Lemon,Law,Claims,Survive,Chrys law Lemon Law Claims Survive Chrysler Bankruptcy
When you work with an attorney, you will have no problem reducing the risks associated with getting your case in front of a judge and jury, or other formal court, when you need to. However, every case is different. It is important to work wi Bankruptcy is a situation, wherein an individual is termed as unable to discharge all the debts. When a person or a company is not able to pay off its creditors, it has an obligation to file a bankruptcy suit. In fact, a bankruptcy suit is a
Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-priority:99;mso-style-qformat:yes;mso-style-parent:"";mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-para-margin:0in;mso-para-margin-bottom:.0001pt;mso-pagination:widow-orphan;font-size:10.0pt;font-family:"Calibri","sans-serif";}On April 30, 2009, one timeautomotive giant, Chrysler LLC filed a voluntary petition for Chapter 11bankruptcy protection. Chryslers filing, with 39.3 billion in assets, is theseventh-largest bankruptcy in U. S. History.At the time of filing, there weresome 1,350 consumer lawsuits pending nationwide against Chrysler for violationsof so called Federal and State Lemon Laws. The filing of bankruptcy, alongwith the automatic stay imposed by the Bankruptcy Code, brought these LemonLaw claims to a screeching halt. Consumers could take no further action of anykind against Chrysler. Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-priority:99;mso-style-qformat:yes;mso-style-parent:"";mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-para-margin:0in;mso-para-margin-bottom:.0001pt;mso-pagination:widow-orphan;font-size:10.0pt;font-family:"Calibri","sans-serif";}In general, LemonLaws give rights and remedies to consumers with problematicvehicles. They require manufacturers, or manufacturers authorized dealers, torepair defective vehicles within a reasonable time. If repairs are not madewithin a reasonable time, then Lemon Laws require the manufacturer to replacethe vehicle, refund the purchase price, or pay damages to the consumer. MostLemon Laws also require the manufacture to pay the consumers attorneyfees. As part of the Chryslerreorganization plan, a proposal to sell the majority of its assets to ItalianAuto Manufacturer, Fiat, and then join Fiat in forming a new, stronger, moreefficient Chrysler Company was submitted to the Court. Objections, motions andarguments were heard. On June 1, 2009, the Bankruptcy Court entered an Orderapproving and authorizing the Fiat Transaction. As a result, a New Chryslerautomotive manufacturer was born.According to documents filed withthe Court on June 30, 2009, the New Chrysler agreed to assume certainliabilities of the bankrupt Chrysler. These liabilities include pending andfuture Lemon Law claims. This means that the 1,350 consumers, who were stoppedfrom pursuing their lawsuits because of the bankruptcy, are now able to resumelitigation in courtrooms across America.Through a process outlined in courtdocuments, the New Chrysler will assume the liability of bankrupt Chryslerand be substituted as the defendant in pending Lemon Law litigation. FutureLemon Law claims will be brought directly against the New Chrysler. Consumerswill have the same rights and remedies against the New Chrysler as they hadprior to the Chapter 11 filing. The Bankruptcy Court is expected to approve andorder the New Chrysler assumption of Lemon Law liability as early as July16, 2009.
Lemon,Law,Claims,Survive,Chrys