Blumenthal not completely happy with Chrysler sale

By John O'Brien | Jun 2, 2009


HARTFORD, Conn. (Legal Newsline) - Connecticut Attorney General Richard Blumenthal says Italian automaker Fiat must answer for any products liability claim against Chrysler.

In applauding Fiat's decision to honor lemon laws when it takes controlf of Chrysler's assets during bankruptcy proceedings, Blumenthal also said he is considering steps to prevent Fiat from escaping product liability for Chrysler vehicles.

"We cautiously celebrate this victory because the battle to protect consumers must continue vigorously in bankruptcy court," Blumenthal said.

"My office will consider steps to fight for Fiat to accept product liability for defective vehicles, particularly when defects cause serious injury... I hope that Fiat will acknowledge product liability, establishing itself as a good corporate citizen."

U.S. Bankruptcy Judge Arthur Gonzalez ordered the appeal of the sale to the Second Circuit Court of Appeals Tuesday. A group of Indiana pension funds is objecting to the sale.

Gonzalez approved the sale Sunday night.

Allowing Fiat to escape product liability would leave Chrysler consumers unprotected and unable to fully pursue claims related to defective vehicles, Blumenthal said.

From Legal Newsline: Reach John O'Brien by e-mail at john@legalnewsline.com.

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