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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
Mar 26, 1998

In Re Bagel Bros. Bakery & Deli, Inc.

This order addresses whether Federal Rule of Bankruptcy Procedure 1014(b) imposes an automatic stay on proceedings in a subsequently-filed bankruptcy case. The case involves three Chapter 11 cases of Bagel Bros. Maple, Inc. and Bagel Bros. Deli & Bakery, Inc. in the Western District of New York, which are related to earlier Chapter 11 cases of MBC in the District of New Jersey. MBC filed a motion in New Jersey seeking to transfer venue and requested that the New York court automatically stay its proceedings based on Rule 1014(b). Bankruptcy Judge Michael J. Kaplan ruled that Rule 1014(b) does not constitute an automatic or self-executing stay upon the mere filing of a motion. Instead, a judicial determination and order from the first-filed court (District of New Jersey) are required to impose such a stay, ensuring that substantive rights are not abridged and allowing for judicial discretion in emergency matters. Therefore, the proceedings in the Western District of New York are not automatically stayed.

Bankruptcy ProcedureAutomatic StayFederal Rule of Bankruptcy Procedure 1014(b)Venue TransferChapter 11 ReorganizationInter-district BankruptcyJudicial InterventionSubstantive RightsFranchise AgreementsCash Collateral Disputes
References
12
Case No. MISSING
Regular Panel Decision

TKO Fleet Enterprises, Inc. v. District 15, International Ass'n of MacHinists & Aerospace Workers

This case concerns a tort action filed by TKO Fleet Enterprises, Inc. against District 15, International Association of Machinists & Aerospace Workers, AFL-CIO (IAM) for intentional interference with business relationships. The plaintiff initially filed in New York state court, but the defendant removed the action to federal court, arguing federal question jurisdiction based on complete preemption under federal labor law. The court examined the defendant's arguments regarding the complete preemption doctrine under Sections 7 and 8 of the National Labor Relations Act (NLRA) and general federal labor law, particularly concerning injunctive relief. Ultimately, the court found no basis for federal jurisdiction, determining that the state law claims were not completely preempted. Therefore, the plaintiff's motion to remand the case back to New York state court was granted, returning jurisdiction to the state.

Intentional Interference with Business RelationsLabor DisputeFederal Question JurisdictionComplete Preemption DoctrineNational Labor Relations Act (NLRA)Motion to RemandState Law ClaimsFederal Labor LawInjunctive ReliefWell-Pleaded Complaint Rule
References
19
Case No. 79 Civ. 5379
Regular Panel Decision
Jul 15, 1980

Ninth Fed. Sav. & L. v. First Fed. Sav. & L.

This action arises from an agreement between Ninth Federal Savings and Loan Association of New York City and First Federal Savings and Loan Association of Gadsden County for the purchase of treasury securities. Ninth Federal alleged that First Federal's Controller, Henry Burnett, did not intend to honor the agreement if market conditions were unfavorable, stating a claim under the Securities and Exchange Act. The court addresses First Federal's challenge to personal jurisdiction over pendent state law breach of contract claims and Burnett's motion to transfer the case. The court affirms its jurisdiction over the state claims based on pendent jurisdiction and grants the motion to transfer the case to the United States District Court for the Northern District of Florida for convenience.

Securities FraudBreach of ContractPendent JurisdictionPersonal JurisdictionMotion to TransferForum Non ConveniensExtraterritorial ServiceSecurities Exchange ActRule 10b-5Long Arm Statute
References
16
Case No. MISSING
Regular Panel Decision

Microtech Contracting Corp. v. Mason Tenders District Council of Greater New York

Plaintiff Microtech Contracting Corporation sought a preliminary injunction to stop defendants, including the Mason Tenders District Council and Local 78, from displaying an inflatable rat at its work sites. Microtech argued this conduct violated a 'no-strike' provision in their collective bargaining agreement (CBA). The District Court denied the motion, citing a lack of jurisdiction under the Norris-LaGuardia Act because the underlying labor dispute was not subject to mandatory arbitration as per the CBA. The court also held that Section 104 of the Act specifically prohibits injunctions against publicizing labor disputes by non-fraudulent or non-violent means. Furthermore, the court determined that even if jurisdiction existed, the use of the inflatable rat was protected First Amendment speech and did not fall under the 'disruptive activity' clause of the CBA, which was interpreted to apply only to actions similar to work stoppages.

labor disputepreliminary injunctionNorris-LaGuardia Actcollective bargaining agreementFirst Amendmentinflatable ratunion protestno-strike clausearbitrabilityjurisdiction
References
22
Case No. MISSING
Regular Panel Decision

Diabo v. Delisle

Shaynah J. Diabo (mother) initiated a federal action under the International Child Abduction Remedies Act (ICARA) and the Hague Convention seeking the return of her minor child from the child's father and paternal grandparents. A previous April 2006 Order mandated the child's return to the mother in Canada and prohibited parties from seeking further custody orders. When the father subsequently filed a custody proceeding in Onondaga County Family Court, the mother sought a permanent injunction in federal court. The court granted the permanent injunction, finding that the state court action was barred by the Anti-Injunction Act's 'in aid of jurisdiction' and 'relitigation' exceptions. The federal court held that its retained jurisdiction and prior judgment on the child's best interest and habitual residence in Canada precluded relitigation of these issues in state court. The court also dismissed George M. Raus as a respondent and vacated an earlier Access Agreement, while directing the father to arrange visitation through a mediation center in Canada.

Child AbductionICARAHague ConventionPermanent InjunctionAnti-Injunction ActRes JudicataCollateral EstoppelFederal JurisdictionState Court InterferenceFamily Law
References
20
Case No. 97 Civ. 7455(SS)
Regular Panel Decision
Jan 09, 1998

Schepis v. LOCAL UNION NO. 17, UNITED BROTH.

The plaintiff, Benedetto Schepis, a former union official, sought reimbursement of legal defense costs from Local Union No. 17 and District Council of New York City after his criminal conviction was overturned. The Union removed the case from New York State Supreme Court to federal court, asserting federal question jurisdiction under the LMRDA and LMRA. Schepis moved to remand the action, arguing a lack of subject matter jurisdiction. The United States District Court for the Southern District of New York granted the motion to remand, finding no federal cause of action for reimbursement under the LMRDA or LMRA, and explicitly noting that LMRDA preserves state law claims. The court also awarded Schepis costs and reasonable attorney's fees incurred due to the improper removal.

Removal jurisdictionFederal questionLabor-Management Disclosure and Reporting ActLabor Management Relations ActUnion fiduciary dutiesState law claimsWell-pleaded complaint ruleComplete preemptionAttorney's feesRemand
References
25
Case No. MISSING
Regular Panel Decision
Apr 04, 2006

In re Tower Automotive, Inc.

Federal Insurance Company objected to a Bankruptcy Court order that recommended granting summary judgment to Tower Automotive, Inc. on Federal's obligation to pay defense costs for ERISA actions. Tower commenced the action seeking a declaration of insurance coverage for lawsuits related to its employee benefit plans. Federal denied coverage, citing an exclusion in its Fiduciary Liability Policy after Securities Actions were filed. The District Court, applying Michigan law, found both parties' interpretations of the exclusion reasonable but, due to ambiguity, construed the clause against Federal. Consequently, the District Court overruled Federal's objections and granted summary judgment in favor of Tower, affirming Federal's duty to defend.

ERISAFiduciary Liability InsuranceInsurance Coverage DisputeDuty to DefendSummary JudgmentPolicy Exclusion InterpretationContract LawMichigan Insurance LawFederal Court ReviewBankruptcy Court Findings
References
9
Case No. MISSING
Regular Panel Decision

Budget Dress Corp. v. Joint Board of Dress & Waistmakers' Union of Greater New York

The plaintiff, a jobber in the dress industry, sought a federal injunction to prevent the collection of a New York State court money judgment. This judgment confirmed an arbitration award against the plaintiff for failing to contribute to health, welfare, and retirement funds, and for using non-union contractors, in violation of collective bargaining agreements. The plaintiff argued the demands were unlawful under the Labor Management Relations Act and that the collective agreements violated the Sherman Act. The federal court denied the plaintiff's motion, citing the Anti-Injunction Act (28 U.S.C. § 2283), the plaintiff's failure to properly litigate the illegality claims in state court, and the absence of demonstrated irreparable harm. The court found that the plaintiff had ample opportunity to raise its arguments in state court and did not carry the burden for a preliminary injunction.

InjunctionLabor Management Relations ActCollective Bargaining AgreementArbitration AwardSherman ActFederal JurisdictionState Court JudgmentIrreparable HarmSupersedeas BondAnti-Injunction Act
References
20
Case No. MISSING
Regular Panel Decision

Delta-Sonic Carwash Systems, Inc. v. Building Trades Council

Delta-Sonic sought an injunction to prevent The Council from distributing handbills outside its carwashes in Rochester. The Council, representing various construction unions, initiated the protest against Delta-Sonic, believing it was affiliated with Benderson Corporation, which allegedly hired nonunion labor. Delta-Sonic claimed tortious interference with its business and denied affiliation, while The Council argued that federal labor law preempted the state court action. The court, presided over by Justice Kenneth R. Fisher, examined federal preemption doctrines, specifically Garmon and Machinists preemption. Ultimately, the court denied the preliminary injunction and dismissed the complaint, concluding that the peaceful handbilling was either arguably protected under NLRA Section 7 or intended by Congress to be left unregulated.

Labor Dispute InjunctionFederal Preemption DoctrineSecondary Boycott ActivityPeaceful Handbilling RightsLabor Management Relations ActNational Labor Relations ActGarmon DoctrineMachinists DoctrineFirst Amendment IssuesTortious Interference Claim
References
22
Case No. MISSING
Regular Panel Decision

Federal Insurance v. Watnick

Jay and Marianna Watnick, New York residents, were severely injured in a car accident in Quebec with Jay Anderson. They were insured by Federal Insurance Company under a policy with uninsured and underinsured motorist endorsements. After seeking limited compensation from Quebec's Régie, Federal denied their claims, arguing Anderson's vehicle was neither uninsured nor underinsured, and sought to stay arbitration. The Supreme Court granted Federal's application to stay both claims, but the Appellate Division reversed the stay for the underinsured claim. The Court of Appeals agreed that Anderson's vehicle was not uninsured. However, it disagreed with the Appellate Division on the underinsured claim, ruling that the Watnicks had not exhausted by payment the limits of all applicable bodily insurance policies as required by statute and their policy. Consequently, the Court modified the Appellate Division's order, granting Federal's application to permanently stay arbitration of the underinsured motorist claim, thereby reinstating the Supreme Court's original decision to stay both claims.

Underinsured Motorist CoverageUninsured Motorist EndorsementCar AccidentQuebec Automobile Insurance ActExhaustion of Policy LimitsInsurance LawVehicle and Traffic LawArbitration StayNew York Insurance PolicyInter-jurisdictional Accident
References
3
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