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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
Oct 15, 1979

In re the General Assignment for the Benefit of Creditors of Am-Lon Knit Goods Finishing Corp.

This proceeding involved an assignee for the benefit of creditors seeking judicial determination of priority among various creditor claims. The claims included those from the Federal Government, preferred wage claims, the New York State Tax Commission for income withholding taxes, the Industrial Commissioner for unemployment insurance contributions, the Director of Finance of the City of New York for various city taxes, and two insurance companies for workers' compensation insurance premiums. The court reconsidered an earlier decision and clarified that Labor Law § 574 is applicable and controlling in this context, establishing parity between New York State and City tax claims. Consequently, these tax claims were granted priority over the workers' compensation insurance premiums. The decision also distinguishes insolvency proceedings from decedent's estate cases, which are governed by SCPA 1811.

InsolvencyCreditor PriorityTax ClaimsUnemployment InsuranceWorkers' CompensationAssignee for Benefit of CreditorsState TaxesCity TaxesLabor LawSCPA
References
14
Case No. MISSING
Regular Panel Decision

Official Committee of Unsecured Creditors of 360networks (USA) Inc. v. Public Utilities Commission of California (In Re 360networks (USA) Inc.)

The Official Committee of Unsecured Creditors of 360networks (USA) Inc. (Debtors) initiated an adversary proceeding against the Public Utilities Commission of the State of California (CPUC) seeking to avoid certain fee payments as preferential transfers under the Bankruptcy Code. The CPUC moved to dismiss the action, asserting Eleventh Amendment sovereign immunity and arguing the court lacked jurisdiction. Judge Allan L. Gropper denied the CPUC's motion, concluding that the court holds in rem jurisdiction over the debtor's property in a preference action. The Court determined that the exercise of this jurisdiction would not offend state sovereignty, citing various forms of potential relief available, including the disallowance of claims by other California state instrumentalities.

Bankruptcy LawSovereign ImmunityEleventh AmendmentIn Rem JurisdictionPreference ActionMotion to DismissPublic Utilities CommissionCalifornia Environmental Quality ActDebtor-Creditor RelationsFederal Jurisdiction
References
45
Case No. MISSING
Regular Panel Decision

In Re Schatz Fed. Bearings Co., Inc.

The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) sought to withdraw from the Creditors’ Committee in the bankruptcy estate of Schatz Federal Bearings Co., Inc. The Creditors’ Committee opposed the withdrawal, aiming to preserve its appeal of an earlier ruling that deemed the UAW eligible to serve. The court granted the UAW's application to withdraw, citing that a creditor's willingness to serve is a key factor in committee composition and that compelling service is not justified when the creditor no longer has an interest in the case, especially since the debtor's business has ceased and its assets were liquidated. The court also noted the UAW's pension rights were guaranteed by ERISA and it had negotiated a new contract with the asset buyer, making its position on the committee academic.

BankruptcyCreditors' CommitteeUnion RepresentationMotion to WithdrawMootness DoctrineERISADebtor LiquidationJudicial DiscretionAdequate RepresentationVoluntary Service
References
2
Case No. MISSING
Regular Panel Decision

In Re Sphere Holding Corp.

The debtor, Sphere Holding Corp., operating as Williston Park Bagels, seeks injunctive relief against its creditors pending an appeal of a Bankruptcy Court order. The Bankruptcy Court, under Judge Holland, dismissed the debtor's Chapter 11 case due to non-appearance at a status conference, failure to file operating reports, and lack of a reorganization plan. The debtor appealed this dismissal. Prior attempts to secure an injunction from Judge Holland and Judge Johnson were unsuccessful. Now before District Judge Glasser, the debtor argues a strong likelihood of success on appeal, contending the three-month delay was not unreasonable given circumstances like attorney incapacity, and that the dismissal lacked a finding of prejudice to creditors. The debtor also asserts irreparable harm if collection efforts by creditors (including Joseph Richards, NYS Department of Taxation and Finance, IRS, Frank A. Serio & Sons, Inc., and Derle Farms) proceed, and that a stay would not substantially injure these parties nor be contrary to public policy. Judge Glasser granted the motion for injunctive relief, finding the debtor met the criteria for a stay pending appeal and did not require a bond.

BankruptcyChapter 11Injunctive ReliefStay Pending AppealDebtor's AppealCreditor CollectionIrreparable HarmAbuse of DiscretionEastern District of New York
References
20
Case No. 06cv4006, 06cv7877
Regular Panel Decision

Official Committee of Unsecured Creditors of Tower Automotive v. Debtors

The Official Committee of Unsecured Creditors appealed two Bankruptcy Court decisions approving settlements between debtor Tower Automotive, Inc. and various unions/retiree committees. The Creditors Committee argued that the settlements impermissibly favored retirees over other unsecured creditors by guaranteeing a 20 percent recovery on their unsecured claims, constituted a sub rosa reorganization plan, and did not satisfy Bankruptcy Rule 9019. The District Court affirmed the Bankruptcy Court's decisions, ruling that Section 1114 of the Bankruptcy Code allows for special treatment of retiree benefits. Additionally, the court found the settlements were not a sub rosa plan as they didn't dictate reorganization terms or dispose of all assets, and the Bankruptcy Court properly reviewed the settlements for reasonableness under Rule 9019, considering litigation risks and the best interests of all parties. The court also noted the practical difficulties of unwinding the settlements at that stage.

BankruptcyRetiree BenefitsUnsecured CreditorsSettlement ApprovalChapter 11Sub Rosa PlanCollective Bargaining AgreementsVEBA TrustsBankruptcy Code 1114Appeals
References
16
Case No. MISSING
Regular Panel Decision

Official Committee of Unsecured Creditors of LTV Aerospace and Defense Co. v. Official Committee of Unsecured Creditors of LTV Steel Co. (In re Chateaugay Corp.)

The Official Committee of Unsecured Creditors of LTV Aerospace and Defense Company (Aerospace Committee) appealed a Bankruptcy Court's November 5, 1991, order that authorized LTV Steel to make payments to the J & L Hourly Pension Plan. The Aerospace Committee claimed standing based on the potential consolidation of LTV estates, a prospective claim for contribution against LTV Steel, and the effect on their cash distributions. The District Court dismissed the appeal, ruling that the Aerospace Committee lacked standing. The court found their asserted interests too indirect and speculative, emphasizing that a party must be directly and adversely affected pecuniarily by a bankruptcy order to have standing for appeal.

Bankruptcy AppealStanding DoctrinePecuniary InterestCreditors' RightsPension Benefit Guaranty CorporationERISAChapter 11 BankruptcyCorporate ReorganizationJoint and Several LiabilityControlled Group
References
27
Case No. MISSING
Regular Panel Decision

In re the General Assignment for the Benefit of Creditors of Well Bilt Box Spring Corp.

An assignee for the benefit of creditors moved to disallow a claim for priority filed by the United Furniture Workers Insurance Fund. The fund sought $480 for unpaid group welfare insurance premiums, which accrued from September 1947 to April 1948 under a collective bargaining agreement. The assignee contended that the Debtor and Creditor Law section 21-a did not provide priority for such claims, arguing it applied to employee-contributed pension plans, not employer-paid insurance. The court referenced conflicting precedents from Matter of Seaboard Furniture Mfg. Corp. (Frey) and Matter of Hollywood Commissary, Inc. (Weintraub). Adopting the view of Justice Walsh, the court ruled that this was a contract matter between the employer and union, not a claim for wages, and noted the claim was made by the insurance carrier rather than the union or employees. Consequently, the court disallowed the claim for priority and granted the assignee's application to settle their account.

Priority ClaimAssignee for CreditorsInsurance FundCollective Bargaining AgreementWelfare InsuranceEmployer ContributionsDebtor and Creditor LawSection 21-aWage ClaimContract Dispute
References
2
Case No. 91 Civ. 8373 (DNE)
Regular Panel Decision
Jul 07, 1992

In Re Chateaugay Corp.

This case involves an appeal by the Official Committee of Unsecured Creditors of LTV Aerospace and Defense Company (Aerospace Committee) from a Bankruptcy Court order. The order authorized LTV Steel Company, Inc. to make payments to a pension plan. The LTV Corporation and its affiliates had filed for Chapter 11 bankruptcy in 1986, with cases procedurally but not substantively consolidated. The Aerospace Committee claimed standing to appeal, arguing potential impact from a future unitary reorganization plan, a claim for contribution, and effects on cash distributions. The District Court dismissed the appeal, finding that the Aerospace Committee lacked standing because its pecuniary interests were not directly and adversely affected, and its arguments were speculative.

Bankruptcy AppealStandingPecuniary InterestUnsecured Creditors CommitteePension Plan FundingERISAControlled Group LiabilityChapter 11 ProceedingsProcedural ConsolidationSubstantive Consolidation
References
29
Case No. MISSING
Regular Panel Decision

In Re Thomson McKinnon Securities, Inc.

The Chapter 11 debtor, Thomson McKinnon Securities, Inc., moved to disallow James E. Parks' claim, arguing it was filed after the court-ordered bar date of October 30, 1990. Parks, a former customer, did not receive actual notice of the bar date, although the debtor was aware of his potential claim through letters from Legal Services. The court found that due process requires actual notice for known creditors and determined that the debtor had actual notice of Parks' asserted claim. Therefore, the court concluded that Parks was entitled to actual notice, which he did not receive, and granted an extension for his claim. Parks' proof of claim, filed on May 17, 1993, was deemed timely, and the debtor's motion to expunge was denied.

Bankruptcy LawProof of ClaimBar DateExcusable NeglectActual NoticeConstructive NoticeDue ProcessCreditors' RightsChapter 11Debtor in Possession
References
3
Case No. MISSING
Regular Panel Decision

Committee of Unsecured Creditors of Interstate Cigar Co. v. Interstate Distribution, Inc. (In Re Interstate Cigar Co.)

This Memorandum Decision addresses the Plaintiff's Motion for Summary Judgment regarding damages in an adversary proceeding. The Committee of Unsecured Creditors of Interstate Cigar Co., Inc. sued Interstate Distribution, Inc. and Congress Financial Corporation, alleging violations of Article 6 of the Uniform Commercial Code (Bulk Sales Law). A New York State Appellate Court had already determined Congress's liability for violating the Bulk Sales Law. The Bankruptcy Court, presided over by Judge Dorothy Eisenberg, was tasked with determining the appropriate damages. The court granted summary judgment in favor of the Plaintiff, concluding that Congress is liable for the value of the inventory and equipment transferred, fixing damages at $14,976,662.00. The decision also awarded prejudgment interest to compensate the Plaintiff for Congress's wrongful retention of asset value, with the specific interest rate to be determined in a subsequent hearing.

Bankruptcy LawBulk Sales LawUniform Commercial Code Article 6Summary JudgmentDamages CalculationPrejudgment InterestFraudulent ConveyanceAsset TransferCreditor ProtectionTrustee Powers
References
40
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