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§ 502(b)(7)

All. BioEnergy Plus, Inc., In re--All. BioEnergy Plus, Inc. v. Lenaburg

Ruling
Creditor's claims for future base pay and annual bonuses were capped under bankruptcy law.(Bankr. S.D. Fla.)
Issue(s)
Allowance of Claims or Interests; Disallowance; Employee’s Claim for Damages.

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Commercial opinion summary, case decided on May 10, 2019 , LexisNexis #0719-059

In re Texas Wyo. Drilling Inc.

Ruling
President and CEO's claim for compensation for rejection of employment agreement after conversion to chapter 7 was not entitled to administrative expense priority.
Procedural posture

Chapter 7 trustee objected to a proof of claim filed by the former consulting director, president, and chief operating officer for the debtor.

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Commercial opinion summary, case decided on February 04, 2013 , LexisNexis #0213-112

In re Fairpoint Communs. Inc.

Ruling
Age Discrimination in Employment Act claim was subject to cap on damages resulting from claim for termination of employment contract.
Procedural posture

Debtor objected per 11 U.S.C.S. § 502(b)(7) to a $1 million proof of unsecured claim filed by counsel for a former employee who charged that debtor was liable for damages based on a wrongful termination that violated the Age Discrimination in Employment Act (ADEA) and RSA ch. 354- A (New Hampshire). A central issue was whether counsel was properly sanctioned per Bankr. S.D.N.Y. R. 9006-1 for having filed an out of-time response to the objection.

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Commercial opinion summary, case decided on March 17, 2011 , LexisNexis #0411-044

In re Sheehan Mem. Hosp.

Ruling
Claim for termination damages not in excess of contractual rate of annual compensation allowed without limitation.
Procedural posture

An employee filed an administrative claim in the debtor's chapter 11 bankruptcy case for national origin discrimination and for damages arising from the termination of her employment without notice.

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Commercial opinion summary, case decided on October 18, 2007 , LexisNexis #1107-130