Home

Bankruptcy Court Refuses to Dismiss Proposed Class Action Suit by Former Dewey Employees
Download PDF

On Monday, Judge Glenn at the federal bankruptcy court in Manhattan, denied the motion of the Dewey estate to dismiss a proposed class action seeking to represent about 450 former employees of the law firm.

While the lawsuit by Victoria Conn, a former employee of the law firm’s document production department alleged that she and 450 similarly situated employees had lost their jobs without due notice under the WARN Act, Dewey argued it was not an “operating business” at the time of the layoffs.

Dewey’s stance was that only businesses that fit the description of “operating businesses” under the WARN Act, were bound by the mandatory notification periods to provide due warning to employees before layoffs.

  
What
Where


However, Judge Glenn said the point raised by Dewey was significant, and could not be decided at a summary judgment proceeding.

While Conn alleged that Dewey owed her and other employees full pay for 60 days, the Dewey estate argued that allowing such a case to proceed would put the interests of the class member’s ahead of the creditors.

Judge Glenn held that the proposed class action can proceed as an adversary proceeding in the Dewey bankruptcy, since there were numerous instances where WARN Act claims were allowed to proceed during a bankruptcy case, and often as class actions. He also cited precedents of the federal bankruptcy court in Manhattan where such action had been allowed.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




However, Glenn did not rule on the merits and said “(Dewey) argues that it was no longer operating in an ordinary business sense when it laid off its employees … such issues of fact cannot be resolved on a motion to dismiss.”

A next hearing has been scheduled for March 28 to hear arguments from both sides on the class action status of the matter.





 

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Junior Commercial Litigation Attorney with products liability experience

USA-AZ-Phoenix

Phoenix office of our client seeks junior commercial litigation attorney with 1-3 years of experienc...

Apply Now

Employment Defense Attorney with 5+ years of litigation experience

USA-CA-Los Angeles

Los Angeles office of our client seeks employment defense attorney with 5+ years of litigation exper...

Apply Now

IP Patent Attorney with 2-5 years of computer engineering experience

USA-WI-Milwaukee

Milwaukee office of our client seeks intellectual property patent attorney with 2-5 years of experie...

Apply Now

Labor and Employment Attorney with 3-4 years of litigation experience

USA-CA-Los Angeles

Los Angeles office of our client seeks labor and employment attorney with 3-4 years of litigation ex...

Apply Now

RELEVANT JOBS

Legal Secretary

USA-FL-Fort Lauderdale

Prestigious and long established boutique law firm downtown Fort Lauderdale seeks an experienced civ...

Apply now

BUSINESS IMMIGRATION PARALEGAL

USA-CA-Los Angeles

Under the supervision of lead attorneys, the firm is seeking a paralegal who will be responsible for...

Apply now

BUSINESS IMMIGRATION ATTORNEY MID-LEVEL OR SENIOR

USA-CA-Los Angeles

The firm is seeking a business immigration attorney who will work closely with clients on business i...

Apply now

Document Review Attorney

USA-PA-Philadelphia

Update Legal is currently seeking PA admitted Attorneys for an ediscovery document review. No experi...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top