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The Delaware Bankruptcy Insider is a premier blog designed to bring its readers a comprehensive analysis of the latest Delaware corporate bankruptcy news and rulings. Brought to you by Ashby & Geddes, P.A.
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Recent Posts
- Getting Noticed in the Digital Age: Delaware Bankruptcy Court Finds Email Notice Satisfies Due Process but Not Rule 2002
- Third Circuit Reversal Paves the Way For NextEra to Potentially Recover Administrative Expenses Incurred in Connection With Failed Merger
- Delaware District Court Disagrees with Bankruptcy Court’s Ruling and Holds That Committee’s Challenge Rights Survived Entry of the Sale Order and Consummation of Sale
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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.