Fleck v. General Motors LLC, 14-CV-8176

202 F. Supp. 3d 362, 2016 U.S. Dist. LEXIS 108405
CourtDistrict Court, S.D. New York
DecidedAugust 15, 2016
Docket14-MD-2543 (JMF); 14-MC-2543 (JMF)
StatusPublished
Cited by1 cases

This text of 202 F. Supp. 3d 362 (Fleck v. General Motors LLC, 14-CV-8176) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fleck v. General Motors LLC, 14-CV-8176, 202 F. Supp. 3d 362, 2016 U.S. Dist. LEXIS 108405 (S.D.N.Y. 2016).

Opinion

[363]*363OPINION AND ORDER

JESSE M. FURMAN, United States District Judge:

The next bellwether trial in this multi-district litigation (“MDL”), familiarity with which is presumed, involves claims brought by Plaintiff Stephanie Cockram against General Motors LLC (also known as “New GM”) stemming from a June 28, 2011 car accident. At the time of the accident, Cockram was driving her 2006 Chevrolet Cobalt, which had been manufactured by General Motors Corporation (also known as “Old GM”)—which filed for bankruptcy in 2009, a bankruptcy from which New GM emerged. New GM now moves, pursuant to Rule 56 of the Federal Rules of Civil Procedure, for partial summary judgment, contending that Cock-ram’s claims based on New GM’s conduct alone (the only claims that could expose New GM to punitive damages in light of earlier rulings by the United States Bankruptcy Court for the Southern District of New York) fail as a matter of law. (Docket No. 2938). For the reasons that follow, New GM’s motion is GRANTED in part and DENIED in part.

FACTUAL BACKGROUND

On December 31, 2005, Cockram, a resident of Virginia, purchased a new 2006 Chevrolet Cobalt. (Def. New GM’s Statement Undisputed Material Facts Pursuant to Local Civil Rule 56.1 (Docket No. 2939) ¶ 2). Roughly five-and-a-half years later, in the early evening of June 28, 2011, Cock-ram crashed her Cobalt into a drainage ditch culvert. (Id. ¶¶ 4-6; PL’s Local Rule 56.1 Resp. in Opp’n New GM’s Statement Undisputed Material Facts & Statement of Additional Facts (Docket No. 3016) (“PL’s SOF”) ¶ 44). Despite the frontal impact, the frontal airbags did not deploy, and Cockram was severely injured in the crash. (Id. ¶¶ 45, 49). In this action, Cock-ram brings various claims under Virginia law. (See Third Am. Compl. (14-CV-8176, Docket No. 393) (“TAC”) ¶¶ 421-432). More specifically, she seeks compensatory and punitive damages for her injuries resulting from the airbag nondeployment, claiming that it was caused by a defect in the ignition switch that allowed the switch [364]*364to move from the “run” to the “accessory” or “off’ positions. {See PL’s SOF ¶¶ 44-50; TAC ¶¶ 23, 421-432). Notably, she does not claim that inadvertent ignition switch rotation caused her car to veer off the road and crash—only that it caused the airbags to fail, enhancing or exacerbating her injuries.

BANKRUPTCY RULINGS

Before turning to New GM’s arguments for summary judgment, the Court briefly summarizes certain rulings by the Honorable Robert E. Gerber, former United States Bankruptcy Judge for the Southern District of New York, that bear heavily on this case. After New GM’s disclosure of the ignition switch defect in early 2014, many plaintiffs filed claims against New GM—some alleging economic losses and some, including Cockram, alleging personal injuries and wrongful deaths. In April and August 2014, New GM filed motions before the Bankruptcy Court alleging that many of those claims were barred by the 2009 Sale Order through which New GM assumed many of Old GM’s assets and some of its liabilities. In April 2015, Judge Gerber ruled that many of those claims brought against New GM were in fact barred by the 2009 Sale Order. See In re Motors Liquidation Co., 529 B.R. 510 (Bankr.S.D.N.Y.2015). In particular, he determined that New GM could be held liable for certain assumed liabilities of Old GM (namely, products liability claims that were included in the Sale Agreement) and for “claims based solely on any wrongful conduct on its own part.” Id. at 583. A later Order implementing that opinion defined claims “based solely on New GM’s own, independent, post-Closing acts or conduct” as “Independent Claims.” See In re Motors Liquidation Co., 09-50026 (REG), Docket No. 13177 ¶4 (Bankr. S.D.N.Y. June 1, 2015).

The definition of “Independent Claims” reemerged as significant in November 2015, when Judge Gerber issued an opinion addressing the issues of punitive damages and “imputation.” See In re Motors Liquidation Co., 541 B.R. 104 (Bankr. S.D.N.Y.2015) (“November Decision”). In that opinion, Judge Gerber made two rulings that bear significantly on this bellwether trial. First, he determined that, as a matter of bankruptcy law, knowledge of Old GM personnel or knowledge of information contained in Old GM files could be imputed to New GM only to the extent that it could be shown, as a matter of non-bankruptcy law, that New GM actually had that knowledge (for example, through an Old GM employee who later became an employee of New GM). See id. at 108. Second, Judge Gerber ruled that claims for punitive damages could only be “based on New GM knowledge and conduct alone” because New GM did not assume liability for punitive damages under the Sale Agreement. See id. In light of Judge Gerber’s decisions, it is undisputed that there are three types of damages potentially available to Cockram in this action: (1) compensatory damages for products liability claims based on Old GM conduct, liability for which was assumed by New GM; (2) compensatory damages for “Independent Claims”—that is, claims based solely on New GM conduct; and (3) punitive damages for “Independent Claims.” Cockram pursues all three. {See TAC ¶¶421-432).1

[365]*365LEGAL STANDARDS

Summary judgment is appropriate where the admissible evidence and pleadings demonstrate “no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a); see also Johnson v. Killian, 680 F.3d 234, 236 (2d Cir.2012) (per curiam). A dispute over an issue of material fact qualifies as genuine if the “evidence is such that a reasonable jury could return a judgment for the nonmoving party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); accord Roe v. City of Waterbury, 542 F.3d 31, 35 (2d Cir.2008). The moving party bears the initial burden'of demonstrating the absence of a genuine issue of material fact. See Celotex Corp. v. Catrett, 477 U.S. 317, 325, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). “In moving for summary judgment against a party who will bear the ultimate burden of proof at trial, the movant’s burden will be satisfied if he can point to an absence of evidence to support an essential element of the non-moving party’s claim.” Goenaga v. March of Dimes Birth Defects Found., 51 F.3d 14, 18 (2d Cir.1995) (citing Celotex, 477 U.S. at 322-23, 106 S.Ct. 2548); accord PepsiCo, Inc. v. Coca-Cola Co., 315 F.3d 101, 105 (2d Cir.2002).

In ruling on a motion for summary judgment, all evidence must be viewed “in the light most favorable to the non-moving party,” Overton v. N.Y. State Div. of Military &

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re Amla Litig.
282 F. Supp. 3d 751 (S.D. Illinois, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
202 F. Supp. 3d 362, 2016 U.S. Dist. LEXIS 108405, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fleck-v-general-motors-llc-14-cv-8176-nysd-2016.