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Liability Risk and Insurance

Automakers fail in federal court move

Leading motor manufacturers General Motors, Ford and DaimlerChrysler, facing thousands of asbestos-related brake suits, have failed in their move for consolidation of all claims for consideration in federal court. Had they been successful this would have opened the way for further moves to bundle them in to the Chapter 11 bankruptcy proceedings of Federal-Mogul Corp. The Third Circuit Court of Appeals in Philadelphia ruled that it did not have jurisdiction over the personal injury claims, sending them back to the states of origin for determination.

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