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Court Upholds Dismissal of $450 Million Retiree Claim Against GM
A federal appeals court has upheld a lower court dismissal of a lawsuit claiming General Motors Co. owed $450 million in medical benefits to workers at Delphi Automotive plc.
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A federal appeals court has upheld a lower court dismissal of a lawsuit claiming General Motors Co. owed $450 million in medical benefits to workers at Delphi Automotive plc.
The payment was part of a 2007 contract involving GM, Delphi and the United Auto Workers union. But the obligation was not part of the medical benefits contract signed between the UAW and "new" GM when the carmaker emerged from Chapter 11 bankruptcy restructuring in 2009.
A three-judge panel of the 6th Circuit Court of Appeals in Cincinnati agreed with a lower court that language in the 2009 contract specifically absolves new GM of responsibility for the pre-bankruptcy deal.
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