GM's 'Mistaken' Contract Citation Did Not Admit Wrongful Death Liability, 2nd Circuit Rules
The plaintiff argued that the "distinct and discreet" language could include his wrongful death claim and that GM was bound by its supposed admission throughout the proceedings.
May 07, 2020 at 07:06 PM
3 minute read
A Second Circuit panel ruled Wednesday that General Motors did not admit liability for a wrongful death claim stemming from its faulty ignition switch crisis when it accidentally cited language from a decade-old contract dating back to its 2009 bankruptcy.
A three-judge panel of the U.S. Court of Appeals for the Second Circuit said GM's "mistaken" citation from the outdated sales agreement did not qualify as a binding concession, and joined other circuit courts in holding that such a "judicial admission" would require a formal statement that is "intentional, clear and unambiguous."
"Bearing in mind this rule, we cannot say that New GM's mistaken citation of language from a non-operative agreement … constitutes a judicial admission that New GM in fact assumed the liabilities set forth in language found in the non-operative agreement," the panel wrote in an 11-page per curiam opinion.
Second Circuit Judges Dennis Jacobs, Robert D. Sack and Peter W. Hall ll participated in the decision.
The ruling upheld an earlier decision by a Manhattan federal judge who ruled GM had not admitted liability for wrongful death claims when it referenced, twice in separate court filings, language from a superseded agreement, which stated that the restructured company would be responsible for "accidents, incidents or other distinct and discreet occurrences" occurring after June 2009.
Benjamin Pillars, whose wife died after her car crashed allegedly due to her car's faulty ignition switch, had argued that the "distinct and discreet" language could include his wrongful death claim and that GM was bound by its supposed admission throughout the proceedings.
GM was represented by Richard Godfrey and Andrew B. Bloomer of Kirkland & Ellis in Chicago, as well as Erin Murphy and C. Harker Rhodes from the firm's Washington, D.C., office. The ruling also listed Arthur Steinberg, David Fine and Scott Davidson of King & Spalding as counsel for the company.
Pillars was represented by Russell C. Babcock, an appellate lawyer from Saginaw, Michigan.
The Second Circuit explained that, in order to qualify as a judicial admission, the statement had to be one of fact, and not a legal conclusion. But "inherent inconsistencies" between the outdated agreement and the new contract showed that GM's mistake did not meet its new standard.
"Because New GM's erroneous citation of language from a non-operative agreement was not an intentional, clear, and unambiguous statement of fact, we hold that it did not constitute a judicial admission," the court said.
In a footnote, the judges also expressed "serious reservations about calling a description of liabilities an assumed 'fact' rather than a legal conclusion," but said it was not required to reach that issue in its ruling.
An attorney for GM did not immediately respond Wednesday to an email seeking comment on the decision. Pillars attorney could not be reached for comment.
The case was captioned Pillars v. General Motors.
Read More:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllNew York Sues Charter Bus Operators for $708 Million Over Migrant Transport
Ex-Nikola CEO Sentenced to 4 Years for Securities and Wire Fraud in SDNY
Decision of the Day: Defense Lawyer Disqualified Under Witness Advocate Rule as Integral, Prejudicial Witness
Law Firms Mentioned
Trending Stories
- 1Judicial Ethics Opinion 24-60
- 2California Implements New Law Banning Medical Debt From Credit Reports
- 3Trump Picks Personal Criminal Defense Lawyers For Solicitor General, Deputy Attorney General
- 4Climate Groups Demonstrate Outside A&O Shearman and Akin Offices
- 5Republican Who Might Become FTC's Next Chair Blasts Democratic Commissioners' 'All Mergers Are Bad' Mindset
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250