GM defeats appeal by class action plaintiffs in workers compensation challenge

Client(s) General Motors LLC

On April 30, 2013, the U.S. Court of Appeals for the Sixth Circuit ruled in favor of Jones Day's client, General Motors LLC ("GM"), affirming the district court's grant of summary judgment to GM in a putative class action brought by GM retirees under the federal Labor Management Relations Act and under Michigan law. The Sixth Circuit unanimously agreed that GM had lawfully amended its benefit plan to allow for coordination of the workers compensation payments and disability insurance benefits that it paid to the retirees. The court adopted GM's arguments that the applicable benefit plan had not created a "vested" right preventing such coordination of benefits; that the plan amendment was not impermissibly retroactive; and that Michigan law authorized the coordination.

Garbinski v. General Motors LLC, No. 12-1549 (6th Cir. 2013)