Racing to Res Judicata

When two or more lawsuits over the same set of facts are being resolved simultaneously in bankruptcy and state courts, figuring out who has jurisdiction over what can get tricky.  Yesterday, the Tennessee Court of Appeals issued a decision untangling a dispute between business partners that stretched between three different courts, and in doing so provided a helpful roadmap for resolving such disputes in the future. Spivey v. King, No. E2011-01114-COA-R3-CV (Tenn. Ct. App. Feb. 2, 2012)

Read the full post    By Dan Lins    Tags bankruptcy litigation, business litigation, jurisdiction    Comments 0

Round-Up: Insolvency in the News

In case you missed them, here are bankruptcy stories from around the web making headlines this week:

Bankruptcy filings by publicly traded companies fall 17 percent in 2011.

CEO of Pinnacle Airlines in Memphis warns of possible Chapter 11 in light of recent losses.

Ryan’s Steakhouses across Tennessee being boarded up as part of Buffets Inc.’s restructuring plan.

Clarksville medical center finds investor to guarantee $37 million needed to complete reorganization.

Marilyn Monroe estate gets iconic photo rights as part of bankruptcy settlement.

Read the full post    By Dan Lins    Tags insolvency    Comments 0

When is Demand Prior to a Derivative Suit Futile?

In a shareholder derivative action against directors of a corporation, the Tennessee Court of Appeals discussed the standard (under Delaware law) for a plaintiff to be excused from making demand on the company’s board prior to filing suit. The case is In re Healthways, Inc. Derivative Litigation, 2011 WL 882448 (Tenn. Ct. App., March 14, 2011).

Read the full post    By Bob Mendes    Tags business litigation, business organizations    Comments 0

Tennessee AG Opinion: Employers Must Pay Jury Duty Travel Time

In October, the Tennessee Attorney General released an opinion addressing the following question:

Does Tennessee Code Annotated § 22-4-106(b) require an employer to compensate an employee for travel time to and from jury duty when the employee is not compensated for travel as a part of the employee’s usual compensation?

Jury Duty Travel Time, Opinion No. 11-72 (2011). The short answer: yes, employers must provide that compensation. Id.

The pertinent section of the statute provides that, in addition to being given an excused absence from work to serve as a juror, “the employee shall be entitled to the employee’s usual compensation received from such employment.” Tenn. Code Ann. § 22-4-106(b). It goes on to say that “no employer shall be required to compensate an employee for more time than was actually spent serving and traveling to and from jury duty.” Id. (emphasis added). In light of this statutory language, “and the legislative intent to protect workers from the loss of benefits when called to jury service,” the Office of the Attorney General concluded that the statute “is properly construed as providing that travel time to and from jury duty is compensable as part of jury service.” Opinion No, 11-72 at 3. Accordingly, the opinion explains, if an employee has actual jury duty for four hours one day and spends two hours driving to and from the courthouse, he or she would be entitled to six hours of usual compensation under the law. Id.

For a complete version of the opinion, please visit: http://www.tn.gov/attorneygeneral/op/2011/op11-72.pdf.

Read the full post    By Michael Ewing    Tags employment law    Comments 0