By Casey Sullivan
Feb 12 (Reuters) - Approximately 450 former employees and
lawyers of Dewey & LeBoeuf can present their case for a class
action against the defunct New York law firm, a federal
bankruptcy judge in Manhattan ruled on Monday.
Judge Martin Glenn denied a motion to dismiss, filed by the
Dewey estate in December in an effort to end a lawsuit brought
by Vittoria Conn, a worker in the former firm's document
production department.
In the lawsuit, Conn alleged that Dewey failed to adequately
notify her that her job could be terminated. She cited the
Worker Adjustment and Retraining Notification Act (WARN) which
requires employers to give 60 to 90 days notice before mass
layoffs and said that Dewey did not provide such notice and
therefore owed her 60 days of pay.
The lawsuit, filed on May 10, sought class action status on
behalf of 450 similarly situated employees. Dewey filed for
Chapter 11 on May 28.
The Dewey estate sought to have the case dismissed on
grounds that the firm was not an operating business when Conn
was laid off and was not required to give 60 to 90 days notice.
Dewey also contended that Conn could not bring a class
action as part of the firm's bankruptcy proceedings because the
maneuver would put the class members' interests ahead of
creditors.
But Judge Glenn on Monday said that the proposed class
action may proceed as part of a so-called adversary proceeding
in the Dewey bankruptcy. He cited a variety of other instances
where courts, including the federal bankruptcy court in
Manhattan, allowed WARN Act claims to proceed during a
bankruptcy case, often as class actions.
Glenn, however, did not rule on the merits of the class
action.
"(Dewey) argues that it was no longer operating in an
ordinary business sense when it laid off its employees," he
said. "Such issues of fact cannot be resolved on a motion to
dismiss."
A hearing is scheduled for March 28 when Glenn is expected
to hear arguments from Dewey and Conn about whether the case
should receive class action status.
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