Chrysler and the lemon laws


Sounds like you won't get your money
Ah yes, the another case of "special exceptions."

Chrysler's bankruptcy is throwing a wrench into California's lemon law, which is intended to make it easier for consumers to get refunds for defective vehicles. As the automaker's bankruptcy grinds away, settlement checks from Chrysler to unhappy car buyers are bouncing and complaints are stymied in and out of court.

<snip>

Since Chrysler filed for Chapter 11 bankruptcy protection April 30, financial claims incurred before the filing can be paid only if approved by the bankruptcy judge. Chrysler has not asked for permission to make payments on lemon law complaints -- and that is causing headaches for some of its customers.

Alex Simanovsky, an Atlanta attorney whose firm handles lemon law cases in California and other states, said he had "a stack of six or seven checks in my drawer right now from Chrysler that have bounced." The amounts range from $2,000 to $3,000 for clients who were accepting cash payments to as much as $40,000 in cases where Chrysler agreed to repurchase the vehicle.

"There has been no determination if these accounts are going to be unfrozen [by the Bankruptcy Court] and the checks will be good," Simanovsky said. "My feeling is they will not be."

I don't think bankruptcy is a reason to ignore the uniform rule of law.

But I suspect Chrysler executives do. And I bet that given the Federal government involvement, they will get away with it.

Boom!! Another "competitive advantage" backed by government force.

Hat tip Brain Terminal.

— NeoWayland

Posted: Sat - May 16, 2009 at 01:37 PM  Tag


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