In Conflict Resolution, Fairness Concerns Loom Large
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On June 30, compensation expert Kenneth R. Feinberg unveiled a plan to give restitution to victims of accidents related to the fatal ignition flaw in 2.6 million General Motors vehicles. The plan—designed to be as generous as other compensation plans Feinberg has overseen, including payouts to victims of the 2013 Boston Marathon bombings—is part of GM’s efforts to restore public trust and reduce the number of costly lawsuits it could face, Hilary Stout reports in the New York Times. GM had faced heavy criticism for failing to disclose the defect for more than a decade.
The plan guarantees at least $1 million for families of those who died in accidents caused by the ignition problem. A calculation of the deceased’s lifetime earnings plus $300,000 for a spouse and for each dependent will be added to the $1 million payout. People who received life-altering catastrophic injuries as a result of the ignition defect could earn more, and those who received minor injuries can also be compensated for medical fees.
“General Motors basically has said whatever it costs to pay all eligible claims, they will pay it,” said Feinberg.