GM WANTS JUDGE HEARING ITS CASE VS FIAT CHRYSLER OUSTED

General Motors (GM) has asked a federal appeals court on Friday (Saturday, June 27, 2020 in Manila) to overturn an order that requires its CEO to meet with the head of Fiat Chrysler (FCA) by next week to try to settle a lawsuit related to corruption by union leaders, Ed White of Associated Press (AP) reported.

GM also asked the appeals court to remove US District Judge Paul Borman from the case. The firm 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.

Borman described the lawsuit as a “nuclear option” that would be a “waste of time and resources” for years if he allows the case to move forward. 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.

In a court filing, GM called Borman’s order a “profound abuse” of power. “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. “Second, the court has no business labeling a properly filed federal lawsuit assigned to the court for impartial adjudication ‘a distraction’ or a ‘nuclear option,’” GM said. Borman can’t be viewed as impartial, company lawyers said.