In re Motors Liquidation Co.

534 B.R. 538, 2015 Bankr. LEXIS 2406, 2015 WL 4498006
United States Bankruptcy Court, S.D. New York·Decided July 22, 2015·No. Case No.: 09-50026 (REG) (Jointly Administered)·Published·Cited by 1 cases

Opinion

DECISION AND ORDER ON BLED-SOE PLAINTIFFS’ REARGUMENT ÁND OTHER POST-JUDGMENT MOTIONS

ROBERT E. GERBER, UNITED STATES BANKRUPTCY JUDGE:

In still another filing in his efforts to go it alone in connection with litigation arising from the announcement by General Motors LLC (“New GM”) of the defects in its ignition switches (the “Ignition Switches Controversy”), and the issuance by this Court of two opinions in connection with that controversy1 following the briefing by other counsel who ably presented plaintiffs’ arguments, Gary Peller Esq., this time on behalf of the “Bledsoe Plaintiffs,” 2 a subset of the clients he has represented (individually and as purported class representatives) in this case,3 has [541]*541filed many motions seeking post-judgment relief from this Court. He moves, with respect to the judgment this Court entered implementing the Decision (the “Judgment”) and the Decision’s Findings of Fact (the “Findings”):

(a) to amend the Findings under Fed. R.Bankr.P. 7052;
(b) to alter or amend the Judgment, under Fed.R.Bankr.P. 9023 (and, presumably, Fed.R.Civ.P.59(e));
(c) for relief from the Judgment, under Fed.R.Bankr.P. 9024; and
(d) for reargument, under S.D.N.Y. Local Bankruptcy Rule 9023-1.

The motions are denied.

Facts

Familiarity with facts set forth in the Decision and the Form of Judgment Decision is presumed. The Court limits its discussion of the facts to those necessary to address Peller’s post-Judgment motions, and then only in combined factual and legal discussion of all of his motions.

Discussion

1. Motions to Amend Findings

Peller first moves, pursuant to Fed. R.Civ.P. 52(b) (as made applicable to adversary proceedings and contested matters by Fed.R.Bankr.P. 7052 and 9014), for amendments in the Court’s Findings. But he identifies no fact that the Court confused or otherwise got wrong, nor any fact that belonged in the Findings but was not included.

Rather, Peller differs with conclusions of law and on mixed questions of fact and law on matters the Court already decided. For instance, he argues that “the Court’s construction of the [Sale Order4] is untenable, and the Court should amend its findings to construe the [Sale Order] not to encompass Independent Claims.”5 As discussed below, contentions of that character are inappropriate even on a motion for reargument. They are especially inappropriate on a request for amended findings.6

[542]*542 2. Motion to Alter or Amend Judgment

Peller likewise moves for amendment of the Court’s judgment. He argues (rearranging the arguments slightly, for purposes of analysis) that the Judgment should be amended:

(1) to permit one of his clients, plaintiff Sharon Bledsoe — a pre-sale accident victim — to assert “Independent Claims”;7

(2) to exclude the Bledsoe Plaintiffs because the they did not receive the constitutionally required notice in 2009, and the “Court’s construction of the [Sale Order] was not reasonably foreseeable”; 8

(3) to exclude successor liability claims based on New GM’s unlawful operation of Old GM assets;9

(4) to “exclude the Bledsoe Plaintiffs’ Independent Claims from its reach”;10

(5) to be “limited to the construction of the [Sale Order]” and that “the Motion to Enforce should be denied in all other respects,” 11 and

(6) to deny the Motion to Enforce in its entirety.12

But these arguments, to the extent the Bledsoe Plaintiffs did not already win on them, repeat contentions the Court already rejected, are inappropriate for Rule 59 relief, or both.

The first contention is unpersuasive for both reasons. Sharon Bledsoe, as Pel-ler acknowledges,13 was the victim of a pre-sale accident. The Court is highly sympathetic to accident victims. But she is no different than the other victims of pre-closing accidents, very ably represented by Designated Counsel for the Pre-Closing Accident Plaintiffs, whose arguments the Court fully considered but ultimately rejected. She admittedly “asserts a ‘successor liability’ claim for pre-sale injury” 14 — which, for reasons explained at length in the Decision, could not be brought. And Peller’s efforts to characterize her claims as “Independent Claims” are spurious. New GM did not exist at the time of her accident (as it did not at the time of the accidents involving other Pre-Closing Accident Plaintiffs), and was not responsible for the consideration of Ms. Bledsoe’s claims, which were classic prepetition claims. Thus New GM could be liable to her only under prohibited theories of successor liability or similar theories imposing liability on New GM for Old GM acts. Peller has provided no basis for changing that conclusion now. As one who was an accident victim before the sale, Sharon Bledsoe cannot, as the Court previously ruled, assert what are in substance successor liability claims “dressed up to look like something else.”15

The second contention is unpersuasive as well. The Court ruled that all of the Ignition Switch Plaintiffs failed to receive constitutionally requisite notice in the 363 Sale and claims allowance stages of Old GM’s chapter 11 case, but that except for the ability to file claims against Old GM, and to assert Independent Claims, [543]*543Ignition Switch Plaintiffs were not prejudiced by their lack of notice — a critical element of any claim for relief. And though certain plaintiffs, or their lawyers, might not have regarded the Court’s recent rulings (in favor of New GM in some respects, and in favor of Ignition Switch Plaintiffs in others) as foreseeable, the Court’s rulings, in its view, were entirely foreseeable — at least to those who were familiar with bankruptcy law and had read the relevant cases. In any event, this contention raises no issues the Court has not considered before.

The third contention, to the extent the Court can understand it (given the inherent inconsistency between successor liability claims and those premised solely on the acquirer’s conduct), is likewise unpersuasive. The Court considered, and rejected, the argument that Plaintiffs — whoever they might be — could still bring successor liability claims.

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In re Motors Liquidation Co., 534 B.R. 538, 2015 Bankr. LEXIS 2406, 2015 WL 4498006 (N.Y. 2015).

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