Chrysler Wrongful Death Lawsuit Approved in Bankruptcy Court

A $24 million wrongful death payment against Old Carco LLC which holds the assets of the former Chrysler LLC was approved Thursday in bankruptcy court.

The court authorized the settlement in the case of the death of Richard Mraz who was hit and killed by a Dodge Dakota pickup with a transmission defect, according to court documents. Mraz was 38 and working at the Port of Los Angeles when the accident occurred in 2004.

The Mraz estate was awarded a $55.4 million verdict in Los Angeles in 2007 and Chrysler posted an appeal bond through Safeco Insurance Company of America that guaranteed the automaker's ability to pay.

But Chrysler appealed the verdict and payment became questionable after Chrysler filed for bankruptcy April 30 and shed many of its liabilities.

The bankruptcy court, which still oversees the assets of Old Carco, allowed the Mraz estate and Safeco to negotiate directly, which led to the settlement.

The $24 million is to be wired from Safeco Oct. 5, under the court order, or interest will accrue.

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