Air Line Pilots Ass'n, International v. Eastern Air Lines, Inc. (In Re Ionosphere Clubs, Inc.)
The Air Line Pilots Association International (ALPA) moved to lift the automatic stay imposed during Eastern Air Lines, Inc.'s Chapter 11 bankruptcy proceedings. ALPA sought to continue three arbitration proceedings related to a pay-parity provision in their collective bargaining agreement, which had been automatically stayed. The court considered the federal policy favoring labor arbitration, the potential impact on the bankruptcy estate, and the willingness of arbitrators to allow the Official Unsecured Creditor’s Committee to participate. Finding that 'cause' existed to modify the stay and noting the availability of claims estimation under 11 U.S.C. § 502(c) as a safeguard against undue delay, the court granted ALPA's motion, allowing the arbitration proceedings to resume.