GM wants judge removed in legal fight with Fiat Chrysler
General Motors (GM) asked a federal appeals court Friday to overturn an order that requires its CEO to meet with the head of Fiat Chrysler by next week to try to settle a lawsuit related to corruption by union leaders. GM also asked the appeals court to remove US District Judge Paul Borman from the case.
Bone of contention
GM is suing crosstown rival FCA alleging that it got an advantage by paying off union leaders to reduce labor costs during contract talks. FCA's former labor chief, Al Iacobelli, is in prison, although the company denies that it directed any prohibited payments. Photo: Reuters
Court angle
The judge ordered GM CEO Mary Barra and Fiat Chrysler CEO Mike Manley to sit down without lawyers by July 1 and reach a 'sensible resolution of this huge legal distraction.' Borman wants an update from them on a public video conference that same day. Photo: Reuters
GM stand on court order
"The court possesses no authority to order the CEOs of GM and FCA to engage in settlement discussions, reach a resolution and then appear alone at a pretrial conference eight days later, without counsel," GM's attorneys said. Photo: Reuters
Fiat Chrysler stand on court order
The judge declined to comment. In a statement Friday, Fiat Chrysler said it stands ready to comply with Borman's order. The Italian-American automaker called GM's lawsuit meritless and said it would not distract FCA from its business. Photo: Reuters
Fiat Chrysler statement on court order
"FCA will continue to defend itself vigorously and pursue all available remedies in response to GM's groundless lawsuit," the statement said. Photo: Reuters
What Federal agents are rooting for
Federal agents have been rooting out corruption in the senior ranks of the United Auto Workers. The first wave of convictions in 2017 involved key FCA employees who used money from a jointly run training center to reward union officials. Photo: Reuters