The Supreme Court Press “Petition of the Month”TM for January 2015 is Robert H. Schuller and Robert Harold Inc. v. Karen Naylor and Crystal Cathedral Ministries
, Supreme Court Dkt. No. 14-945, a case arising out of the Ninth Circuit Court of Appeals. The petition was filed by attorneys Becky James and Jessica Rosen of the firm James & Stewart,, located in Pacific Palisades, California.
- Section 502, subsection (b)(7) of title 11 of the United States Codes instructs bankruptcy courts to limit a “claim of an employee for damages resulting from the termination of an employment contract” to the amount of compensation provided under the contract for one year. Does this one-year cap apply to limit a claim of a retiree for payment of unpaid vested retirement benefits, where the retiree has already done the work and earned the benefits?
- Do general agency law principles apply in interpreting the terms “employee” and “employment contract” in 11 U.S.C. § 502(b)(7), and if so, can those principles be stretched to include within “employment” a situation where the purported “employer” has no control over whether or how any work is performed and the purported “employee” retains complete discretion over whether to provide any services at all?
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