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

Case No. 90-00985-B-11 through 90-00990-B-11 and 90-01984-B-11 through 90-01989-B-11
Regular Panel Decision
Aug 28, 1991

In Re Eagle Bus Manufacturing, Inc.

This case pertains to the confirmation of the Third Amended Plan of Reorganization under Chapter 11 for Greyhound Lines, Inc. and its Affiliated Debtors. The hearing was held on August 27 and 28, 1991, presided over by Bankruptcy Judge Richard S. Schmidt in the Southern District of Texas. Numerous creditors and interested parties appeared, and several objections to the plan were filed. The Court, after reviewing evidence and arguments, overruled the remaining objections and found that the plan satisfied all applicable provisions of the Bankruptcy Code. The plan outlines the restructuring of debtor operations, treatment of various claims, and the liquidation or reorganization of subsidiaries. The Court ultimately confirmed the plan, emphasizing its feasibility and good faith in seeking to maximize returns for creditors and ensure the continuation of essential public services, with a specific exception for Eagle Bus Manufacturing, Inc.

Chapter 11 ReorganizationBankruptcy ConfirmationDebtors-in-PossessionCreditor ObjectionsPlan FeasibilityGood Faith PlanSecured Claims TreatmentUnsecured Claims TreatmentPriority Tax ClaimsNLRB Claim Estimation
References
5
Case No. MISSING
Regular Panel Decision

Thielmann v. MF Global Holdings Ltd. (In re MF Global Holdings Ltd.)

This case involves motions to dismiss an amended class action complaint filed by former employees (Plaintiffs) against James W. Giddens, as SIPA Trustee for MF Global Inc., and Louis J. Freeh, as Chapter 11 Trustee for MF Global Holdings Ltd., MF Global Finance USA, Inc., and MF Global Holdings USA, Inc. The Plaintiffs allege violations of the federal WARN Act and the New York WARN Act due to employment termination without sufficient notice. The Court granted the SIPA Trustee's motion to dismiss with prejudice, finding the "liquidating fiduciary" principle applicable to MFGI as its statutory purpose was liquidation. However, the Chapter 11 Trustee's motion to dismiss was granted without prejudice and with leave to amend, as the factual record did not conclusively establish that the Chapter 11 Debtors were solely liquidating at the time of layoffs, and the complaint was otherwise deficient. Claims for vacation pay and unpaid wages were dismissed without prejudice to be handled in the claims allowance process.

WARN ActNew York WARN ActClass ActionMass LayoffsPlant ClosingsBankruptcy ProceedingsCorporate LiquidationChapter 11 ReorganizationSIPA TrusteeLiquidating Fiduciary Principle
References
26
Case No. MISSING
Regular Panel Decision

In Re Yarn Liquidation, Inc.

This memorandum addresses the priority of severance pay claims filed by fourteen former employees of SCT Yarns, Inc., a debtor in a Chapter 11 liquidation case. The court examines whether these claims qualify for third priority under 11 U.S.C. § 507(a)(3) for compensation earned within 90 days pre-petition, or first priority as administrative expenses under 11 U.S.C. § 507(a)(1) for services rendered post-petition. Adopting the majority rule, the court determines that severance pay is an administrative expense only to the extent earned by service during the bankruptcy case and a third priority claim only if earned within the 90-day pre-petition period. The court calculates the amounts entitled to first priority as administrative expenses for eleven employees who continued service post-petition and acknowledges that the pre-petition severance pay for all fourteen employees may qualify for third priority, subject to a $4,000 limit.

Bankruptcy LawChapter 11 LiquidationSeverance PayPriority ClaimsAdministrative ExpensesEmployee CompensationBankruptcy Code § 507Pre-petition ClaimsPost-petition ClaimsCreditor Priority
References
14
Case No. MISSING
Regular Panel Decision

In Re Tay-Kwamya

The Debtor, Tay-Kwamya, filed for Chapter 7 bankruptcy on October 18, 2006. The Chapter 7 Trustee requested dismissal due to the Debtor's failure to provide all required payment advices within 60 days of filing, as mandated by 11 U.S.C. § 521(a)(l)(B)(iv) and General Order M-315. The Debtor explained that two pay stubs were missing but that her other submitted pay stubs and sworn affidavit provided sufficient "other evidence of payment." The Court found that the Debtor had met the statutory requirements, considering her fixed hourly wage and the likely minimal impact of the missing documents on creditors. Consequently, the Court denied the Chapter 7 Trustee's request for dismissal.

BankruptcyChapter 7Debtor's DutiesPayment AdvicesSection 521(a)(1)(B)(iv)Automatic DismissalGeneral Order M-315Evidentiary RequirementsTrustee RequestDismissal Denied
References
11
Case No. MISSING
Regular Panel Decision

Reed v. Cooper (In Re Cooper)

This Memorandum Opinion and Order addresses a motion by The Cadle Company, an individual creditor, seeking authorization to prosecute the Chapter 7 estate's causes of action, specifically a Section 542 turnover action and state law fraud claims. The motion was opposed by the debtors, Gary R. and Junanne M. Cooper, and conditionally by the Chapter 7 Trustee. The court analyzes whether an individual creditor in a Chapter 7 case can be granted independent or derivative standing to pursue estate causes of action, distinguishing between Chapter 7 and Chapter 11 contexts. The court concludes there is no textual basis in the Bankruptcy Code for such standing in a Chapter 7 case, noting the unique role of the Chapter 7 trustee as an independent fiduciary without the conflicts of interest often present in Chapter 11. Even if such power existed, the court finds Cadle did not present a compelling argument, as the Trustee had exercised business judgment in attempting to settle the claims. The court ultimately DENIES Cadle's Standing Motion, stating that while Cadle can pursue its independent Section 727(d) action, it cannot usurp the Trustee's role.

Chapter 7 BankruptcyDerivative StandingCreditor StandingTrustee AuthorityEstate Causes of ActionAvoidance ActionsBankruptcy Code InterpretationEquitable PowersJudicial DiscretionMotion Denied
References
32
Case No. 02-11-00047-CV
Regular Panel Decision
May 03, 2012

Jim Chambers, Mary Ann Chambers, and Mark Weisbart, Chapter 7 Trustee v. First United Bank & Trust Company

Jim Chambers, Mary Ann Chambers, and Mark Weisbart, a Chapter 7 Trustee, appealed the trial court’s judgment concerning home equity loans from First United Bank & Trust Company. The appellants challenged the trial court’s directed verdict on their breach of fiduciary duty claim and the Bank’s foreclosure order, and further argued against the jury’s findings on damages and the 2004 loan payoff amount, as well as the award of attorney’s fees to the Bank. The appellate court affirmed the trial court's judgment, concluding that no informal fiduciary duty existed, the Bank properly secured an order of foreclosure, and the jury’s determinations on damages and loan payoff were supported by sufficient evidence. The court also found the award of attorney's fees to the Bank to be equitable and just under the Uniform Declaratory Judgments Act.

Home Equity LoanForeclosureBreach of Fiduciary DutyDirected VerdictAppellate ReviewLegal SufficiencyFactual SufficiencyDamagesAttorney's FeesUniform Declaratory Judgments Act
References
47
Case No. MISSING
Regular Panel Decision

In Re Motors Liquidation Co.

This bench decision addresses two contested matters within the Chapter 11 bankruptcy of Debtor Motors Liquidation Company (Old GM): a motion for class certification by 'Apartheid Claimants' and the Debtors' objection to these claims. The Apartheid Claimants, South African residents, alleged Old GM aided and abetted the apartheid system. Judge Robert E. Gerber denied class certification, finding that individual issues predominated over common ones, class action was not superior in bankruptcy, and it would unduly delay the case. Furthermore, the court disallowed the underlying claims entirely, citing the binding Second Circuit precedent in Kiobel v. Royal Dutch Petroleum Co., which established that corporations cannot be held liable under the Alien Tort Statute.

Class ActionBankruptcyAlien Tort StatuteCorporate LiabilityApartheid ClaimsClaims DisallowanceDue ProcessSubject Matter JurisdictionSecond CircuitChapter 11
References
27
Case No. 2019 NY Slip Op 07699 [176 AD3d 587]
Regular Panel Decision
Oct 24, 2019

Rivera v. 11 W. 42 Realty Invs., L.L.C.

Plaintiff Humberto Rivera was injured while riding in an elevator filled with unsecured construction materials. Defendants 11 West 42 Realty Investors, L.L.C. and Tishman Speyer Properties, L.P. successfully appealed the denial of their motion for summary judgment, with the Appellate Division finding they established prima facie that they did not cause or have notice of the unsafe condition and only exercised general supervisory control. Conversely, defendants NTT Services, LLC and Pritchard Industries, Inc.'s motion for summary judgment was denied and affirmed on appeal. They failed to demonstrate they did not create a hazard or fully displace the duty to maintain safe premises, given that their employee permitted plaintiff to enter the elevator despite company rules against it. The court also noted unresolved issues regarding contractual indemnification for 11 West 42 Realty Investors, L.L.C.

Elevator AccidentPremises LiabilitySummary Judgment MotionNegligenceContractual IndemnificationGeneral Supervisory ControlUnsecured MaterialsWorker SafetyAppellate Review
References
3
Case No. MISSING
Regular Panel Decision

Greenwald v. Axelrod (In Re Greenwald)

The Commissioner of the New York State Department of Health sought relief from an automatic stay in a Chapter 11 liquidation case to complete administrative proceedings concerning the debtor's medicaid reimbursement entitlements. The debtor, Sidney Greenwald d/b/a Maple Leaf Nursing Home, opposed the application, arguing the state's interest was pecuniary, not regulatory, thus precluding the 11 U.S.C. § 362(b)(4) exception. The court found that the Commissioner's interest was indeed pecuniary, aiming to recoup approximately $911,500 in medicaid overpayments, and thus the regulatory exception did not apply. However, considering that the debtor's nursing home was sold, no patients were at risk, and the case was a liquidation, the court granted the relief from the stay, allowing the administrative appeals to conclude, with any enforcement subject to the bankruptcy court's review of the developed administrative record.

Automatic StayBankruptcyChapter 11Medicaid ReimbursementGovernmental Regulatory PowerPecuniary InterestAdministrative ProceedingsLiquidation CaseAudit AppealsNew York State Department of Health
References
14
Case No. MISSING
Regular Panel Decision

In Re Millennium Global Emerging Credit Master Fund Ltd.

This memorandum addresses a dispute between the Liquidators of two Bermuda-based investment funds (Master Fund and Feeder Fund) and BCP Securities LLC. The Liquidators sought to compel BCP to produce documents concerning the Funds' financial affairs and assets, following the U.S. Bankruptcy Court's recognition of the Bermuda liquidation proceedings under Chapter 15. BCP resisted discovery, arguing lack of nexus to U.S. property, the pending proceeding rule concerning a U.K. arbitration (to which BCP is not a party), and the Stored Communications Act. Additionally, BCP filed a separate motion to vacate the recognition order, despite having an appeal on the same matter pending in the District Court. The Court granted the Liquidators' motion to compel discovery, finding the requested documents directly relevant under 11 U.S.C. § 1521(a)(4), and dismissed BCP's motion to vacate for lack of jurisdiction due to the ongoing appeal.

BankruptcyChapter 15Foreign Main ProceedingForeign Nonmain ProceedingDiscoveryDocument ProductionRule 2004Stored Communications ActAppealJurisdiction
References
14
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