A federal bankruptcy judge won't dismiss a lawsuit filed by the United Auto Workers against General Motors Co. seeking $450 million in payments to a retiree health care trust fund. In April 2010, the UAW sued GM in Detroit, contending that the Detroit automaker was obligated to make a $450 million contribution to a health care trust fund under a June 2007 agreement.
GM asked U.S. Bankruptcy Judge Robert Gerber to hear the case. He declined to intervene — and instead ruled the U.S. District Court in Detroit can hear the lawsuit.
"Since so much has already been accomplished in helping new GM and the UAW get back to business as usual, I think it's better for the New York bankruptcy court to minimize its role in New GM affairs, and to act only with respect to matters where the New York Bankruptcy Court has a significant interest," Gerber said in a 28-page opinion released last week.
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