ILNews

District Court upholds jury award against GM

Jennifer Nelson
January 1, 2008
Keywords
Back to TopCommentsE-mailPrintBookmark and Share
A U.S. District judge chastised General Motors for the way the company treated its salaried employees who gave up being under union protection and later wanted to rejoin the union as hourly workers. In an opinion released Aug. 15, Judge David Hamilton of the U.S. District Court, Southern District of Indiana, Indianapolis Division, upheld a $3.1 jury award against GM for promissory estoppel claims, finding the plaintiffs had provided sufficient evidence to prove their Sixth Amendment claim against the company.

Judge Hamilton ruled on GM's motions for judgment as a matter of law and for a new trial in Harold Burton, et al. v. General Motors Corporation, No. 1:95-CV-1054-DFH-TAB, and denied both motions. The District Court also denied GM's motion to strike the plaintiffs' demand for a jury trial.

The plaintiffs were five employees at the Allison Engine Division of GM who originally worked in hourly, union-protected positions and were recruited by GM to take jobs as first-line supervisors. As supervisors, they were no longer organized under the union and were told by GM they could return to the hourly, unionized positions if they desired. However, once GM decided to sell Allison Engine, it froze transfers back to the union positions without telling supervisors.

After more than 10 years of litigation to decide whether state or federal laws applied to the plaintiffs' claims, their Sixth Amendment complaint for promissory estoppel and fraud was allowed to proceed to a jury trial in 2008. The jury found the plaintiffs proved their promissory estoppel claims, but not the fraud claims, and awarded the plaintiffs more than $3 million.

GM moved for a judgment as a matter of law, arguing multiple errors were made with regard to the plaintiffs' promissory estoppel claims and the jury award of damages was improper. GM also sought a new trial on those grounds.

Judge Hamilton denied GM's motions, finding the plaintiffs provided ample evidence to show GM planned to sell Allison Engine and deceptively prevented the plaintiffs from returning to their hourly positions before the sale.

"Plaintiffs' evidence was powerful and compelling. General Motors' defenses were weak attempts to evade responsibility for the promises it had made to some of its best and most important employees to persuade them to give up the security and benefits they had had under the union's protection," wrote Judge Hamilton. "To the extent the company has a conscience, General Motors and its management should be ashamed of the way they treated these employees."
ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Diocese of Fort Wayne-South Bend in December, but U.S. District Judge Robert Miller later reduced that to about $540,000 to put the damages for suffering under the statutory cap of $300,000.

  2. I was trying to remember, how did marriage get gay in Kentucky, did the people vote for it? Ah no, of course not. It was imposed by judicial fiat. The voted-for official actually represents the will of the majority in the face of an unelected federal judiciary. But democracy only is just a slogan for the powerful, they trot it out when they want and call it bigotry etc when they don't.

  3. Ah yes... Echoes of 1963 as a ghostly George Wallace makes his stand at the Schoolhouse door. We now know about the stand of personal belief over service to all constituents at the Carter County Clerk door. The results are the same, bigotry unable to follow the directions of the courts and the courts win. Interesting to watch the personal belief take a back seat rather than resign from a perception of local power to make the statement.

  4. An oath of office, does it override the conscience? That is the defense of overall soldier who violates higher laws, isnt it? "I was just following orders" and "I swore an oath of loyalty to der Fuhrer" etc. So this is an interesting case of swearing a false oath and then knowing that it was wrong and doing the right thing. Maybe they should chop her head off too like the "king's good servant-- but God's first" like St Thomas More. ...... We wont hold our breath waiting for the aclu or other "civil liberterians" to come to her defense since they are all arrayed on the gay side, to a man or should I say to a man and womyn?

  5. Perhaps we should also convene a panel of independent anthropological experts to study the issues surrounding this little-known branch of human sacrifice?

ADVERTISEMENT