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Claimant Not Considered an “Employee” of the Debtor, Denied Administrative Claim for Severance

In re World Health Alternatives, Inc. et al., No. 06-10166 (PJW) (Bankr. D. Del. Jan. 14, 2014)

Despite a claimant’s assertion that he was entitled to an administrative expense claim against debtor World Health Alternatives, Inc. (“World Health“) for severance, the Court found, in this short letter 11 ruling, that the evidence did not support such a claim.  The claimant relied upon an alleged verbal employment agreement with World Health as a basis for his claim.  While the claimant testified that he worked for World Health, the Court found substantial evidence to the contrary, including W-2 statements and a separation agreement.  Accordingly, the Court concluded that the claimant was not an “employee” of World Health, and denied his claim.