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

Case No. Proof of Claim No. 149
Regular Panel Decision

In re DeWitt Rehabilitation & Nursing Center, Inc.

The Debtor, DeWitt Rehabilitation and Nursing Center, Inc., moved to expunge the priority portion of a claim filed by United Staffing Registry, Inc. The Claimant sought priority status for social security, Medicare, and unemployment payments made for temporary employees it provided, citing 11 U.S.C. § 507(a)(5). Bankruptcy Judge Allan L. Gropper analyzed the application of § 507(a)(5) in light of case precedents, including Howard Delivery Service, Inc. The Court determined that the priority under § 507(a)(5) is intended to protect contributions for a debtor's direct employees, and the temporary employees were not employees of DeWitt. Consequently, the Debtor's objection was sustained, disallowing the priority and reclassifying the entire claim as a general unsecured claim, while also denying the Debtor's request for legal fees.

Bankruptcy LawPriority ClaimsEmployee Benefit Plans11 U.S.C. § 507(a)(5)Temporary EmployeesUnsecured ClaimsIndemnificationLegal FeesClaim ExpungementStatutory Interpretation
References
9
Case No. Docket # 7
Regular Panel Decision

Empire Enterprises JKB, Inc. v. Union City Contractors, Inc.

This case involves a breach of contract claim by Empire Enterprises JKB, Inc. against Union City Contractors, Inc. for unpaid debris removal services, and a Miller Act claim against Union City's sureties, Nova Casualty Company and Nova American Groups, Inc. After a bench trial in January 2008, Union City filed for bankruptcy, leading to an automatic stay on claims against them. The court, however, proceeded with Empire's Miller Act claim against Nova. The primary dispute concerned the quantity of debris removed, with Empire claiming 11,470 cubic yards. The court found Empire's evidence credible and rejected Nova's fraud defense, ultimately granting judgment in favor of Empire against Nova for $84,653.63, plus prejudgment interest.

Miller Act claimPayment bondBreach of contractSurety liabilityFederal public works projectDebris removalCubic yardage disputePrejudgment interestAttorney's fees deniedFraud affirmative defense
References
29
Case No. MISSING
Regular Panel Decision

Suzy Phillips Originals, Inc. v. Coville, Inc.

This case involves a dispute over defective fabric supplied by defendant Coville, Inc., a textile converter, to plaintiff Suzy Phillips Originals, Inc., a garment manufacturer. Suzy Phillips filed claims for breach of contract, negligence, and misrepresentation. Coville moved for summary judgment to dismiss these claims. The Court granted summary judgment for Coville on the breach of contract claim for lost profits (Second Cause of Action) and the misrepresentation claim (Fourth Cause of Action). Suzy Phillips voluntarily withdrew its negligence claim (Third Cause of Action). The Court denied Coville's motion to remand the case to state court, exercising supplemental jurisdiction over the remaining First Cause of Action for breach of contract, which seeks damages for the cost of goods sold. The Court also denied motions for sanctions and attorneys' fees.

Contract DisputeSummary JudgmentNegligenceMisrepresentationBreach of ContractUniform Commercial CodeSale of GoodsTextile IndustryDamage LimitationLost Profits
References
37
Case No. MISSING
Regular Panel Decision

Claim of Baker v. Wessel Duval, Inc.

The case involves an appeal from a Workers’ Compensation Board decision that found a decedent, a director and shareholder of Wessel Duval, Inc., to be an employee eligible for benefits after suffering a fatal stroke during a board meeting. The Workers’ Compensation Law Judge initially awarded benefits, which the Board affirmed. The employer appealed, arguing against the employer-employee relationship. The appellate court, referencing the precedent of *Matter of Nallan v Motion Picture Studio Mechanics Union*, reversed the Board's finding. It concluded that there was insufficient evidence of control by Wessel Duval, Inc. over the decedent, such as a salary, employment contract, or the right to discharge from an employment role, despite the decedent's contributions to the business. Consequently, the claim for workers' compensation benefits was dismissed.

Employer-Employee RelationshipWorkers' Compensation BenefitsAppellate DivisionCorporate DirectorShareholder StatusControl TestLack of Employment ContractStipend vs. SalaryBoard of Directors MeetingStroke Death
References
3
Case No. 06-CV-2225(JFB)(AKT)
Regular Panel Decision
Jan 14, 2010

Fragrancenet. Com, Inc. v. Fragrancex. Com, Inc.

Plaintiff FragranceNet.com, Inc. sued defendant FragranceX.com, Inc. alleging copyright and trademark infringement, trademark dilution, and other state law violations. FragranceNet claimed FragranceX copied over 900 copyrighted product images and misused its trademarks in metatags and Google's AdWords program to divert consumers. Defendant moved to dismiss the complaint, arguing that FragranceNet's images lacked copyrightable originality and that FragranceNet did not have enforceable trademark rights. The Court denied the motion, ruling that FragranceNet's claims were plausible, citing the presumption of originality from copyright registration and the validity of trademark assignments allowing for past infringement claims. The Court also determined that the defendant's champerty defense presented factual issues inappropriate for a motion to dismiss.

Copyright InfringementTrademark InfringementTrademark DilutionUnfair CompetitionMisappropriationUnjust EnrichmentMotion to DismissOriginality of CopyrightDerivative WorksLanham Act
References
73
Case No. MISSING
Regular Panel Decision

Allen v. Telergy Network Services, Inc.

Plaintiff Luc D. Allen, an employee of Marais Trenching, Inc., was seriously injured while repairing a trenching machine on a fiber optic cable project. He and his wife filed an action against Telergy Network Services, Inc. (owner) and Mastec North America, Inc. d/b/a Wilde Construction (general contractor), alleging common-law negligence and violations of Labor Law §§ 200, 240 (1), and 241 (6), as well as a contractual third-party beneficiary claim. The defendants and third-party defendant Marais Trenching, Inc. moved for summary judgment, which was granted by the Supreme Court, dismissing all claims. On appeal, the plaintiffs’ claims under Labor Law § 200, § 241 (6), and the third-party beneficiary claim were reviewed. The appellate court affirmed the dismissal, finding no control by Telergy or Wilde over the repair work, no violation of 12 NYCRR 23-9.5 (f), and that the plaintiff was not an intended third-party beneficiary of the highway work permit or the contract between Telergy and Wilde.

Labor Law § 200Labor Law § 241(6)Summary JudgmentTrenching AccidentConstruction Site SafetyThird-Party Beneficiary ClaimAppellate AffirmationEmployer ResponsibilityGeneral Contractor LiabilityUnsafe Work Condition
References
9
Case No. MISSING
Regular Panel Decision

Brian Fay Construction, Inc. v. Morstan General Agency, Inc.

Brian Fay Construction, Inc. (plaintiff) contracted with J.E Spano and Company, agreeing to indemnify Spano. The plaintiff then instructed its insurance agents, DFW Associates, Inc. and Douglass Fenning (together DFW), and later Morstan General Agency, Inc., to add Spano as an additional insured to its general liability policy with Burlington Insurance Company. An employee of Brian Fay Construction was injured, leading to a claim against Spano and a third-party action against the plaintiff. Burlington denied coverage, citing an employee exclusion and stating there was no evidence Spano was an additional insured. The plaintiff sued the agents for failing to properly procure insurance, seeking a declaration that they were obligated to defend and indemnify. The Supreme Court granted the plaintiff's motion for summary judgment, but the appellate court reversed, finding that the plaintiff failed to prove that Burlington would have been obligated to cover the claim even if Spano had been properly named as an additional insured.

Insurance Broker LiabilityAdditional InsuredSummary JudgmentDuty to Procure InsuranceIndemnificationGeneral Liability PolicyEmployee Liability ExclusionAppellate ReviewConstruction ContractInsurance Coverage Dispute
References
6
Case No. 2022 NY Slip Op 06969 [211 AD3d 1194]
Regular Panel Decision
Dec 08, 2022

Integrity Intl., Inc. v. HP, Inc.

Plaintiff, Integrity International, Inc., doing business as Tarrenpoint, sued defendants, HP, Inc., for breach of service agreements dating from 1994 to 2016, primarily concerning defendants' alleged failure to make timely payments and pay late fees. The Supreme Court partially granted defendants' motion for partial summary judgment, dismissing claims for breach of contract and breach of the implied duty of good faith and fair dealing as time-barred, and also dismissing claims for late fees, finding them not contemplated by the agreements. On appeal, the Appellate Division affirmed the Supreme Court's dismissal regarding late fees and the timeliness of breach of contract claims. However, the Appellate Division found triable issues of fact concerning whether defendants breached the implied covenant of good faith and fair dealing by diverting clients and workers. The court also held that limitation of liability clauses in the agreements were enforceable, precluding consequential damages but allowing for the recovery of general damages.

Contract DisputeTimely PaymentLate FeesSummary JudgmentStatute of LimitationsImplied CovenantGood Faith and Fair DealingLimitation of LiabilityConsequential DamagesGeneral Damages
References
28
Case No. MISSING
Regular Panel Decision

Wolfe v. KLR Mechanical, Inc.

Plaintiff Malcolm Wolfe, a millwright employed by DLX Inc., was injured when he slipped on a threaded rod while working at defendant Irving Tissue, Inc.'s paper mill. Wolfe and his wife filed an action alleging negligence and violations of Labor Law §§ 200 and 241 (6) against Irving Tissue, Inc., Northeast Riggers & Erectors, Inc. (general contractor), and KLR Mechanical, Inc. (subcontractor). The Supreme Court granted summary judgment to all defendants, dismissing the complaint. On appeal, the court affirmed the dismissal of the Labor Law § 241 (6) claims against all defendants and the other claims against Northeast Riggers & Erectors, Inc. and KLR Mechanical, Inc. However, the court reversed the summary judgment granted to Irving Tissue, Inc. concerning common-law negligence and Labor Law § 200, finding that Irving retained control of the stairway and failed to establish a lack of constructive notice of the dangerous condition. The case was remitted for further proceedings against Irving Tissue, Inc.

Labor LawSummary JudgmentPremises LiabilityConstruction AccidentRoutine MaintenanceIndustrial CodeAppellate DivisionSpecial EmployeeConstructive NoticeDangerous Condition
References
21
Case No. MISSING
Regular Panel Decision

Zinaman v. USTS New York, Inc.

Lawrence M. Zinaman sued USTS New York, Inc. and US-Travel Systems, Inc. for breach of contract, fraud, and age discrimination under the ADEA and New York's Human Rights Law. Defendants moved to dismiss several claims. The court granted the motion to dismiss all claims against US-Travel Systems, Inc., finding insufficient pleading for an 'alter ego' theory. The fraud claim against USTS New York, Inc. was also dismissed, as it merely restated the breach of contract claim. However, the court denied the dismissal of Zinaman's state common law contract claims and state age discrimination claims against USTS. The court also denied the defendants' motion to strike portions of the complaint. Zinaman was directed to amend his complaint regarding the state age discrimination claim.

Age DiscriminationBreach of ContractFraudEmployment AgreementAlter Ego TheoryPendent JurisdictionMotion to DismissRule 12(b)(6)Rule 12(f)ADEA
References
20
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