Appeals court delays meeting between GM, Fiat Chrysler CEOs

DETROIT (AP) — Three federal appeals judges have delayed a court-ordered meeting between the CEOs of General Motors and Fiat Chrysler to try to settle a lawsuit over corruption by union leaders.

U.S. District Court Judge Paul Borman last week ordered GM CEO Mary Barra and FCA CEO Mike Manley to hold the meeting before July 1. But GM on Friday asked the federal appeals court in Cincinnati to overturn the order and remove Borman from the case.

In an order issued Monday, three appellate judges delayed Borman's order to provide time to consider legal points raised by GM.

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.

In his order last week 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 Barra and 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. Over the weekend he modified the order to allow lawyers to attend the meeting.

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...