Last week, U.S. District Judge Paul Borman ordered General Motors CEO Mary Barra to meet with FCA CEO Mike Manley to try and resolve the legal dispute between the two companies and report back to him by July 1st. Borman cited the current economic and political situation in his reasoning for ordering the two companies to reach an agreement in the matter, which began after GM filed a RICO lawsuit against FCA late last year, but GM has now asked a federal appeals court to remove Judge Borman from the case.
GM sued FCA last year alleging the company bribed top UAW officials in order to get a better deal from the labor union during previous collective bargaining processes. The automaker also claims FCA did this with the specific intent of weakening GM’s business in order to force it to enter a merger with the company. Former FCA CEO Sergio Marchionne, who died in 2018 following surgery complications, approached Barra about entering a merger with FCA back in 2015.
Former FCA CEO Sergio Marchionne
GM’s legal team hit a roadblock last week when Judge Borman ordered GM CEO Mary Barra to meet with FCA CEO Mike Manley to come to an agreement over the dispute, calling it a “waste of time and resources,” and saying such a drastic legal measure was a “nuclear option,” against FCA. The automaker wasn’t happy with that ruling, however, as it has now asked a federal appeals court to remove Borman from the case and overturn the order for the two automaker’s CEOs to reach an agreement.
“The court possesses no authority to order the CEOs of General Motors 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 also says the FBI’s ongoing corruption investigation into FCA and the UAW, which has already seen several individuals charged with conspiracy-related crimes, is evidence that the claims made in its lawsuit are valid.
“We filed a lawsuit against FCA for the same reason the U.S. Department of Justice continues to investigate the company: former FCA executives admitted they conspired to use bribes to gain labor benefits, concessions and advantages,” GM’s legal team also said. “Based on the direct harm to GM these actions caused, we believe FCA must be held accountable. Not pursuing justice rewards wrongdoers at the expense of honest, hard-working people.”
FCA, meanwhile, says it is ready to comply with Judge Borman’s court order and remains adamant that the claims made in GM’s suit are “groundless.” The federal appeals court has yet to respond to GM’s request.
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Comments
“waste of time and resources,”
Quite a statement that seems to hit the nail on the head. It wont accomplish anything but calls out GM.
Quite a turn of events since GM said on Tuesday that they’re looking forward to meeting to resolve the issue then on Friday they appeal the judge that is handling the case. Is anyone at GM’s executive-level on the same page? Bottom line GM does not have a case and this was a way for the judge to allow GM to save face Judge Borman is a very respected jurist.
This is being run by lawyers not gm executives. Do you think production and marketing people are in meetings coming up with legal strategies?
The appeals court already issued a Stay for the order to meet.
Curious why you think he is respected. Any judge who makes a ruling based on current economic issues and race problems is a fool.
Of course the appeals court issued a stay. This appeal was made late in the afternoon on Friday, the court had no time to review it.
Regarding lawyers, of course they love this. They are probably extracting $1,000 hour plus from each of the companies.
If the judge thinks he has better things to do then he’s not fit to sit in that chair and should be removed.
Would you feel the same way if your surgeon muttered those words while you were laying on his operating table?
We are not talking about a surgeon. We are talking about a frivolous lawsuit that will cost both companies hundreds of millions of dollars in legal costs and potentially decades of litigation clogging up the courts.
This is a valid lawsuit that already has sufficient proof to continue. The judge massively overreached. He does not have authority to give the order he did. Judges hate to discipline their own, but his order talking about the times we live in was absurd, and he will probably be pulled from the case.
No idea what a surgeon has to do with this lawsuit, but odds are very high GM has what it needs to prove the allegation. UAW was/is corrupt and worked with FCA very closely to bribe the right people.
The point of the surgeon was would you want your’s to say “the hell with it, it’s (you) not worth the time” when your laying their staring up at the big bucket in the sky?
“frivolous”?, “cost ̶b̶o̶t̶h̶ ̶c̶o̶m̶p̶a̶n̶i̶e̶s̶ (GM) hundreds of millions of dollars”. FCA was to ̶M̶A̶K̶E̶ save millions of dollars while trying to swindle a merger. Take a LOOK around, there is corruption everywhere, especially in the UAW apparently.
Let me guess, you think Brady earned all them rings fare and square, or that we need a 51st state, 😳,, ooh no,,, let’s not get into politics, there’s no corruption their.
Where’s my rose colored glasses?
So your opinion is there are illegal activities in everything? That being said, nothing should be done when there is proof of said illegal activities?
You don’t need glasses you are already blind.
“So your opinion is there are illegal activities in everything?”
Nowhere in my post did I say illegal, who’s the blind one?
There is corruption in just about everything. From the government, federal, state, county and city. From large corporations all the way down to the local donut shop on the corner that just pops open the register to get your change without a transaction record. The nepotist contractor that cheats all their other employees while they overpays the often worthless family members (how many of those do you think there are?). The business owner who writes off his Vegas, golf or boating trip as a “business trip 😉”.
There is even corruption in religion and the residential homeowner associations (HOA’s) across america.
It’s called “politics”, we all know it’s there and you know it’s there and you are (again) the blind one if you believe otherwise, or is it denial?
You stated below that “The government more than likely has the damning emails between uaw and fca proving collusion”.
WikiDiff describes collusion as, “A secret agreement for an illegal purpose; conspiracy.”
An “illegal” purpose (…oops, I used the “I” word), is a conspiracy not “illegal”😳, enough for you to consider it corruption?
My point was the judge should be BOOTED, can we agree on that?
Bottom line, even if there was the alleged “bribery”, GM would have a hard time proving damages. They were making record profits during 2015 on. And of course, nobody was forcing GM to accept the UAW’s best and final offer in 2011 or 2015. The so called “pattern bargaining” always had variations between the companies.
Profits made are irrelevant. If the FCA worked with UAW to impose terms bad to GM specifically is the question. FCA is trying very hard to prevent discovery. The government more than likely has the damning emails between uaw and fca proving collusion, and gm was tipped off. Once emails are in play easy to prove the rico violation.
Not sure why I reply to tigger. Like talking to a child.
Then don’t………
Have to say this is another get rich scheme by lawyers. The guilty parties were prosecuted. This frivolous case will cost the stock holders on both sides with no benefit to either side. I have to side with the judge. We don’t need the court docket jammed up for 10 to 20 years with frivolous briefs from lawyers milking corporate funds.