H.R. 5331: Auto Bailout Accident Victims Recovery Act of 2025

This bill, titled the Auto Bailout Accident Victims Recovery Act of 2025, aims to address certain legal claims related to the General Motors (GM) bailout. Here is a summary of the key provisions of the bill:

Waiver of Statute of Limitations

The bill proposes to waive the statute of limitations for specific civil actions against the government that are related to the General Motors bailout and were filed on or before July 9, 2015. This means that individuals or groups who filed claims based on this issue can proceed, even if the usual time limits for filing lawsuits have expired.

Compensation for Eligible Claimants

Under the bill:

• The U.S. government is required to pay "just compensation" to eligible claimants. This compensation is intended to resolve claims arising from allegations of a violation of the takings clause of the Fifth Amendment to the Constitution.
• The payments will be consistent with federal standards, specified in section 1304 of title 31, United States Code.

Settlement Agreement Submission

If a settlement agreement regarding an eligible complaint has not been submitted to the court within 60 days of the bill's enactment, the Attorney General must report to Congress. This report will outline the reasons for any delays in reaching a settlement.

Definitions of Key Terms

The bill provides specific definitions for several terms:

• Eligible Claim: Refers to a claim made in an eligible complaint on behalf of qualifying individuals.
• Eligible Claimant: A person who is categorized as a plaintiff or class member and has previously filed a proof of claim in GM's bankruptcy, particularly linked to deaths or injuries due to vehicle defects.
• Eligible Complaint: Refers to a specific lawsuit filed in 2015 regarding violations connected to the acquisition of GM's assets.
• Just Compensation: This is defined as a lump-sum payment equating to 2.5 times the allowed amount from the claims register in the bankruptcy case, plus interest and reasonable legal fees.

Calculation of Just Compensation

The compensation for eligible claimants would include:

• 2.5 times the allowed amount from the bankruptcy claims register (as of June 3, 2021).
• Interest on this amount from the date of the GM acquisition (July 10, 2009) to the date of settlement, calculated at a rate of 3.5% per annum, compounded quarterly.
• Court-approved attorney's fees and costs, without any offsets.

General Purpose

The overall aim of the Auto Bailout Accident Victims Recovery Act of 2025 is to ensure that individuals who allege they were affected by defects in GM vehicles and have claims related to the government's actions during the bailout can pursue compensation. The bill seeks to provide clarity on the legal proceedings and expedite the compensation process for these individuals.

Relevant Companies

• GM - General Motors Corporation may be indirectly impacted as the bill pertains to claims involving court actions and settlements related to the company's past financial activities and vehicle safety issues.