ContractsProf Blog

Editor: Myanna Dellinger
University of South Dakota School of Law

Friday, April 17, 2009

Michigan jury gives Chrysler win in breach of K suit

A It's not all doom and gloom for Chrysler.  Sure, its banks are balking at its reorganization plan.  Its loyal longtime customers are fleeing to foreign models.  Ottawa is saying it might let the company's Canadian operations die.  Fiat is suggesting it might walk away from the shotgun marriage that the U.S. administration has proposed.  threatening to walk away from a potential merger.  Even the guy the government appointed to supervise the company's turnaround is now being investigated for illegal kickbacks involving a New York pension fund.

But there's a piece of good news.  A jury in Oakland County, Michigan, has awarded the carmaker $47 million in a breach of contract claim against a supplier who allegedly breached its warranties.  Chrysler had to recall 400,000 cars due to defects in the underbody.  Apparently all the recall costs were recovered as consequential damages.

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