GM wants judge removed in legal fight with Fiat Chrysler

PTI | Jun 27, 2020, 12:27 PM IST

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.

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Bone of contention

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

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Court angle

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

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GM stand on court order

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

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Fiat Chrysler stand on court order

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

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Fiat Chrysler statement on court order

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

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What Federal agents are rooting for

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