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Access over workers' compensation decisions, including En Banc, Significant Panel Decisions, and writ-denied cases.

Case No. Claim No. 300000720; ECF Doc. # 7818
Regular Panel Decision

In re MF Global Inc.

This case involves an objection by the SIPA Trustee of MF Global Inc. (MFGI) to a putative class claim filed by former employees for damages under the WARN Act and for unpaid accrued vacation time. The Court previously dismissed the WARN Act claims in related adversary proceedings (Thielmann I and II). The class claimants conceded their WARN Act claims were barred, leading the Court to sustain the Trustee's objection to those claims. However, the Court overruled the Trustee's objection to the claim for unpaid accrued vacation time, finding that the putative class claim satisfied the requirements for class certification under Federal Rule of Civil Procedure 23. The Court emphasized that allowing the vacation pay claim to proceed as a class action would result in the most expeditious administration of the MFGI estate, especially since the Trustee had conceded liability for vacation pay. The MFGI Class Claimants were directed to file a motion for class certification as soon as practicable.

BankruptcyClass ActionWARN ActVacation Pay ClaimsClass CertificationRule 23Claims ObjectionSIPA LiquidationEmployee BenefitsBar Date
References
27
Case No. ADJ3395089 (STK 0177203) ADJ2229380 (STK 0196966)
Regular
Apr 20, 2009

ROBERT MILLER vs. CAROL-CARTER DESIGN & CONSTRUCTION, STATE COMPENSATION INSURANCE FUND

The Appeals Board initially proposed sanctions against attorney Michael Linn, Esq., mistakenly listing the service date for his objection period. Despite Mr. Linn filing objections on March 4th and April 6th/9th, which were not technically untimely based on the actual service dates, the Board granted him further opportunities to respond. Ultimately, the Board extended the deadline to May 20, 2009, for Mr. Linn to file any additional objections to the proposed $\$ 500.00$ monetary sanction, citing potential service discrepancies and aiming to avoid any appearance of prejudice.

Workers' Compensation Appeals Boardmonetary sanctionsnotice of intentiondue processservice date discrepancyobjection to sanctionsadditional timeCalifornia Code of Regulationsfurlough directivesstate holidays
References
2
Case No. MISSING
Regular Panel Decision

Matter of Kessler

William B. Kessler, Inc. (Kessler), a clothing manufacturer, filed for Chapter 11 bankruptcy. Kessler was party to collective bargaining agreements requiring contributions to a Multi-employer Pension Plan (MPP). Upon cessation of operations, a withdrawal liability became due to the Amalgamated Clothing and Textile Workers Union ('the Union'). The Union filed several claims for this withdrawal liability, seeking administrative priority status. Kessler objected, arguing that the withdrawal liability was based on pre-petition services and did not qualify as an administrative expense under Bankruptcy Code § 507(a)(1). The court sustained Kessler's objection, expunging duplicative claims and reclassifying the remaining withdrawal liability claim as a general unsecured claim, concluding it was not entitled to administrative status.

BankruptcyChapter 11Collective Bargaining AgreementMulti-employer Pension PlanMPPAWithdrawal LiabilityAdministrative ExpensesPriority ClaimsUnsecured ClaimsSeverance Pay
References
7
Case No. 533038
Regular Panel Decision
Jun 23, 2022

In the Matter of the Claim of Danielle Sequino

Claimant Danielle Sequino sustained numerous work-related injuries in 2007, leading to a classification of permanently totally disabled in 2011. The employer and its carrier objected to multiple medical bills, with a Workers' Compensation Law Judge (WCLJ) sustaining these objections in April 2020. The Workers' Compensation Board largely upheld this decision but held objections related to colitis treatment in abeyance. On appeal, the claimant challenged the Board's denial of 26 medical bills based on a lack of causal relationship to established conditions. The Appellate Division found that both the WCLJ and the Board failed to provide adequate reasoning or an evidentiary basis for their determinations, thus precluding proper appellate review. As a result, the court modified the Board's decisions, reversed the ruling on causal relationship for the disputed medical bills, and remitted the matter for further proceedings and a detailed explanation of its findings.

Workers' CompensationMedical BillsCausal RelationshipAppellate ReviewRemittalPermanent Total DisabilityAdministrative LawEvidentiary RequirementsBoard DecisionsJudicial Review
References
10
Case No. MISSING
Regular Panel Decision

In Re Lowe

This is a Chapter 7 bankruptcy case involving a Trustee's objection to the Debtor's claim of exemption for accrued funds from a General Motors-United Auto Workers profit-sharing plan. The central legal question was whether these funds qualify for exemption under New York's "opt-out" exemption statutes, specifically Debtor and Creditor Law § 282 or CPLR § 5205(c), or as a spendthrift trust under federal bankruptcy law. The Debtor presented six arguments, including claims of express statutory exemption, exclusion from the bankruptcy estate, and a cash exemption, along with arguments based on the de minimis amount and equitable considerations. The Court meticulously analyzed New York's convoluted exemption schema and ultimately rejected each of the Debtor's proposed arguments, emphasizing that exemptions must be statutory and cannot be created by the court. Consequently, the Court sustained the Trustee's objection, ordering the Debtor to turn over the profit-sharing funds to the Trustee.

BankruptcyExemption LawProfit Sharing PlanChapter 7Debtor and Creditor LawSpendthrift TrustERISAStatutory InterpretationTrustee ObjectionNew York Exemption Law
References
8
Case No. MISSING
Regular Panel Decision

In Re Episode USA, Inc.

Episode USA, Inc., a debtor in chapter 11 bankruptcy, guaranteed a non-debtor affiliate's lease. The affiliate defaulted, leading the landlord, L.H. Charney Associates, to file a claim against Episode. Episode objected to the claim, seeking to cap the unsecured portion under § 502(b)(6) of the Bankruptcy Code and expunge the administrative priority claim. The court sustained Episode's objection, ruling that the § 502(b)(6) cap applies to debtor-guarantors and that the administrative priority claim was not justified as Episode received no benefit from the lease. However, the court rejected Episode's argument for a reduction of the unsecured claim based on mitigation, citing New York law.

BankruptcyLease GuaranteeLandlord-Tenant LawClaim ObjectionSection 502(b)(6)Administrative Priority ClaimDebtor-in-PossessionUnsecured ClaimsLease TerminationGuarantor Liability
References
34
Case No. MISSING
Regular Panel Decision

Pereira v. Young (In Re Young)

This memorandum decision from the U.S. Bankruptcy Court for the Eastern District of New York addresses an adversary proceeding where John S. Pereira, the Chapter 7 trustee, sought to deny the debtor, Ginger Young, a discharge in bankruptcy. The Trustee raised objections under three sections of the Bankruptcy Code, alleging the debtor failed to keep adequate records, knowingly withheld information, and could not satisfactorily explain the loss of assets totaling approximately $140,000 from a property sale and IRA/pension withdrawals. Judge Elizabeth S. Stong considered the debtor's defense of being a victim of severe domestic and financial abuse, supported by expert testimony from Laura Boyd, MSW. The court found the debtor's explanation credible and justified her inability to produce complete financial records and account for the asset disposition due to the traumatic circumstances. Consequently, all of the Trustee's objections to the Debtor's discharge were denied.

BankruptcyChapter 7Debtor DischargeTrustee ObjectionsDomestic AbuseFinancial AbuseRecord KeepingAsset DispositionJustificationCredibility
References
46
Case No. Claim Nos. 4754 and 7181
Regular Panel Decision
Feb 20, 2014

In re Residential Capital, LLC

Caren Wilson filed claims (Claim Nos. 4754 and 7181) asserting secured and unsecured claims against Residential Capital, LLC. The ResCap Borrower Claims Trust objected, arguing the claims were barred by res judicata due to a prior dismissal with prejudice of a related federal action, or were improperly amended/late-filed. The Court applied federal res judicata law, finding that Wilson's claims arise from the same nucleus of facts as the previously dismissed Federal Action. Additionally, Claim No. 7181 was deemed either barred by res judicata or late-filed, and both claims failed to meet pleading standards for RICO and fraud. The Court sustained the Trust's objection, expunging both of Wilson's claims, but modified the automatic stay to allow Wilson to challenge the prior dismissal order in the Virginia District Court.

BankruptcyRes JudicataClaim ObjectionExpungementFailure to ProsecuteRule 41(b) DismissalRICOFraudDebtor-CreditorMortgage Securitization
References
45
Case No. ADJ3197445 (OAK 0335140) ADJ4023378 (OAK 0328629)
Regular
Jul 18, 2016

RAMIRO ARREOLA vs. OWENS CORNING, OLD REPUBLIC INSURANCE COMPANY, GALLAGHER BASSETT SERVICES, INC.

The Workers' Compensation Appeals Board granted reconsideration and rescinded an order requiring applicant's attorney to reimburse the defendant $1,400 for an overpayment of fees. The applicant objected, claiming entitlement to a credit for attorney fees incurred in enforcing a future medical award and requested a hearing. The Board found that no evidentiary hearing had occurred and the applicant was entitled to due process, including a hearing on their objection to the reimbursement. Therefore, the matter was returned to the trial level for further proceedings and a new decision.

Workers' Compensation Appeals BoardPetition for ReconsiderationAttorney's FeesOverpaymentLabor Code Section 5710Future Medical AwardLabor Code Section 5814.5Due ProcessEvidentiary HearingRescind Order
References
8
Case No. VNO 537574
Regular
Aug 18, 2008

## CARMEN BAPRAWSKI, vs. ## LOS ANGELES CITY COLLEGE; SOUTHERN CALIFORNIA RISK MANAGEMENT ASSOCIATION,

This case involves applicant Carmen Baprawski's claim for workers' compensation benefits due to stress and harassment sustained during her employment as a counselor. The administrative law judge dismissed the case without prejudice for failure to object to a Notice of Intention to Dismiss. The Workers' Compensation Appeals Board granted reconsideration, rescinding the dismissal order. The Board emphasized the legal policy favoring hearings on the merits and returned the case to the trial level. The WCJ is directed to treat the reconsideration petition as a timely objection and hold an evidentiary hearing on dismissal, considering factors like the applicant's capacity to sit for deposition.

Workers' Compensation Appeals BoardReconsiderationOrder of DismissalApplication for Adjudication of ClaimCumulative InjuryStress and HarassmentNotice of Intention to DismissGood CauseHearing on the MeritsEvidentiary Hearing
References
1
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