United Food & Commercial Workers v. Appletree Markets, Inc. (In Re Appletree Markets, Inc.)
The court considered an appeal from the United Food and Commercial Workers (UFCW) challenging a bankruptcy court's order that rejected their collective bargaining agreements (CBAs) with AppleTree Markets, Inc., the debtor. AppleTree sought to dismiss the appeal as moot due to the substantial consummation of its Chapter 11 reorganization plan and the subsequent expiration of the CBAs, also arguing res judicata. The District Court denied AppleTree's motion to dismiss, finding that effective appellate relief remained possible and that res judicata did not apply given the UFCW's timely appeal. On the merits, the court affirmed the bankruptcy court's rejection of the CBAs, concluding that the debtor's proposed modifications were necessary for a successful reorganization and were fair and equitable to all affected parties.