California Lemon Law Lawyer Blog

When Chrysler went through Chapter 11 bankruptcy protection earlier this year the court granted an important request to prevent current owners from suing the new company if they were injured by a safety defect in the future. But Chrysler has had a change of heart. It will accept responsibility if consumers who bought Jeeps, Chryslers or Dodge vehicles prior to its bankruptcy filing are injured by safety defects.

Mr. Palese said the company always listens to consumer groups and elected officials, but the major factor was that Chrysler now feels it can afford the future costs. He said he was not sure how much those claims might cost the company.

The new Chrysler/Fiat corporation that emerged from the bankruptcy proceeding will negotiate settlements with owners of vehicles manufactured by the old Chrysler corporation. This concession was made in response to publicity generated by consumer groups. The new company said it would "recognize, honor and pay liabilities under Lemon Laws for additional repairs, refund or replacement of a defective vehicle (including reasonable attorneys' fees)."

New Chrysler will not pay any civil penalties under the lemon laws. It remains to be seen just how far Chrysler is willing to go in negotiating settlements.

Persons who suffered personal injuries because of defects in Chrysler vehicles, however, are out of luck. Consumer groups and victims' petition to the U.S. Supreme Court to preserve their rights was denied on June 9, 2009.