GM compensation fund could pay millions to victims, families
By Nathan Bomey and Greg Gardner, Detroit Free Press | |
McClatchy-Tribune Information Services |
GM victim compensation director
Feinberg said current and former owners of 2.6 million small cars potentially affected by the defect will be notified that they may be eligible for settlements.
GM has identified at least 13 deaths and several dozen injuries connected to the problem, although those figures are expected to rise. Feinberg declined to speculate on how many people might be eligible or how much GM might pay out.
-- PDF: FAQ on GM ignition switch compensation
The compensation fund is unlimited, he said. If Feinberg determines that the defect was the "substantial cause" of the accident, he will use actuarial tables and average medical cost data to calculate the size of a payout. The families of people who died will get at least
Rimer said he plans to meet with his
Natasha was in a coma for 11 days and had a lengthy hospital stay costing
Under the Feinberg plan, Rimer said he believes his family would be eligible for
"She was just getting started in life," Rimer said.
Feinberg gave examples of payouts under his plan. The survivors of a 25-year-old deceased driver who was married with three children and earning
A 10-year-old passenger who became a paraplegic in an accident would be offered
Compensation for people who needed outpatient treatment within 48 hours of the crash would be capped at
"Money is a pretty poor substitute for loss," Feinberg said. "It's the best we can do."
Victims must submit evidence substantiating their claim -- such as police reports, hospital records, vehicle data, insurance information and even the car involved in the accident if it's still around.
GM can provide evidence to dispute victims' claims. But the company has agreed not to challenge the claims after Feinberg makes a determination.
A GM spokesman declined to say whether the company plans to submit evidence to fight any claims.
"We are pleased that
Feinberg's plan drew criticism from safety advocates and victims who said it requires a burdensome amount of documentation to reconstruct details about accidents that may have occurred more than a decade ago.
"It will be difficult, if not impossible, for a consumer to prove that ignition switch failure caused a crash if all they have is their statement that the ignition switch cut off," said
Feinberg acknowledged that substantiating claims will prove to be a "challenge." In the 9/11 fund, 97% of eligible families accepted offers. In the
The automaker has already collected information from about 3,500 people claiming to be victims, but Feinberg said some of those won't qualify because the people don't own GM vehicles.
If families accept a settlement, they must agree not to sue GM. If they choose to sue, GM plans to defend itself.
"People are not required to sign away any of their rights to sue until and unless they are satisfied with what the fund offers," Feinberg said in an interview.
Engineers discovered the defect more than a decade ago, but a breakdown in communication, incompetence among engineers and a lack of urgency failed to fix the problem or order a recall, according to a 325-page investigative report conducted by outside lawyer
No one injured or killed in GM vehicles not included in that recall will be compensated. No claims will be considered if the alleged damage was only economic, Feinberg said.
Feinberg, who outlined details of the fund this morning at the
Eligible claimants include drivers, passengers, pedestrians, occupants of another car hit by one of the 2.6 million GM vehicles, and their surviving family members in the case of deaths.
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Feinberg said he is not required to report the claims payouts to the GM board of directors, but he said he intends to give periodic updates to both GM management and the public. He said he expects payments to be made within 90 to 180 days of when they are filed.
"I suspect I will be sticking around (on this fund) through the first quarter of 2015," he said.
Victims' behavior that may have contributed to the accident, including intoxication, speeding or texting while driving, will not be considered, Feinberg said.
Those who settled cases arising from these specific defective ignition switches before the
Anyone seeking punitive damages against GM should pursue cases in the courts, Feinberg said. But he cautioned victims against suing GM to find out what really happened, saying that victims can trust the
"I'm here to compensate victims, not to punish
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