Judge in U.S UPS/ASTAR legal fight steps down

The judge overseeing a year-long legal battle between a once German-owned US cargo airline and the delivery giants FedEx and United Parcel Service has removed himself from the case after being accused of xenophobia.

Miami-based Astar Air Cargo, previously called DHL Airways, had charged in a motion that Administrative Law Judge Ronnie Yoder should step down because he had wildly exceeded his mandate and openly favoured FedEx and UPS in discovery and other matters.

In the document, Astar sought to disqualify the judge, accusing him of “deep-seated personal bias” and “xenophobia”.

Judge Yoder lambasted Astar’s attorneys at a preliminary hearing, repeatedly calling the company’s accusations “totally baseless and false”, but said he had decided to turn the case over to fellow judge Burton Kolko because the allegations had become a distraction.

UPS and FedEx said that Deutsche Post, Germany’s postal service, circumvented federal law preventing foreign companies from controlling a US airline through a number of interlocking relationships and agreements between its parcel subsidiary, DHL Worldwide, and Astar.

In July US investors led by John Dasburg, Astar’s chief executive, completed a buy-out, putting the cargo carrier under the firm control of US shareholders.

The motion submitted by Astar’s lawyers cited a speech in which the judge referred to the September 11 attacks of 2001 as justification for foreign ownership restrictions on US airlines.

Two weeks ago, the Department of Transport told the judge solely to examine the airline’s current ownership, a move widely seen by obser vers as a major victory for DP, DHL and Astar. Yet in an order last Friday, Judge Yoder ruled that UPS and FedEx would still be able to present their “substantial evidentiary proffers” about past relationships.

Friday’s order, which seems to ignore the new guidelines set by the Transportation Department, triggered the motion for the Judge’s removal.