Automaker Bankruptcies May Affect Victims of Defective Products

Among the many problems presented by the bankruptcy of Chrysler, and a likely one by GM, is compensation for those injured by Chrysler and GM vehicles. This New York Daily News piece tells the tragic story of Amanda Dinnigan.

Injured by defective seatbelt in a GMC Envoy, 8-year-old Amanda is now a quadriplegic. Her loving family has installed what amounts to an in-home intensive care unit. Her annual healthcare costs presently reach $500,000, and are sure to continue rising as she grows older.

To provide Amanda care for the rest of her life, proper compensation would be many multiples of her yearly healthcare bills. Unfortunately, her family is considering settling her case for pennies on the dollar because they may have not any other choice: if GM goes bankrupt, the Dinnigans get nothing.

One solution proposed is a fund similar to the 9/11 Victims Fund established by Congress. For families like the Dinnigans, such a Fund could serve as a financial lifeline. The alternative is the unthinkable: that this already unfortunate family could itself go bankrupt.