Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Bankruptcy StrategistKickerFeaturesTopicsCommercial LawLitigationSectionsNewsLJN Newsletters

Collective Bargaining Aftermath

By Catherine Steege and David H. Hixson

At first blush, the recent decision, In re Northwest Airlines Corp., 483 F.3d 160 (2d Cir. 2007), in which the United States Court of Appeals for the Second Circuit held that a federal court may enjoin a strike by employees covered under the Railway Labor Act (the 'RLA') following rejection of their collective bargaining agreement ('CBA'), would appear to be of limited applicability outside of airline bankruptcies. But the Second Circuit's underlying rationale ' that rejection of a CBA under Section 1113 'abrogates' the contract, 'effectively shielding [the debtor] from a charge of breach' ' has broader application to the rights of all employees, even those working in industries not covered by the RLA. Id. at 174. Courts adopting this rationale will likely conclude that rejecting a CBA under Section 1113 does not give rise to employee claims for rejection damages against the debtor.

Indeed, within 15 days of the Second Circuit's ruling, the bankruptcy court presiding over Northwest Airlines' Chapter 11 case concluded that it had no choice but to disallow the proof of claim filed by the flight attendants' union on behalf of approximately 7500 flight attendants, holding that if the CBA had not been breached when it was rejected, then the flight attendants could not have any claims. In re Northwest Airlines Corp., 366 B.R. 270, 274-75 (Bankr. S.D.N.Y. 2007). The bankruptcy court left open the possibility that if the flight attendants union ratified a new agreement with the debtor that provided for a claim, the court might reconsider and allow a claim for the flight attendants. Id. at 277.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers Image

There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Transfer Tax Implications on Real Property Leases Image

The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.