Last week in one of the most delicious court orders I’ve read lately, a federal judge told the CEOs of GM and Fiat Chrysler to meet personally to settle GM lawsuit against FCA, partly because everything was a “waste of time”. GM then went over the judge’s head. Today, the judge beautifully answered the point.
To recap: GM sued FCA in November Because GM says it was at a disadvantage during contract negotiations with the UAW, making GM’s labor costs more expensive than FCA’s due to corrupt negotiation. The lawsuit is GM’s attempt to extract some money from FCA, while FCA has maintained that it has no merit.
The case continued as usual, but a hearing last week was apparently so poor that it inspired federal district judge Paul Borman to order GM CEO Mary Barra and FCA CEO Mike Manley to meet to find a resolution. Borman later modified that order to say that Barra and Manley could have an attorney present during the meeting, but that was not enough for GM, who had meanwhile complained to the United States Court of Appeals for the Sixth Circuit.
GM said Borman’s order was “deep abuse” and “unprecedented”, and did not mean “unprecedented levels of cold.” GM also said it wanted Borman out of the case. Today, Borman fired his last salvo:
ORDER RESPONDING TO THE CLAIMANT OF GENERAL LETTER OF JUNE 27, 2020 TO THE UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT, IN
CASE NUMBER 20-1616
At the Zoom noon webinar, July 1, 2020, the Court will address a single question to GM CEO Mary Barra and FCA CEO Michael Manley; “Have you solved this case?” “Yes or no.” No further elaboration or statement will be requested or permitted from CEO Mary Barra or CEO Michael Manley. It’s so tidy
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The stage was set, then, for what would perhaps be one of the shortest and funniest court proceedings in history on Wednesday, in all of Zoom. That was at least until the appeals court heavy today after Borman did, leaving Borman’s first order as the appeals court considers things. The appeals court also invited Borman to respond more, and I sincerely hope he does.
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