In Re Saint Vincent's Catholic Medical Centers
St. Vincents Catholic Medical Centers of New York, a Chapter 11 debtor, objected to a $48.75 million claim filed by the New York State Department of Labor under the N.Y. WARN Act. The core issue was whether the bankruptcy court or an administrative proceeding by the Department of Labor was the appropriate forum to liquidate this claim. The Department of Labor argued for its administrative proceeding, citing the 'police powers' exception to the automatic stay, and also requested a determination by the Commissioner on certain issues. The Debtors contended the bankruptcy court had jurisdiction due to the proof of claim being filed. The court found it had core jurisdiction to determine the allowance and amount of the claim, declining to defer to another forum, especially given multiple related WARN claims. The court also denied the Debtors' request for an injunction, stating it was not properly brought as an adversary proceeding.