The Detroit News (5/28, Shepardson) reports, “Chrysler LLC said today it would honor lemon law claims from existing owners.” The company “will agree to ‘recognize, honor and pay liabilities under lemon laws for additional repairs, refund or replacement of a defective vehicle,’ the company said in a legal filing today.'” The automaker “had already agreed to honor existing warranties.” However, “it is still in discussions with Michigan, Ohio and Illinois over objections filed about whether Chrysler would abandon its workers’ compensation claims. Chrysler has said it will comply with state law.”
Chrysler bankruptcy stalls couple’s case. The New Haven Register (5/26, Kaempffer) reported, “Joseph and Jeanne Polio were hoping for a measure of justice and the security to ensure that Jeanne, who is paralyzed from the chest down from a 2005 rollover crash, can live out her days at home.” However, “they are now are among an ocean of unsecured creditors and uncertainty in the massive Chrysler bankruptcy case,” alongside “corporations and other litigants with injury or lemon-law claims. The status also leaves them among the last to get paid from whatever is left of Chrysler assets.”