GM offers victims more than $1 million - KYTX CBS 19 Tyler Longview News Weather Sports

GM offers victims more than $1 million

Posted: Updated:

NEW YORK (CNNMoney)- General Motors offered at least $1 million Monday to the families of those who died as a result of a defect in GM cars.

The automaker will give another $300,000 for each surviving spouse and dependent, in addition to a sum of money that will be determined by the victims' earning potential.

The automaker also said that it will not cap the total amount of money it will pay to the compensation fund.

At least 13 people died, and many more were injured as result of a faulty ignition switch installed in 2.6 million GM cars.

The automaker is also offering money to those injured in crashes that were caused by the defect in the cars.

Attorney Kenneth Feinberg, who devised compensation plans for victims after 9/11 and the BP oil spill, issued the details at a press conference Monday, about four months after GM recalled the affected vehicles. He was hired by GM (GM) in April as a consultant.

The 13 people that GM says were killed as a result of the ignition switch flaw died when the front airbags failed to deploy.

But Feinberg said for the first time today that any passengers killed or hurt are also eligible for compensation.

Additionally, the passengers and drivers in any other cars involved in a crash are all eligible, as are any pedestrians involved.

Victims may file a claim even if their own negligence, such as speeding or driving drunk, contributed to the crash.

GM employees first knew that the ignition switches were malfunctioning back in 2004. But the automaker didn't issue a recall until a decade later. Some deaths and injuries could have been avoided had the recall been issued sooner.

Payouts to those who suffered serious, life-altering injuries will be determined on a case-by-case basis. Those with less serious injuries will be paid depending on the number of nights they spent at the hospital. Someone who spent one night in the hospital will receive $20,000, while someone hospitalized 32 nights or more will be paid $500,000.

The compensation plan does with a caveat: Any victim who accepts the money waives their right to sue GM. The program is voluntary, and victims can bypass the whole program and take GM straight to court instead.

But taking the automaker to court could be an uphill battle since a bankruptcy court gave the company a liability shield for incidents that happened prior to its filing in 2009.

Anyone who lost a loved one or was seriously injured in a crash related to the recall can file a claim with GM between Aug. 1 and Dec. 31, 2014.

Feinberg also said he will hold a private meeting with any claimant that wishes to do so.

 

  • Local NewsMore>>

  • Capital Murder defendant Calvert wheeled, unwilling, into district courtroom

    Capital Murder defendant Calvert wheeled, unwilling, into district courtroom

    Thursday, August 21 2014 6:38 PM EDT2014-08-21 22:38:39 GMT
    James Calvert was wheeled into Judge Jack Skeen Junior's courtroom Thursday afternoon in what appeared to be a catatonic state and seemingly restrained as deputies balanced him on a wheelchair while supporting his legs.More >>
    James Calvert was wheeled into Judge Jack Skeen Junior's courtroom Thursday afternoon in what appeared to be a catatonic state and seemingly restrained as deputies balanced him on a wheelchair while supporting his legs.More >>
  • Officer Involved Shooting Suspect's Mom Speaks Out

    Officer Involved Shooting Suspect's Mom Speaks Out

    Wednesday, August 20 2014 11:13 PM EDT2014-08-21 03:13:22 GMT
    LONGVIEW (KYTX) - Hope Fountain says the shadow of recent events has covered up who her son really was."You'll never replace those hugs and those smiles. He would always be there for you no matter what." - Hope Fountain, Wagner's MotherGregg County Jail Records show that Wagner has a violent past but Fountain says he has regretted his crimes since the day they were committed. In 2013, Wagner plead guilty to terroristic threats of a public servant. Fountain says Wagner was going through a roug...More >>
    LONGVIEW (KYTX) - Hope Fountain says the shadow of recent events has covered up who her son really was."You'll never replace those hugs and those smiles. He would always be there for you no matter what." - Hope Fountain, Wagner's MotherGregg County Jail Records show that Wagner has a violent past but Fountain says he has regretted his crimes since the day they were committed. In 2013, Wagner plead guilty to terroristic threats of a public servant. Fountain says Wagner was going through a roug...More >>
  • Lawmaker, transportation commissioner urge voter passage of Prop 1

    Lawmaker, transportation commissioner urge voter passage of Prop 1

    LONGVIEW (KYTX) - Lawmakers and people in transportation gathered in Longview today,, asking for voter support of a constitutional amendment in November, meant to improve Texas roads. Proposition one, if passed, would divert half of the oil and gas revenue from the state's rainy day fund to TxDOT. Next budget year, that could amount to about 1.4 billion dollars. But speakers at today's transportation forum, hosted by Longview Chamber of Commerce at Pinecrest Country Club, say that's only abou...More >>
    LONGVIEW (KYTX) - Lawmakers and people in transportation gathered in Longview today,, asking for voter support of a constitutional amendment in November, meant to improve Texas roads. Proposition one, if passed, would divert half of the oil and gas revenue from the state's rainy day fund to TxDOT. Next budget year, that could amount to about 1.4 billion dollars. But speakers at today's transportation forum, hosted by Longview Chamber of Commerce at Pinecrest Country Club, say that's only abou...More >>
Powered by WorldNow

CBS19, MYTX & KCEB
2211 ESE Loop 323
Tyler, TX 75701
Phone (903) 581-2211
Fax (903) 581-5769

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KYTX. All Rights Reserved. Users of this site agree to the Terms of Service, Privacy Notice/Your California Privacy Rights, and Ad Choices.