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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

In Re Spectrum Information Technologies, Inc.

This bankruptcy case concerns two motions: the Debtors' request to reject John Marchione's employment agreement and Marchione's application for his severance pay claim to be treated as an administrative expense. John Marchione, former president of a debtor subsidiary, was involuntarily terminated post-petition. The Court, presided over by Chief Judge Conrad B. Duberstein in the Eastern District of New York, ruled that the employment agreement was not an executory contract at the time of the rejection motion. Citing established Second Circuit precedent, the Court held that Marchione's severance pay, despite being calculated based on length of service, accrues entirely upon post-petition termination and thus qualifies as an administrative expense entitled to priority under the Bankruptcy Code. Consequently, the Debtors' motion to reject was denied, and Marchione's claim for $75,000 was granted administrative expense priority.

BankruptcyExecutory ContractsEmployment AgreementSeverance PayAdministrative ExpensePriority ClaimRejection of ContractChapter 11Debtor-in-PossessionSecond Circuit Precedent
References
35
Case No. ADJ4642991 (VNO 0556266)
Regular
Sep 09, 2011

## RICHARD ANTONETTE, vs. VOLT INFORMATION SCIENCES; MAJESTIC INSURANCE COMPANY, Administered by GALLAGHER BASSETT CLAIMS SERVICES

The Workers' Compensation Appeals Board (WCAB) granted reconsideration to review a proposed $\$4,600$ compromise and release agreement. The agreement attempts to settle applicant Richard Antonette's claim, waiving future medical treatment and noting a substantial temporary disability overpayment, but the WCAB lacks sufficient information for approval. Citing *Tensfeldt v. WCAB*, the WCAB emphasizes that a fraud conviction does not automatically bar all future benefits, requiring an individualized assessment of the facts. Therefore, the case is returned to the trial level to determine the adequacy of the settlement and any necessary further proceedings.

Workers' Compensation Appeals BoardReconsiderationCompromise and ReleaseWorkers' Compensation FraudInsurance Code Section 1871.4(a)(1)Labor Code Section 3207Tensfeldt v. Workers' Comp. Appeals Bd.Case-by-case determinationIndustrial injuryMedical evidence
References
2
Case No. MISSING
Regular Panel Decision

Wallach v. Smith (In re NanoDynamics, Inc.)

This case concerns a Chapter 7 Trustee's attempt to collect a $700,000 unpaid balance on a stock subscription agreement from Mr. and Mrs. Smith on behalf of the Debtor corporation, Nanodynamics. The defendants argued that the agreement was unenforceable due to the Debtor's failure to disclose critical financial information, including a liquidity crisis and potential Chapter 11 filing, before they signed. The Trustee asserted that the defendants, being sophisticated investors, waived their rights by making a subsequent payment after allegedly gaining knowledge of the undisclosed information. However, the court determined that the Debtor, had it sued before bankruptcy, could not have enforced the agreement, as it had internally acknowledged the necessity of these disclosures under securities regulations. The court therefore ruled that the stock subscription agreement was unenforceable under Section 10(b) and Rule 10b-5, effectively foreclosing the Trustee's claim on this particular legal theory.

BankruptcyChapter 7Stock Subscription AgreementSecurities LawRule 10b-5Section 10(b)Disclosure ObligationsMaterial InformationAdversary ProceedingSummary Judgment
References
20
Case No. MISSING
Regular Panel Decision

Morser v. AT & T INFORMATION SYSTEMS

Plaintiff Roy Morser filed an age discrimination complaint against defendant AT & T Information Systems (ATT-IS) after being laid off during a company-wide reduction-in-force. The court initially granted summary judgment in favor of ATT-IS, prompting Morser to file a motion for reargument. Morser based his motion on recent Second Circuit employment discrimination decisions, Montana and Ramseur, arguing that the court had overlooked or misapplied summary judgment standards, particularly regarding intent and drawing inferences in favor of the non-moving party. The court granted the motion for reargument, but upon reconsideration, reaffirmed its original decision to grant summary judgment to ATT-IS. The court found that its initial ruling had properly applied summary judgment standards and distinguished the facts of Morser's case from the precedents cited, noting the context of a massive layoff and lack of specific evidence of discriminatory intent.

Age DiscriminationSummary JudgmentReduction-in-Force (RIF)Rule 56 Fed.R.Civ.P.Rule 3(j) Civil Rules S.D.N.Y. & E.D.N.Y.Rule 59(e) Fed.R.Civ.P.Reargument MotionEmployment LawDisparate TreatmentSecond Circuit Precedent
References
20
Case No. MISSING
Regular Panel Decision

In re Arbitration between Arthur Murray, Inc. & Ricciardi

Justice Froessel dissents, advocating for the modification of the lower court's order. The petitioner seeks to stay arbitration concerning a dispute stemming from nine identical franchise agreements. Justice Froessel argues that the clear language of these agreements, coupled with the absence of a clause preventing unreasonable withholding of consent and the specific nature of the agreements, grants the petitioner the right to refuse consent to their assignment, citing several cases including Allhusen v. Caristo Constr. Corp. The dissenting opinion also asserts that the rule of good faith does not apply in this context. Consequently, it is argued that the portion of the dispute related to damages from the arbitrary withholding of consent to assignments is not arbitrable. Therefore, the orders of the court below should be modified to grant the petitioner's application to stay arbitration regarding the damages claim arising from the refusal to consent to the assignment of franchise agreements; otherwise, affirmed.

arbitration stayfranchise agreementsassignment of contractsconsent withholdingcontract interpretationgood faith rulenon-arbitrable claimsappellate reviewdissenting opinioncontractual rights
References
12
Case No. MISSING
Regular Panel Decision
Mar 19, 2002

Claim of Estate of Lutz v. Lakeside Beikirk Nursing Home

The case involves an appeal by a claimant from two Workers' Compensation Board decisions concerning a waiver agreement. The decedent, Beverly Lutz, her employer, and carrier had a proposed settlement agreement that was filed but not yet approved when she died. The Board, through Commissioner Tremiti, refused to honor the agreement after the carrier and Special Funds withdrew their consent. Although an approval notice was mistakenly issued, the Board later corrected it, ruling the agreement was never approved. The appellate court affirmed the Board's decision, holding that the Board had continuing jurisdiction to correct its error and that the withdrawal of consent by the carrier and Special Funds justified the disapproval of the agreement.

Workers' CompensationSettlement AgreementWaiver AgreementDeath BenefitsBoard ReviewJurisdictionConsent WithdrawalStatutory InterpretationRegulation ValidityAppellate Review
References
11
Case No. MISSING
Regular Panel Decision
Oct 31, 2013

Gottlieb v. Gottlieb

This dissenting opinion addresses an appeal and cross-appeal concerning the enforceability of a prenuptial agreement between a wealthy plaintiff (husband) and a defendant (wife). The defendant challenged the agreement, alleging overreaching and manifest unfairness during negotiations, while the plaintiff sought its enforcement. Although the motion court granted a trial on the maintenance waiver, it dismissed other counterclaims. Justice Feinman's dissent argues that summary judgment should be denied for all counterclaims, emphasizing the need for a full trial to assess the credibility of the parties and resolve material factual disputes regarding the plaintiff's conduct during negotiations and the agreement's potentially unfair terms, particularly highlighting the distinct legal standard of 'manifest unfairness' in marital agreements.

prenuptial agreementmarital agreementsummary judgmentunconscionabilitymanifest unfairnessoverreachingfiduciary dutyequitable distributionspousal maintenance waiverproperty distribution
References
46
Case No. MISSING
Regular Panel Decision
Aug 01, 2006

In Re Northwest Airlines Corp.

Northwest Airlines Corporation and its affiliates (Debtors) filed a motion under § 1113 of the Bankruptcy Code to reject a collective bargaining agreement with the Professional Flight Attendants Association (PFAA) after PFAA's membership failed to ratify a negotiated agreement. The Bankruptcy Court, presided over by Judge Allan L. Gropper, found that the rejection was necessary for the Debtors' reorganization. The court also determined that PFAA rejected the Debtors' proposal without good cause and that the balance of equities clearly favored rejection. Consequently, the court authorized the Debtors to reject the agreement and implement new terms, specifically those of the March 1 Agreement, with a fourteen-day stay to allow for further negotiation. This decision aims to facilitate the airline's financial restructuring and emergence from Chapter 11.

Bankruptcy LawCollective BargainingAirline ReorganizationLabor DisputeSection 1113 MotionUnion NegotiationsFlight AttendantsWage ConcessionsWork Rule ChangesGood Cause Standard
References
22
Case No. MISSING
Regular Panel Decision

Civil Service Forum v. New York City Transit Authority

This case involves an appeal concerning the legality of an agreement made by the New York City Transit Authority (Authority) with the Transport Workers Union of America (TWU) and Amalgamated Association (Amalgamated), granting them exclusive collective bargaining rights for hourly paid employees. The Civil Service Forum, a labor union, and its members, employees of the Authority, initiated a declaratory judgment action, arguing that these exclusive rights were unconstitutional and discriminatory. The Special Term initially granted the Authority and TWU's motions to dismiss the complaint. However, the appellate court reversed this decision, finding that the Authority had the power under the Public Authorities Law to enter into such agreements. The court clarified that the agreement, while granting exclusive representation in grievance processing, still preserved individual employees' rights to present grievances and did not compel union membership. Ultimately, the court directed a declaratory judgment affirming the validity of the Authority's resolutions, election, agreements, and policy statements.

Labor LawCollective BargainingPublic AuthoritiesDeclaratory JudgmentConstitutional RightsDue ProcessEqual ProtectionGrievance ProceduresExclusive RepresentationTransit Authority
References
23
Case No. MISSING
Regular Panel Decision

In re the Arbitration between Camhi & Undergarment & Negligee Workers Union, Local 62

The case involves a petitioner's motion to stay arbitration under a collective bargaining agreement. The court reversed a previous order denying the stay and granted the motion. The central issue is whether the arbitration clause extends to the petitioner's individual business operations established after leaving a partnership, rather than to obligations predating the partnership's dissolution. The majority ruled that disputes related to the petitioner's separate business are not subject to the arbitration agreement because the individual business is not represented by the trade association. A dissenting opinion argued that the broad arbitration clause should empower arbitrators to determine the scope, particularly if the union alleges deliberate circumvention of the agreement.

ArbitrationCollective Bargaining AgreementStay of ArbitrationScope of ArbitrationPartnership DissolutionIndividual LiabilityTrade AssociationJudicial ReviewArbitrabilityContract Interpretation
References
14
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