The real victims of Chrysler fallout
»Play Video
SEATTLE -- Own a Chrysler, Dodge or Jeep and if there's a big problem, you might be in big trouble.
Now that Fiat owns Chrysler, the new company is no longer responsible for any dangerous defects with the old Chrysler products.
This is going to affect people injured in Chrysler products and those who might get hurt in the future because of a design defect.
Consumer advocates say the bankruptcy court wiped out more than a billion dollars in pending class action and product liability lawsuits, and put the brakes on any future product liability claims.
The Chrysler bankruptcy has hurt a lot of people -- dealers, employees, investors. But no one has been hurt more than the people who've been horribly injured or killed in a Chrysler product because of a defect in that vehicle.
Seattle attorney Sim Osborn handles product liability cases. He says anyone with a vehicle made by the old Chrysler - the company that existed before bankruptcy - just lost some of their legal rights.
"If you buy a used Chrysler made before today and something goes wrong that causes an injury or causes a family member injury or death, (you have) no right, no product liability claims," Osborn said.
In short, you have no right to sue Chrysler.
"You cannot sue Chrysler," said Osborn. "That company no longer exists anymore. It's the new Chrysler."
Life for Jeanne and Joseph Polio of East Haven, Conn., changed forever on July 1, 2005. They were driving their 2000 Jeep Cherokee when it was T-boned by another vehicle. The Jeep rolled over and its roof collapsed, leaving Jeanne a quadriplegic with medical bills that have already exceeded a million dollars.
The Polios sued Chrysler, claiming the Jeep's roof was defective. Chrysler says it's vehicle was not defective and met all government safety standards at the time.
"All they are looking for is their day in court," says the couple's attorney, Timothy Pothin. "Chrysler's action and the outcome of the bankruptcy proceeding may deprive them of that."
"It's not honorable for Chrysler to be able to just walk away from this responsibility," said Jeanne Polio.
And the Polios aren't alone in their trouble.
Lorraine Pullano of Niagara Falls, N.Y., describes herself as "a 24-hour caregiver." Her husband, Nicholas Pullano, became a paraplegic when he was run over by his 1992 Jeep Cherokee.
In September of 2003, Nicholas Pullano was leaving for work when his Jeep wouldn't start. He was run over by the vehicle while he was under it, trying to jump-start it.
The 54 year old will spend the rest of his life in bed or a wheel chair.
"He cries a lot," his wife said. She blames stress for her heart attack. "It turned from a very loving, happy home to a very loving sad home."
The Pullanos sued Chrysler, claiming the vehicle's design and a lack of safety devices allowed the Jeep to roll over onto Nicholas Pullano. But Chrysler says it is not to blame for this accident. Because of the bankruptcy filing, the lawsuit is on hold and a jury may never get to decide.
"This is a company being bailed out by taxpayers for a second time," says the Pullano's attorney, Eric Dranoff. "To leave its customers high and dry when it's consumers who feed the machine is difficult to live with."
The Center for Auto Safety, a consumer group started by Ralph Nader, is telling car buyers not to buy a used Chrysler.
"Our advice to consumers buying a used Chrysler is to look for another brand because you will not have the same rights as if you bought a Ford or Honda," said Hofstra University Law Professor Norman Silber.
And what about people who already own Chryslers?
"Losing the product liability protection ought to lead consumers to think twice about holding on to those cars," Silber said.
Chrysler could not be reached for comment on Wednesday, but Michael Palese of Chrysler issued the following statement on Thurday:
"Chrysler is saddened anytime someone is injured in one of our vehicles. Our vehicles meet or exceed all federal safety standards and have excellent safety records. An injury resulting from an accident or contact with a motor vehicle is not evidence that a vehicle is defective.
"Bankruptcy is a complex and difficult process, but it became the only option available to produce a viable company. The other option, liquidation, would have had far dire consequences for employees, retirees, dealers, suppliers and creditors (including unsecured tort claimants).
":Chrysler will continue to work through the bankruptcy process in accordance with the law and the judge's rulings. Chrysler will take into account all creditors including those with legal claims against the company. We appreciate the sacrifices all of our stakeholders have made through this challenging bankruptcy process to support the creation of a vibrant new automotive company."
Now that Fiat owns Chrysler, the new company is no longer responsible for any dangerous defects with the old Chrysler products.
This is going to affect people injured in Chrysler products and those who might get hurt in the future because of a design defect.
Consumer advocates say the bankruptcy court wiped out more than a billion dollars in pending class action and product liability lawsuits, and put the brakes on any future product liability claims.
The Chrysler bankruptcy has hurt a lot of people -- dealers, employees, investors. But no one has been hurt more than the people who've been horribly injured or killed in a Chrysler product because of a defect in that vehicle.
Seattle attorney Sim Osborn handles product liability cases. He says anyone with a vehicle made by the old Chrysler - the company that existed before bankruptcy - just lost some of their legal rights.
"If you buy a used Chrysler made before today and something goes wrong that causes an injury or causes a family member injury or death, (you have) no right, no product liability claims," Osborn said.
In short, you have no right to sue Chrysler.
"You cannot sue Chrysler," said Osborn. "That company no longer exists anymore. It's the new Chrysler."
Life for Jeanne and Joseph Polio of East Haven, Conn., changed forever on July 1, 2005. They were driving their 2000 Jeep Cherokee when it was T-boned by another vehicle. The Jeep rolled over and its roof collapsed, leaving Jeanne a quadriplegic with medical bills that have already exceeded a million dollars.
The Polios sued Chrysler, claiming the Jeep's roof was defective. Chrysler says it's vehicle was not defective and met all government safety standards at the time.
"All they are looking for is their day in court," says the couple's attorney, Timothy Pothin. "Chrysler's action and the outcome of the bankruptcy proceeding may deprive them of that."
"It's not honorable for Chrysler to be able to just walk away from this responsibility," said Jeanne Polio.
And the Polios aren't alone in their trouble.
Lorraine Pullano of Niagara Falls, N.Y., describes herself as "a 24-hour caregiver." Her husband, Nicholas Pullano, became a paraplegic when he was run over by his 1992 Jeep Cherokee.
In September of 2003, Nicholas Pullano was leaving for work when his Jeep wouldn't start. He was run over by the vehicle while he was under it, trying to jump-start it.
The 54 year old will spend the rest of his life in bed or a wheel chair.
"He cries a lot," his wife said. She blames stress for her heart attack. "It turned from a very loving, happy home to a very loving sad home."
The Pullanos sued Chrysler, claiming the vehicle's design and a lack of safety devices allowed the Jeep to roll over onto Nicholas Pullano. But Chrysler says it is not to blame for this accident. Because of the bankruptcy filing, the lawsuit is on hold and a jury may never get to decide.
"This is a company being bailed out by taxpayers for a second time," says the Pullano's attorney, Eric Dranoff. "To leave its customers high and dry when it's consumers who feed the machine is difficult to live with."
The Center for Auto Safety, a consumer group started by Ralph Nader, is telling car buyers not to buy a used Chrysler.
"Our advice to consumers buying a used Chrysler is to look for another brand because you will not have the same rights as if you bought a Ford or Honda," said Hofstra University Law Professor Norman Silber.
And what about people who already own Chryslers?
"Losing the product liability protection ought to lead consumers to think twice about holding on to those cars," Silber said.
Chrysler could not be reached for comment on Wednesday, but Michael Palese of Chrysler issued the following statement on Thurday:
"Chrysler is saddened anytime someone is injured in one of our vehicles. Our vehicles meet or exceed all federal safety standards and have excellent safety records. An injury resulting from an accident or contact with a motor vehicle is not evidence that a vehicle is defective.
"Bankruptcy is a complex and difficult process, but it became the only option available to produce a viable company. The other option, liquidation, would have had far dire consequences for employees, retirees, dealers, suppliers and creditors (including unsecured tort claimants).
":Chrysler will continue to work through the bankruptcy process in accordance with the law and the judge's rulings. Chrysler will take into account all creditors including those with legal claims against the company. We appreciate the sacrifices all of our stakeholders have made through this challenging bankruptcy process to support the creation of a vibrant new automotive company."
