News

GM victims fund to have wide eligibility

GM victims fund to have wide eligibility

GENERAL MOTORS:Chief Executive Officer Mary Barra previously said the fund was intended to compensate “every single person who suffered serious physical injury or lost a loved one” as a result of the bad switch. Photo: Associated Press

(Reuters) – The compensation fund for victims of General Motors Co’s defective ignition switch will be open to a broad range of people and should finish its work by the end of the second quarter of next year, the attorney in charge of the fund said.

Kenneth Feinberg, in an interview ahead of Monday’s announcement on how the fund will operate, said he had no idea how many people would file claims or whether the number of deaths linked to the faulty switch would rise from the 13 GM has identified.

Claims on the fund can be filed for five months starting Aug. 1, he said.

In February, GM began recalling 2.6 million older-model cars, including Chevrolet Cobalts and Saturn Ions, linked to the defective switch, which can be jarred out of the run position and deactivate power steering, power brakes and air bags.

Chief Executive Officer Mary Barra previously said the fund was intended to compensate “every single person who suffered serious physical injury or lost a loved one” as a result of the bad switch. She also has said Feinberg, the architect of compensation funds for victims of high-profile catastrophes including the Sept. 11 attacks, would determine who was paid and how much, and there would be no cap on the payout.

Details of the compensation program began to emerge during congressional testimony by Barra on June 18 and in subsequent interviews with plaintiffs’ lawyers.

However, Feinberg declined to speculate how many claims would be filed or how many deaths may end up being linked to the faulty switch, something GM said he would ultimately determine.

“I don’t know about 13 or 50 or whatever,” he said. “I will not speculate until people file a claim.”

During the hearing, U.S. Representative Diana DeGette of Colorado suggested there could be as many as 100 deaths linked to the faulty switch.

Feinberg also declined to estimate how big the ultimate payout could be. Safety advocates have called on GM to create a fund of more than $1 billion.

Feinberg identified several factors that would not prevent someone from filing a claim, including driver negligence. Other factors that would not prevent the filing of a claim also include whether an accident occurred before GM’s 2009 bankruptcy filing and whether people had previously settled claims with the No. 1 U.S. automaker.

However, if someone accepts compensation, they would waive the right to sue GM.

While Feinberg expects to wrap up the fund by the end of June, it would remain open as long as needed to process claims.

The filing period, which ends Dec. 31, provides “ample time to come up with the documentation to corroborate their claim,” Feinberg said. However, it is shorter than the time GM is taking to repair all the affected cars as the Detroit company has said it expects to have most of the cars fixed around October.

(Reporting by Ben Klayman in Detroit; Editing by Bernard Orr)

Recent Headlines

in Entertainment

This weekend in entertainment history

rainman

A look back on some of Hollywood's most memorable headlines.

in National

Amanda Knox murder conviction overturned

FILE - In this Jan. 31, 2014, file photo, Amanda Knox prepares to leave the set following a television interview in New York. Knox is engaged to Colin Sutherland, a musician who recently moved to Seattle from New York, a person close to the Knox family confirmed for The Associated Press. Knox’s murder conviction in the 2007 stabbing of her roommate has been reinstated by an Italian court, but the former college exchange student maintains her innocence and vows she won’t willingly go back to Italy. Both Knox and Sutherland are 27. No wedding date had been set.

Italy's highest court has overturned the murder conviction against Amanda Knox, bringing to a definitive end the high-profile case.

in National

Time for Iran to make tough decisions in nuclear talks

In this March 26, 2015, photo, Iranian Foreign Minister Mohammad Javad Zarif, center, leaves a meeting with U.S. Secretary of State John Kerry and other U.S. officials at a hotel in Lausanne, Switzerland. U.S. and Iranian diplomats gather at a Baroque palace in Europe, a historic nuclear agreement within reach. Over Iraq’s deserts, their militaries fight a common foe. Leaders in Washington and Tehran, capitals once a million miles from each other in ideological terms, wrestle for the first time in decades with the notion of a rapprochement.

Six world powers and Iran move closer to a deal, but there are still major disagreements.

in Sports

This week’s top sports shots

AP564917773040_12

A look at some of the biggest plays and best photos in sports this week.

in Sports

This weekend’s sports schedule

playball

A look at some of this weekend's biggest sporting events.