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Access over workers' compensation decisions, including En Banc, Significant Panel Decisions, and writ-denied cases.

Case No. MISSING
Regular Panel Decision

In Re American Plumbing & Mechanical, Inc.

Gerald Riggs and Rick Jepson, former senior executives of AMPAM Riggs, an operating subsidiary of American Plumbing & Mechanical, Inc. (a Chapter 11 debtor), applied for payment of administrative expenses claims, specifically year-end bonuses based on exceeding EBITDA targets. They argued entitlement under a pre-petition incentive plan and that the payments constituted ordinary course business expenses, which a prior court order allegedly authorized. The Plan Agent and the Official Creditors' Committee objected, contending that Riggs and Jepson were ineligible as they had resigned in April 2004 before bonus payments, and that AMPAM Riggs had not actually met its 2003 EBITDA target once certain late-reported insurance claims were properly factored in. The court found that after adjusting the 2003 EBITDA for these claims, the target was not met, meaning no 15% bonus was owed. Additionally, the court ruled that even if the bonuses were earned, they did not qualify as administrative expenses under Bankruptcy Code section 503(b)(1)(A) because they were not attributable to services rendered post-petition and did not confer a discernible benefit to the estate, especially since the applicants had voluntarily resigned. The application for payment of administrative expense claims was therefore denied.

BankruptcyAdministrative ClaimIncentive Bonus PlanEBITDA AdjustmentPost-Petition ServicesChapter 11 ReorganizationFiduciary DutyCreditors' CommitteeVoluntary ResignationBenefit to Estate
References
27
Case No. MISSING
Regular Panel Decision

In Re Golden Distributors, Ltd.

The debtor, Golden Distributors, Ltd., in a Chapter 11 case, moved to classify employee benefit claims, while several unions cross-moved for full administrative expense treatment. The court addressed the priority of sick leave, personal holidays, vacation, and severance pay for both union and non-union former employees. It concluded that most of these claims, including all severance pay and union vacation pay, qualify as administrative expenses or similar high-priority claims. However, all such employee claims were deemed subordinate to the super-priority secured liens held by the post-petition lenders.

BankruptcyChapter 11Administrative ExpensesEmployee BenefitsSeverance PayVacation PayCollective Bargaining AgreementSuper-priority LiensDebtor in PossessionUnions
References
17
Case No. Consolidated Chapter 13 Cases (e.g., 91-20422 to 97-36152)
Regular Panel Decision

In Re Phillips

This Memorandum Opinion and Order addresses objections by chapter 13 trustees to the postpetition claims for attorney's fees and expenses filed by William A. Cohn, an attorney representing numerous chapter 13 debtors. Mr. Cohn had routinely filed these claims under 11 U.S.C. § 1305(a)(2), arguing it served as an alternative to the § 330 procedures for professional compensation. The Court found that § 1305(a)(2) is intended for exigent circumstances where prior trustee approval is impracticable, not for routine legal work, and that Mr. Cohn failed to meet its conditions. It emphasized that § 330, which requires notice, a hearing, and detailed documentation, is the appropriate procedural vehicle for approving attorney's fees to ensure reasonableness and benefit to the debtor. Consequently, the Court disallowed all of Mr. Cohn's postpetition claims filed under § 1305(a)(2), vacated prior administrative orders that had mistakenly allowed these claims, and ordered Mr. Cohn to either file proper § 330(a)(4)(B) applications with full time and expense documentation by July 31, 1998, or disgorge all received postconfirmation fees and expenses by August 14, 1998.

Bankruptcy LawChapter 13 ProceedingsAttorney CompensationPostpetition ClaimsFee ApplicationsDisgorgement of FeesProcedural ComplianceProfessional EthicsJudicial ReviewAdministrative Errors
References
15
Case No. MISSING
Regular Panel Decision

In Re Spectrum Information Technologies, Inc.

This bankruptcy case concerns two motions: the Debtors' request to reject John Marchione's employment agreement and Marchione's application for his severance pay claim to be treated as an administrative expense. John Marchione, former president of a debtor subsidiary, was involuntarily terminated post-petition. The Court, presided over by Chief Judge Conrad B. Duberstein in the Eastern District of New York, ruled that the employment agreement was not an executory contract at the time of the rejection motion. Citing established Second Circuit precedent, the Court held that Marchione's severance pay, despite being calculated based on length of service, accrues entirely upon post-petition termination and thus qualifies as an administrative expense entitled to priority under the Bankruptcy Code. Consequently, the Debtors' motion to reject was denied, and Marchione's claim for $75,000 was granted administrative expense priority.

BankruptcyExecutory ContractsEmployment AgreementSeverance PayAdministrative ExpensePriority ClaimRejection of ContractChapter 11Debtor-in-PossessionSecond Circuit Precedent
References
35
Case No. 14-18-00274-CV
Regular Panel Decision
Mar 17, 2020

Dr. Louis Patino, D.C. Dr. Stephen Wilson, M.D. And Dr. Gary Craighead, D.C. v. Texas Department of Insurance-Division of Workers' Compensation Commissioner Cassandra J. Brown and Dr. Donald Patrick, in Their Official and Individual Capacities State Office of Administrative Hearings, Texas Chief Administrative Law Judge Cathleen Parsley in Her Official Capacity Tommy Broyles, in His Official Capacity The State of Texas And the Attorney General of the State of Texas

Three doctors, Patino, Wilson, and Craighead, appealed the dismissal of their claims against the Texas Department of Insurance-Division of Workers’ Compensation and other state entities. The doctors were excluded from the state's workers' compensation approved doctor list between 2004 and 2007, leading to administrative penalties and a subsequent lawsuit. The trial court dismissed their claims for lack of jurisdiction, asserting immunity. The appellate court affirmed the dismissal of claims challenging final agency orders due to unexhausted administrative remedies and collateral attack immunity. However, the court reversed the dismissal of the doctors' constitutional challenges to the Workers’ Compensation Act and ultra vires claims against the Commissioner, concluding these claims were properly pleaded and not barred by sovereign immunity.

Physician ExclusionAdministrative LawJudicial ReviewSovereign ImmunityUltra Vires ClaimsConstitutional ChallengeDue Process RightsProfessional LicensingGovernment RegulationTexas Labor Code
References
24
Case No. 03-15-00285-CV
Regular Panel Decision
Jul 01, 2015

Volkswagen Group of America, Inc. And Audi of America, Inc. v. John Walker III, in His Official Capacity as Chairman of the Texas Department of Motor Vehicles Board The Honorable Michael J. O'Malley, the Honorable Penny A. Wilkov, in Their Official Capacities as Administrative Law Judges for the State Office

This case involves an appeal filed by Volkswagen Group of America, Inc. and Audi of America, Inc. (Appellants) against John Walker III, Chairman of the Texas Department of Motor Vehicles Board, and Administrative Law Judges Michael J. O'Malley and Penny A. Wilkov (Appellees). Appellants sought injunctive relief in district court to prevent Appellees from proceeding with an allegedly ultra vires remand of an administrative contested case after a Proposal for Decision (PFD) had been issued. The district court dismissed the lawsuit based on governmental immunity and failure to exhaust administrative remedies. Appellants argue that Appellees' actions, including ordering the remand and reopening evidence, exceeded their statutory authority under the Administrative Procedure Act and Texas Occupations Code, making governmental immunity inapplicable and exhaustion of remedies unnecessary.

Administrative LawUltra Vires ActsGovernmental ImmunityExhaustion of RemediesJudicial ReviewAgency AuthorityState Office of Administrative HearingsRemandContested CasesStatutory Interpretation
References
31
Case No. 15-25-00061-CV
Regular Panel Decision
Apr 02, 2025

Francisca Okonkwo, Administrative Law Judge, Texas Department of Insurance, Division of Workers' Compensation, in Her Official Capacity and Fort Bend County v. Joshua David Heiliger, Individually, and on Behalf of the Estate of Lauren Brittane Smith, and on Behalf of Death Benefits Beneficiaries Joshua David Heiliger and Emma Destiny Heiliger

Fort Bend County appeals a temporary injunction granted by a Harris County District Court, which prevents discovery of mental health records in an ongoing workers' compensation dispute. The underlying administrative case involves a claim for death benefits by Joshua Heiliger, whose spouse, Lauren Brittane Smith, was a paramedic. Heiliger asserts Smith's mental health condition and stress contributed to her death, thus placing her mental health at issue. The Division of Workers' Compensation's Administrative Law Judge (ALJ) issued a subpoena for Smith's mental health records from her psychiatrist, Dr. John Marcellus. Heiliger bypassed the administrative process by obtaining the injunction in District Court. Fort Bend County argues the District Court erred in interfering with the Division's exclusive jurisdiction and that Heiliger failed to exhaust administrative remedies or demonstrate irreparable injury, as Texas law provides a qualified privilege for mental health records with exceptions relevant to this case.

Workers' CompensationTemporary InjunctionDiscovery DisputeMental Health RecordsSubpoena EnforcementAdministrative Law JudgeExclusive JurisdictionExhaustion of Administrative RemediesQualified PrivilegePatient-Litigant Exception
References
53
Case No. MISSING
Regular Panel Decision
Apr 12, 1989

In Re Microwave Products of America, Inc.

Joseph Scallon, former president of Microwave Products of America (MPA), sought payment for post-petition salary and expenses as an administrative claim after MPA filed for bankruptcy. He claimed extensive hours and travel costs for his services as president and CEO, along with two weeks of severance pay. Presiding Judge Bernice Bouie Donald meticulously scrutinized Scallon's application due to his fiduciary role. The court allowed a salary claim of $3,000 for one week of necessary services rendered to preserve the estate. However, Scallon's $6,000 severance pay claim was reclassified as a non-priority general unsecured claim, as it was deemed a gratuitous promise rather than a bargained-for or necessary expense. Additionally, $1,861.71 in post-petition expenses was allowed as a priority claim, contingent upon the submission of proper documentation to the U.S. Trustee and payment upon plan confirmation.

Bankruptcy AdministrationAdministrative ClaimsPriority ClaimsSeverance PayPost-petition ExpensesFiduciary DutyOfficer CompensationDebtor-in-possessionEmployee ClaimsClaim Scrutiny
References
12
Case No. 2017-04-0093 / 13763-2017
Regular Panel Decision
Oct 15, 2025

JEFFREY MOLANDS, Administrator, THE ESTATE OF MARSHA MOLANDS v. ACCESS PROGRAM

Marsha Molands, a home health nurse for Access Program, suffered low-back and left-shoulder injuries in 2017. She underwent two back surgeries in 2019 and 2023. Following the second surgery, she developed a wound infection, sepsis, and related complications, leading to her death in April 2024. Her husband, Jeffrey Molands, as Administrator of her estate and sole dependent, sought death benefits, additional temporary total disability (TTD) benefits, medical expenses, and funeral expenses. The Court found that Ms. Molands’s death arose primarily out of her 2017 work injury, largely based on the medical examiner’s testimony that infections from her surgeries caused a "death spiral." Consequently, the Court granted death benefits to Mr. Molands at a rate of 50% of Ms. Molands’s average weekly wage, along with reimbursement for medical and funeral expenses. However, the Court denied Mr. Molands’s request for a lump-sum payment of future death benefits, citing statutory limitations and a lack of "exceptional circumstances." It also denied additional TTD benefits from August 2020 to July 2023, determining that Ms. Molands had reached maximum medical improvement in August 2020. Attorney's fees were awarded to Mr. Molands' counsel.

Death BenefitsWorkers' CompensationMedical CausationSpinal InjurySepsisInfectionLaminectomyFusion SurgeryMaximum Medical ImprovementTemporary Total Disability
References
9
Case No. MISSING
Regular Panel Decision

In re Phones for All, Inc.

Isaac Lasky moved the court for an administrative expense allowance under 11 U.S.C. § 503(b)(1) from the bankruptcy estate of Phones for All, Inc., a Chapter 11 debtor. Lasky's claim was for severance benefits derived from a pre-petition employment contract, after his post-petition termination without cause. Phones for All and its Official Committee of Unsecured Creditors opposed the motion, arguing the severance benefits were a pre-petition claim, not a post-petition administrative expense. The court analyzed the Bankruptcy Code, specifically §§ 503(b)(1) and 507, noting that severance pay is explicitly included for priority unsecured wage claims but not for administrative expenses. The court concluded that Lasky's severance benefits constituted a conditional pre-petition right and did not qualify as an actual, necessary cost of preserving the estate post-petition. Therefore, the court denied Lasky's motion for the allowance and payment of an administrative expense.

BankruptcyAdministrative ExpenseSeverance PayEmployment ContractPost-Petition TerminationPre-Petition Claim11 U.S.C. § 503(b)(1)11 U.S.C. § 507Creditors' CommitteeDebtor in Possession
References
18
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