Automakers reportedly have won a temporary reprieve from lawsuits filed by victims of defective air bags made by bankrupt Takata that led to the largest ever auto safety recall and at least 18 deaths.
The decision gives the supplier room to work through its bankruptcy reorganisation, Reuters reported.
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US Bankruptcy Judge Brendan Shannon in Wilmington, Delaware, granted a 90-day halt on lawsuits brought by Hawaii, New Mexico, the US Virgin Islands as well as individuals. He did not extend the shield to 48 federal cases that extend across several districts, saying the lawsuits had already advanced.
According to the report, Takata had argued for a six-month freeze on hundreds of lawsuits so management could complete a US$1.6bn sale of its viable operations, crucial to its reorganisation, and replace air bag inflators that are subject to the biggest recall in automotive history.
Shannon said he was "extremely sensitive" to the plaintiffs' cases but believed a "breathing spell" for Takata was appropriate. The stay expires on 15 November.
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Major automakers including BMW, Ford, Honda and Toyota argued in favour of the pause.
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By GlobalDataTakata and US unit TK Holdings said they faced tens of billions of dollars in liabilities when they filed for bankruptcy protection in June, including claims from automakers that used its airbags and individuals who filed class action lawsuits.
Bankruptcy automatically stayed hundreds of lawsuits against TK Holdings for wrongful death, injuries, economic loss and breach of consumer protection laws stemming from the faulty airbags, Reuters said.
In July, the company asked the court to suspend lawsuits against automakers brought by airbag victims and, last week, Takata filed separately for US bankruptcy protection, or Chapter 15, in an effort to pause US lawsuits against the parent.
The official bankruptcy committee that represents injured drivers said in court papers the injunction would have "human consequences" and prevent people from pursuing compensation, according to Reuters.
