GM begins talks on death claims in switch cases

General Motors' compensation expert began discussions Friday with five lawyers representing people with claims of deaths or injuries resulting from faulty ignition switches on 2.6 million cars that GM recalled worldwide earlier this year.

Kenneth Feinberg, a compensation expert who GM hired in April, met Friday in Washington, D.C., with Texas lawyer Robert Hilliard and four others.

"I was pleased to meet with Mr. Hilliard and the others," he said. "I would do the same for any other lawyer who called me" with a relevant case.

Feinberg and Hilliard both cast the meeting as preliminary general discussion.

Hilliard, the headliner pursuing cases against GM, represents 53 families who say they lost loved ones due to the GM defect, as well as 273 injury victims, 63 of whom suffered what Hilliard says are "catastrophic injuries."

Feinberg is expected to have a number of meetings with people who have GM claims before proposing any settlements, possibly as soon as the end of the month. He's a veteran compensation expert, having handled high-profile cases including the BP oil spill and the Boston Marathon bombing.

GM spokesman Greg Martin said, "It would be inappropriate to comment while Mr. Feinberg's work is in progress."

No financial details were discussed Friday, but Hilliard says he wants GM to compensate all his clients, regardless of whether their accidents took place before or after GM's Chapter 11 bankruptcy reorganization in July 2009. In fact, he said he understood from the discussion that GM was at least considering that.

That would be a radical move for GM. As part of the 2009 reorganization, GM legally was excused from liability for most "old GM" issues. The automaker is seeking a court decision affirming that it has no liability for cases involving diminished value of the 2003-2011 recalled vehicles.

But GM documents show it knew of the switch problem since 2001, and it apparently was covered up by some within the company. If GM deliberately conc! ealed the switch fault as it went through the Chapter 11 process, it almost surely would lose the liability protection.

"You can't use the shield if there was fraud involved," says Carl Tobias, professor at the University of Richmond law school.

GM's Martin repeated the company's stand: "General Motors has taken responsibility for its actions and will keep doing so. GM has also acknowledged that it has civic and legal obligations relating to injuries that may relate to recalled vehicles, and it has retained Kenneth Feinberg to advise the company what options may be available to deal with those obligations."

When it announced the recall in February, GM acknowledged 12 deaths and 31 accidents in the U.S., and since has added one fatal crash in Canada to the totals. Most happened before the 2009 reorganization.

Nonetheless, Hilliard, says, an "investigation has confirmed that each accident was caused by the ignition defect in the GM vehicle."

Tobias said if the matter gets as far as settlement amounts, the cases will have to be considered one by one: "There are going to be questions about whether you can trace this accident to the faulty switch, and was there bad driving involved."

The specific problem for which GM recalled the Chevrolet Cobalt, Saturn Ion and similar vehicles is that the ignition switch can unexpectedly move out of the run position, shutting off the engine, which kills power assist to the steering and brakes and can disable the front airbags.

GM dealers currently are replacing the switches for free, and GM is paying for rental or loaner cars for owners of the recalled models who don't want to drive them until the repairs are done.