By: Jeff Montgomery
Posted: May 12, 2019
Law360
Remnants of bankrupt electric car maker Fisker Automotive kicked up fresh sparks Wednesday, when a Delaware judge said the company and laid-off workers should consider dates for a trial in a dispute over first-in-line payment claims.
U.S. Bankruptcy Judge Kevin Gross made the point after arguments on a class of workers’ motion for summary judgement for their claim to first priority rights to a $1.9 million estate reserve to pay Worker Adjustment and Retraining Notification Act compensation.
“This case has been pending for 5½ years. I realize it has been a contentious process, but I’m hoping to get a trial date before I retire,” said Judge Gross, who recently announced his intent to leave the bench next year.
Timothy A. Miller of Valle Makoff LLP, counsel to Fisker successor Hybrid Tech Holdings LLC, told Judge Gross that Fisker’s operations continued well beyond the 180-day post-layoff maximum allowed for an employee class seeking priority status for WARN payments, ahead of other creditors.
Hybrid and FAH Liquidating Corp., Fisker’s post-confirmation estate company, made the point while arguing against the summary judgement motion filed on behalf of the workers, laid off on April 5, 2013. The employees sought a ruling that Fisker effectively ceased operations by Oct 2, 2013 – within the 180-day window – although the company’s Chapter 11 was delayed until Nov. 22 that year.