Originally Posted by Bigcat
I thought there were laws in place so people can not sue the government(or at least made it very hard to do so).
Now I hear people will still be able to "make claims" against GM even though they went through BK.
Can we assume this is only because it's taxpayer money? Once again taxpayers will be getting screwed.http://www.nytimes.com/2009/06/28/bu...28gm.html?_r=1
You can not sue the federal government unless it waives its right of Sovreign Immunity. In some instances they have waived it but the interpretation is very strict. You are limited to suing for individual cause and only when standing has been upheld. For instance, if you get hit by a falling military jet, you can sue.
An individual can not sue for redress of a federal statute. For instance, when Social Security can not meet its obligations you will not be able to sue for recompense of what you paid in.
In the case of GM there may be a test of existing law because we have never had a fascistic corporation before. This is totally new ground with no legal history on its own. The federal givernment is Constitutionally barred from ownership of a for profit entity, yet they have defacto ownership of GM, GS, AIG etc.. And these entities still operate on a for profit basis. It will be interesting to see how the feds try to spin there actions in a court defense.