In today's uncertain economy, companies are filing for Chapter 11 bankruptcy protection everyday. As such, those currently employed by, or contemplating employment with, a struggling company would be wise to consider the following question: how will the severance pay provisions in your employment contract be treated in the event you are terminated before or after your employer files for Chapter 11 bankruptcy protection?
Baseball fans in Ohio and across the country may be on the edge of their seats, but not because of action on the field. The source of anxiousness may stem from the fact that the Dodgers could potentially be sold, but the decision is still on hold until a resolution is reached in the team's bankruptcy filing. Right now the owner of the team, Frank McCourt, is in the middle of a costly divorce and the ultimate trophy and bargaining chip is the Dodgers. Frank McCourt wants full ownership, but his ex-wife claims she deserves part of the team.
The case of Johnny Lee, Sr. v. University Hospitals Health System, Inc. (N.D. Ohio March 27, 2009) Case NO. 1:07CV3555 exemplifies risks some people take when they file a discrimination lawsuit during their bankruptcy proceedings. An individual could potentially face monetary sanctions and a dismissal of his lawsuit if he fails to notify the bankruptcy court and the assigned trustee of his pending charge.