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union damages
See Section 1114 -- very long and interesting. See Section 1113 if
rejecting.
Giovanni Orantes, Esq.
Orantes Law Firm, P.C.
3435 Wilshire Blvd. Suite 1980
Los Angeles, CA 90010
Tel: (213) 389-4362
Fax: (877) 789-5776
e-mail: go@gobklaw.com
website: www.gobklaw.com
See Section 1114 -- very long and interesting. See Section 1113 if rejecting.-- Giovanni Orantes, Esq. Orantes Law Firm, P.C.3435 Wilshire Blvd. Suite 1980Los Angeles, CA 90010Tel: (213) 389-4362
Fax: (877) 789-5776e-mail: go@gobklaw.comwebsite: www.gobklaw.com
The post was migrated from Yahoo.
It is the Debtors contribution to union benefits and they were not withheld
from the paychecks.
I figured it out this morning what they are claiming. Because the Debtor is
subject to a collective bargaining agreement for the jobs, I believe the
union is arguing that under Section 365(b)(1), the debtor must cure the
defaults and that the entire claim is subject to priority. I have to
research this issue.
The post was migrated from Yahoo.
There is case law that allows you to pay post-petition arrearages through
the plan regardless. I don't recall the name right now nor have time to
look up the name of the case you can cite or Shepardize to get other
authority, but I believe it's a North Carolina case and O. Max Gardner was
the attorney and he has a little snippet about it in one of his websites.
I've successfully cited it in the past.
On Tue, Dec 13, 2011 at 7:33 PM, Stella Havkin wrote:
> **
>
>
> These are not wages. The wages were paid. They are benefits that the
> debtor was supposed to pay the union because it is a public works project.
> The attorney for the creditor, which is the trust division of the union,
> is claiming that because these benefits are some sort of trust fund under
> the collective bargaining agreement between the debtor and the union, they
> are priority. I believe that the liquidated damages, interest and audit
> fees are not priority. However, the actual benefits which accrued
> within 5 months of the filing maybe. ****
>
> ** **
>
> I agree that they cannot dictate the length of the plan. However,
> unfortunately, the debtor did not pay the post-petition benefits for the
> past two months, they are in the drivers seat on those. They will not
> agree to have those paid through plan. ****
>
> ** **
>
> *From:* cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] *On Behalf
> Of *Steven B. Lever
> *Sent:* Tuesday, December 13, 2011 6:26 PM
> *To:* cdcbaa@yahoogroups.com
> *Subject:* RE: [cdcbaa] union damages****
>
> ** **
>
> ****
>
> Stella;****
>
> ****
>
> I dont see what the unions preference of being paid in 12 months has to
> do with anything. They get paid over the life of the plan or as you write
> the plan.****
>
> ****
>
> 11 U.S.C. 507 states what is priority debt, and I believe wages etc.
> have a dollar limitation on them (10,000 under (a)(4) and it could be a lot
> more under (a)(5) for benefits accrued within 180 days etc., but we don> have the facts to know that). I could well be missing something on that,
> and would like to know the basis of the priority.****
>
> ****
>
> Steve Lever ****
>
> ****
>
> ****
>
> ****
>
> *From:* cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] *On Behalf
> Of *Stella
> *Sent:* Tuesday, December 13, 2011 4:10 PM
> *To:* cdcbaa@yahoogroups.com
> *Subject:* [cdcbaa] union damages****
>
> ****
>
> ****
>
> I filed a chapter 13 case for a subcontractor. The case is not confirmed
> yet. We just got a letter from a union which conducted an audit of benefits
> owed to it that my debtor did not pay pre-petition because he got in
> trouble on a public works job which he underbid. They are asserting
> liquidated damages, interest and audit fees which equal to approximately
> 1/4 of the debt. I know that it is a priority claim but can I get rid of
> any it or does he have to pay it in full through the plan? Also, the union
> wants it paid within 12 months rather than 5 years. Any help would be
> appreciated. ****
> ------------------------------
>
> No virus found in this message.
> Checked by AVG - www.avg.com
> Version: 10.0.1415 / Virus Database: 2102/4078 - Release Date: 12/13/11***
> *
>
> ****
>
>
>
Giovanni Orantes, Esq.
Orantes Law Firm, P.C.
3435 Wilshire Blvd. Suite 1980
Los Angeles, CA 90010
Tel: (213) 389-4362
Fax: (877) 789-5776
e-mail: go@gobklaw.com
website: www.gobklaw.com
There is case law that allows you to pay post-petition arrearages through the plan regardless. I don't recall the name right now nor have time to look up the name of the case you can cite or Shepardize to get other authority, but I believe it's a North Carolina case and O. Max Gardner was the attorney and he has a little snippet about it in one of his websites.On Tue, Dec 13, 2011 at 7:33 PM, Stella Havkin <havkinlaw@earthlink.net> wrote:
These are not wages. The wages were paid. They are benefits that the debtor was supposed to pay the union because it is a public works project. The attorney for the creditor, which is the trust division of the union, is claiming that because these benefits are some sort of trust fund under the collective bargaining agreement between the debtor and the union, they are priority. I believe that the liquidated damages, interest and audit fees are not priority. However, the actual benefits which accrued within 5 months of the filing maybe.
I agree that they cannot dictate the length of the plan. However, unfortunately, the debtor did not pay the post-petition benefits for the past two months, they are in the drivers seat on those. They will not agree to have those paid through plan.
From: cdcbaa@yahoogroups.com [mailto:
The post was migrated from Yahoo.
These are not wages. The wages were paid. They are benefits that the
debtor was supposed to pay the union because it is a public works project.
The attorney for the creditor, which is the trust division of the union, is
claiming that because these benefits are some sort of trust fund under the
collective bargaining agreement between the debtor and the union, they are
priority. I believe that the liquidated damages, interest and audit fees
are not priority. However, the actual benefits which accrued within 5
months of the filing maybe.
I agree that they cannot dictate the length of the plan. However,
unfortunately, the debtor did not pay the post-petition benefits for the
past two months, they are in the drivers seat on those. They will not
agree to have those paid through plan.
Steven B. Lever
Sent: Tuesday, December 13, 2011 6:26 PM
To: cdcbaa@yahoogroups.com
Subject: RE: [cdcbaa] union damages
Stella;
I dont see what the unions preference of being paid in 12 months has to do
with anything. They get paid over the life of the plan or as you write the
plan.
11 U.S.C. 507 states what is priority debt, and I believe wages etc. have
a dollar limitation on them (10,000 under (a)(4) and it could be a lot more
under (a)(5) for benefits accrued within 180 days etc., but we dont have
the facts to know that). I could well be missing something on that, and
would like to know the basis of the priority.
Steve Lever
Stella
Sent: Tuesday, December 13, 2011 4:10 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] union damages
I filed a chapter 13 case for a subcontractor. The case is not confirmed
yet. We just got a letter from a union which conducted an audit of benefits
owed to it that my debtor did not pay pre-petition because he got in trouble
on a public works job which he underbid. They are asserting liquidated
damages, interest and audit fees which equal to approximately 1/4 of the
debt. I know that it is a priority claim but can I get rid of any it or does
he have to pay it in full through the plan? Also, the union wants it paid
within 12 months rather than 5 years. Any help would be appreciated.
_____
No virus found in this message.
Checked by AVG - www.avg.com
Version: 10.0.1415 / Virus Database: 2102/4078 - Release Date: 12/13/11
The post was migrated from Yahoo.
Stella;
I don't see what the union's preference of being paid in 12 months has to do with anything. They get paid over the life of the plan or as you write the plan.
11 U.S.C. 507 states what is priority debt, and I believe wages etc. have a dollar limitation on them (10,000 under (a)(4) and it could be a lot more under (a)(5) for benefits accrued within 180 days etc., but we don't have the facts to know that). I could well be missing something on that, and would like to know the basis of the priority.
Steve Lever
The post was migrated from Yahoo.
I filed a chapter 13 case for a subcontractor. The case is not confirmed yet. We just got a letter from a union which conducted an audit of benefits owed to it that my debtor did not pay pre-petition because he got in trouble on a public works job which he underbid. They are asserting liquidated damages, interest and audit fees which equal to approximately 1/4 of the debt. I know that it is a priority claim but can I get rid of any it or does he have to pay it in full through the plan? Also, the union wants it paid within 12 months rather than 5 years. Any help would be appreciated.
The post was migrated from Yahoo.