be concentrating now on how to get her permanently setup in state care, whether by declaring bankruptcy or whatever, rather than trying to get a legal windfall that will end up spent long before she dies.
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