Day on Torts
Here is a copy of the court order in the GM bankruptcy that makes tort victims stand in line with other general creditors of the company.
The discussion of successor liability issues begins on Page 50. Here is key language from Page 60 and 61:
This Court fully understands the circumstances of tort victims, and the fact that if they prevail in litigation and cannot look to New GM as an additional source of recovery, they may recover only modest amounts on any allowed claims—if, as is possible, they do not have other defendants who can also pay. But the law in this Circuit and District is clear; the Court will permit GM’s assets to pass to the purchaser free and clear of successor liability claims, and in that connection, will issue the requested findings and associated injunction. [Footnotes omitted.]