Last month, a few class action lawsuits have been filed against General Motors over the faulty ignition switch systems installed in over 1.6 million of its automobiles manufactured between 2003 and 2007.  The defect could cause vehicles to simply shut off while driving, and a host of other potential problems.  The defect, by GM’s own statements, is a very dangerous one.  I filed one of the class action lawsuits on behalf of one of my clients, who is the owner of a 2007 Chevy Cobalt that contains the defect.

According to the defect notices that GM filed with the National Highway Traffic Safety Administration, GM knew of the ignition switch issue since at least 2004.  It is not disputed that at least 12 individuals have died as a direct result of the defect, and there could be many more deaths that have not been properly reported.  So, GM knew of an issue for ten years and did nothing to stop it while it was literally killing people.  Worse, they took steps to conceal the defect from the public.

GM filed for bankruptcy in 2009 and became a new company.  It is now legally known as General Motors LLC.  Some legal analysts have suggested that GM could use its bankruptcy as a shield from liability from the current lawsuits since the defective vehicles were manufactured prior to the bankruptcy case.  I do not think this argument is a winning legal argument because GM cannot be absolved of liabilities that it concealed from the bankruptcy court.

But perhaps more importantly than which arguments would win in court is what it means to do the right thing.  I cannot imagine what it must feel like to be the father of a child who lost his life as a direct result of the failure of a GM ignition switch.  To subject these families to the insult of having to sit through a legal kabuki play that involves sections of the bankruptcy code and various legal technicalities would be abhorrent.

Further, there are millions of people who, frankly, have been ripped off by GM.  They own vehicles that nobody will ever want to buy.  And they are scared to drive them because the next time they get behind the wheel may be the last moment of their life.  They have lost the use of their vehicle and have lost the resale value.

Toyota just paid $1.2 billion to settle its accelerator defect issues.  The GM recall is likely to be bigger than Toyota’s.  It seems like liability for GM is inevitable.  The instinct of lawyers is to fight hard in these situations.  Perhaps the lawyers advising GM at this very moment are suggesting that they play the bankruptcy card immediately and to the end.  But that’s not the right thing to do.  According to Warren Buffett, the billionaire investor and a GM shareholder, GM should “Get it right, get it fast, get it out, get it over, but get it right first.”  GM would be wise to heed his advice.

— Kassem Dakhlallah is a senior partner with At Law Group, PLLC.  His practice focuses on complex litigation, including class actions, representative actions, commercial litigation, civil forfeiture and personal injury. He can be reached at (313) 406-7606 and kd@atlawgroup.com.