In re Continental Air Lines, Corp.
This case addresses claims for accrued but unused sick leave filed by various unions and non-union individuals against Continental Air Lines, Inc. and Texas International Airlines, Inc., which are debtors in a Chapter 11 reorganization. The debtors sought summary judgment to disallow these claims for terminated employees, arguing that neither collective bargaining agreements nor the Corporate Policy Manual provided for cash payment of unused sick leave upon termination. The court affirmed its jurisdiction over such claims, rejecting arguments for deferral to a system board of adjustment. It found that the relevant agreements and past practices did not create a right to payment for unused sick leave upon termination. Consequently, the court granted summary judgment for the debtors, disallowing all sick leave claims by or on behalf of terminated Continental employees.