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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
Oct 15, 1979

In re the General Assignment for the Benefit of Creditors of Am-Lon Knit Goods Finishing Corp.

This proceeding involved an assignee for the benefit of creditors seeking judicial determination of priority among various creditor claims. The claims included those from the Federal Government, preferred wage claims, the New York State Tax Commission for income withholding taxes, the Industrial Commissioner for unemployment insurance contributions, the Director of Finance of the City of New York for various city taxes, and two insurance companies for workers' compensation insurance premiums. The court reconsidered an earlier decision and clarified that Labor Law § 574 is applicable and controlling in this context, establishing parity between New York State and City tax claims. Consequently, these tax claims were granted priority over the workers' compensation insurance premiums. The decision also distinguishes insolvency proceedings from decedent's estate cases, which are governed by SCPA 1811.

InsolvencyCreditor PriorityTax ClaimsUnemployment InsuranceWorkers' CompensationAssignee for Benefit of CreditorsState TaxesCity TaxesLabor LawSCPA
References
14
Case No. MISSING
Regular Panel Decision

Official Committee of Unsecured Creditors of 360networks (USA) Inc. v. Public Utilities Commission of California (In Re 360networks (USA) Inc.)

The Official Committee of Unsecured Creditors of 360networks (USA) Inc. (Debtors) initiated an adversary proceeding against the Public Utilities Commission of the State of California (CPUC) seeking to avoid certain fee payments as preferential transfers under the Bankruptcy Code. The CPUC moved to dismiss the action, asserting Eleventh Amendment sovereign immunity and arguing the court lacked jurisdiction. Judge Allan L. Gropper denied the CPUC's motion, concluding that the court holds in rem jurisdiction over the debtor's property in a preference action. The Court determined that the exercise of this jurisdiction would not offend state sovereignty, citing various forms of potential relief available, including the disallowance of claims by other California state instrumentalities.

Bankruptcy LawSovereign ImmunityEleventh AmendmentIn Rem JurisdictionPreference ActionMotion to DismissPublic Utilities CommissionCalifornia Environmental Quality ActDebtor-Creditor RelationsFederal Jurisdiction
References
45
Case No. MISSING
Regular Panel Decision

In Re Schatz Fed. Bearings Co., Inc.

The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) sought to withdraw from the Creditors’ Committee in the bankruptcy estate of Schatz Federal Bearings Co., Inc. The Creditors’ Committee opposed the withdrawal, aiming to preserve its appeal of an earlier ruling that deemed the UAW eligible to serve. The court granted the UAW's application to withdraw, citing that a creditor's willingness to serve is a key factor in committee composition and that compelling service is not justified when the creditor no longer has an interest in the case, especially since the debtor's business has ceased and its assets were liquidated. The court also noted the UAW's pension rights were guaranteed by ERISA and it had negotiated a new contract with the asset buyer, making its position on the committee academic.

BankruptcyCreditors' CommitteeUnion RepresentationMotion to WithdrawMootness DoctrineERISADebtor LiquidationJudicial DiscretionAdequate RepresentationVoluntary Service
References
2
Case No. 07-19-00350-CV
Regular Panel Decision
Nov 04, 2021

Michelle Latray as Receiver of the Assets of Clifton Boatright for the Benefit of Judgment Creditors W.L. Roberts, Dana Roberts, Erin Leigh Roberts, and Katelyn Robert Gonzales v. Colony Insurance Company D/B/A Colony Specialty Insurance Co.

Michelle Latray, acting as a receiver for judgment creditors of Clifton Boatright, appealed a summary judgment ruling which found Colony Insurance Company had no duty to defend or indemnify Boatright. Latray argued the trial court erred because Colony had a duty to defend and indemnify Boatright for damages caused by dumping debris and damaging fences, asserting the acts were negligent rather than intentional, or at least the fence damage was. The Court of Appeals, Seventh District of Texas at Amarillo, denied Latray's motion for rehearing. It affirmed the trial court's judgment, concluding that Boatright's act of dumping debris was intentional, thus not an 'occurrence' covered by the policy. Although the damage to fencing was negligent, the policy's auto exclusion applied to the use of the dump truck and trailer, negating Colony's duty to defend or indemnify for those damages as well.

Insurance CoverageDuty to DefendDuty to IndemnifySummary JudgmentAuto ExclusionIntentional TortsNegligenceProperty DamageDebris DumpingReceiver
References
51
Case No. MISSING
Regular Panel Decision

In Re Sphere Holding Corp.

The debtor, Sphere Holding Corp., operating as Williston Park Bagels, seeks injunctive relief against its creditors pending an appeal of a Bankruptcy Court order. The Bankruptcy Court, under Judge Holland, dismissed the debtor's Chapter 11 case due to non-appearance at a status conference, failure to file operating reports, and lack of a reorganization plan. The debtor appealed this dismissal. Prior attempts to secure an injunction from Judge Holland and Judge Johnson were unsuccessful. Now before District Judge Glasser, the debtor argues a strong likelihood of success on appeal, contending the three-month delay was not unreasonable given circumstances like attorney incapacity, and that the dismissal lacked a finding of prejudice to creditors. The debtor also asserts irreparable harm if collection efforts by creditors (including Joseph Richards, NYS Department of Taxation and Finance, IRS, Frank A. Serio & Sons, Inc., and Derle Farms) proceed, and that a stay would not substantially injure these parties nor be contrary to public policy. Judge Glasser granted the motion for injunctive relief, finding the debtor met the criteria for a stay pending appeal and did not require a bond.

BankruptcyChapter 11Injunctive ReliefStay Pending AppealDebtor's AppealCreditor CollectionIrreparable HarmAbuse of DiscretionEastern District of New York
References
20
Case No. 06cv4006, 06cv7877
Regular Panel Decision

Official Committee of Unsecured Creditors of Tower Automotive v. Debtors

The Official Committee of Unsecured Creditors appealed two Bankruptcy Court decisions approving settlements between debtor Tower Automotive, Inc. and various unions/retiree committees. The Creditors Committee argued that the settlements impermissibly favored retirees over other unsecured creditors by guaranteeing a 20 percent recovery on their unsecured claims, constituted a sub rosa reorganization plan, and did not satisfy Bankruptcy Rule 9019. The District Court affirmed the Bankruptcy Court's decisions, ruling that Section 1114 of the Bankruptcy Code allows for special treatment of retiree benefits. Additionally, the court found the settlements were not a sub rosa plan as they didn't dictate reorganization terms or dispose of all assets, and the Bankruptcy Court properly reviewed the settlements for reasonableness under Rule 9019, considering litigation risks and the best interests of all parties. The court also noted the practical difficulties of unwinding the settlements at that stage.

BankruptcyRetiree BenefitsUnsecured CreditorsSettlement ApprovalChapter 11Sub Rosa PlanCollective Bargaining AgreementsVEBA TrustsBankruptcy Code 1114Appeals
References
16
Case No. MISSING
Regular Panel Decision

Official Committee of Unsecured Creditors of LTV Aerospace and Defense Co. v. Official Committee of Unsecured Creditors of LTV Steel Co. (In re Chateaugay Corp.)

The Official Committee of Unsecured Creditors of LTV Aerospace and Defense Company (Aerospace Committee) appealed a Bankruptcy Court's November 5, 1991, order that authorized LTV Steel to make payments to the J & L Hourly Pension Plan. The Aerospace Committee claimed standing based on the potential consolidation of LTV estates, a prospective claim for contribution against LTV Steel, and the effect on their cash distributions. The District Court dismissed the appeal, ruling that the Aerospace Committee lacked standing. The court found their asserted interests too indirect and speculative, emphasizing that a party must be directly and adversely affected pecuniarily by a bankruptcy order to have standing for appeal.

Bankruptcy AppealStanding DoctrinePecuniary InterestCreditors' RightsPension Benefit Guaranty CorporationERISAChapter 11 BankruptcyCorporate ReorganizationJoint and Several LiabilityControlled Group
References
27
Case No. MISSING
Regular Panel Decision

In re the General Assignment for the Benefit of Creditors of Well Bilt Box Spring Corp.

An assignee for the benefit of creditors moved to disallow a claim for priority filed by the United Furniture Workers Insurance Fund. The fund sought $480 for unpaid group welfare insurance premiums, which accrued from September 1947 to April 1948 under a collective bargaining agreement. The assignee contended that the Debtor and Creditor Law section 21-a did not provide priority for such claims, arguing it applied to employee-contributed pension plans, not employer-paid insurance. The court referenced conflicting precedents from Matter of Seaboard Furniture Mfg. Corp. (Frey) and Matter of Hollywood Commissary, Inc. (Weintraub). Adopting the view of Justice Walsh, the court ruled that this was a contract matter between the employer and union, not a claim for wages, and noted the claim was made by the insurance carrier rather than the union or employees. Consequently, the court disallowed the claim for priority and granted the assignee's application to settle their account.

Priority ClaimAssignee for CreditorsInsurance FundCollective Bargaining AgreementWelfare InsuranceEmployer ContributionsDebtor and Creditor LawSection 21-aWage ClaimContract Dispute
References
2
Case No. MISSING
Regular Panel Decision

O'Neil v. Roman Catholic Diocese

A student worker at St. Ephrem’s Church (the plaintiff) experienced sexual harassment from a visiting priest. After a particularly egregious incident, she informed other parish priests who promptly referred her to law enforcement. The plaintiff subsequently sued the Roman Catholic Diocese of Brooklyn and St. Ephrem’s Church for sexual harassment, negligence, negligent hiring, and negligent supervision, arguing they should have known of the priest's propensity. The Supreme Court, Kings County, granted summary judgment to the Diocese defendants, dismissing the plaintiff's claims, finding they lacked actual or constructive knowledge. The appellate court affirmed this decision, concluding that the defendants met their burden in demonstrating no prior knowledge of the visiting priest's conduct and acted diligently once informed.

Sexual HarassmentHostile Work EnvironmentNegligenceNegligent HiringNegligent SupervisionSummary JudgmentEmployer LiabilityConstructive KnowledgeDiscriminationNew York City Human Rights Law
References
8
Case No. MISSING
Regular Panel Decision

Morales v. Ellen

This appeal concerns the application of the Texas Open Records Act (TORA) regarding the disclosure of investigative records pertaining to sexual harassment allegations against John Ellen, a former police lieutenant. The Attorney General challenged a trial court's decision that withheld the names and detailed statements of witnesses, citing privacy concerns, while ordering the release of Ellen's affidavit and the police board's findings. The appellate court affirmed the trial court's judgment, balancing the public's right to information about government affairs against the privacy rights of individuals involved in intimate and embarrassing sexual harassment investigations. It concluded that disclosing witness identities would discourage future reporting and cooperation, thereby upholding the privacy exemption under TORA.

Texas Open Records ActTORASexual HarassmentPrivacy RightsInvestigative RecordsGovernment TransparencyWitness ProtectionPublic OfficialsEctor CountyAppellate Law
References
11
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