Beckley Coal Mining Co. v. United Mine Workers of America

98 B.R. 690, 1988 U.S. Dist. LEXIS 16105, 1989 WL 38305
CourtDistrict Court, D. Delaware
DecidedJanuary 11, 1988
DocketCiv. A. 87-672 LON
StatusPublished
Cited by6 cases

This text of 98 B.R. 690 (Beckley Coal Mining Co. v. United Mine Workers of America) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beckley Coal Mining Co. v. United Mine Workers of America, 98 B.R. 690, 1988 U.S. Dist. LEXIS 16105, 1989 WL 38305 (D. Del. 1988).

Opinion

OPINION

LONGOBARDI, District Judge.

On November 20, 1987, Beckley Coal Mining Company (“Beckley”) filed a petition for reorganization under Chapter 11 of the Bankruptcy Code (“the Petition”). On December 16, 1987, Beckley filed an application for interim relief from its obligations under the National Bituminous Coal Agreement of 1984 (“the Wage Agreement”). In particular, it requested an order allowing it to cease providing certain benefits to laid off employees who are covered by the Wage Agreement. After a hearing, the application was denied and, on December 28, 1987, Beckley filed a Notice of Appeal and an Application for Leave to Appeal under 28 U.S.C. § 158(a). By an Order dated December 29, 1987, this Court ordered expedited briefing on the issues and, thereafter, on January 7, 1988, heard oral argument.

Beckley’s appeal from the denial of its application under 11 U.S.C. § 1113(e) 1 presents the issue of when an application for interim relief is appropriate. The Bankruptcy Judge concluded the application had to be denied because “there is no application for rejection on file, hence, there is no basis for interim relief. If the requested relief were granted absent an application for rejection, the provisions of subsection (b)(1) and (2) would be negated.” Transcript (“Tr.”) at 95-96. Further, the Bankruptcy Judge decided that “The Court on an application for interim relief must find compliance with the standards set *692 forth in subsection (c). This has not occurred.” Tr. at 95 [81 B.R. 6 at 7].

Beckley contends that this Court has jurisdiction to hear this interlocutory appeal and that the Bankruptcy Judge was in error when she concluded (1) that an application for interim relief under subsection (e) may not be granted in the absence of an application for rejection of the collective bargaining agreement as provided under subsection (b)(1) and (2); and (2) that compliance with the standards under subsection (c) is required before relief under subsection (e) is granted.

On the other hand, Appellee, United Mine Workers of America (“UMWA”) contends (1) this Court is without a basis to entertain the appeal and (2) the Bankruptcy Judge was correct when she concluded Beckley had to engage in good faith bargaining prior to seeking interim relief under subsection (e) regardless of whether Beckley had made a prior application for rejection. (It was apparent from Appellee’s brief that it was conceding the issue that an application for interim relief need not be preceded by an application for rejection. At oral argument UMWA confirmed that was the case.) In other words, as to its second contention as now framed, UMWA contends that interim relief may not be sought without first engaging in “good-faith bargaining.”

THE APPEAL

Title 28, section 158(a) of the United States Code does not provide any guidelines for determining whether or not to grant an interlocutory appeal. In other cases involving interlocutory appeals from the Bankruptcy Court, this Court has held that it will apply by analogy the criteria set forth in 28 U.S.C. § 1292(b). First American Bank of New York v. Century Glove, 64 B.R. 958, 961 (D.Del.1986); 2 see also In re American Reserve Corp., 71 B.R. 303 (N.D.Ill.1987); In re United Press Intern., Inc., 60 B.R. 265 (Bkrtcy.D.Colo.1986); In re Johns-Manville, 45 B.R. 833 (S.D.N.Y. 1984); Matter of Caribbean Tubular Corp., 44 B.R. 283 (D.C.P.R.1984); United States v. Sayres, 43 B.R. 437 (W.D.N.Y.1984); Bank of America, N.T. & S.A. v. World of English, 23 B.R. 1015 (N.D.Ga.1982). Under section 1292(b), the appellant must establish that “ ‘exceptional circumstances justify a departure from the basic policy of postponing review until after the entry of final judgment.’ ” Id. quoting Coopers & Lybrand v. Livesay, 437 U.S. 463, 475, 98 S.Ct. 2454, 2461, 57 L.Ed.2d 351 (1978). It also provides that an interlocutory appeal shall be granted when the order at issue (1) “involves a controlling question of law” upon which there is (2) “substantial ground of difference of opinion” and (3) when “an immediate appeal from the order may materially advance the ultimate termination of the litigation.” 28 U.S.C. § 1292(b); First American Bank of New York, 64 B.R. at 967. The Third Circuit also noted that the court, when considering an interlocutory order, should be concerned with its practical aspects: “the avoidance of harm to a party penden-te lite from a possibly erroneous interlocutory order and the avoidance of possible wasted trial time and litigation expense.” Katz, 496 F.2d at 756; First American Bank of New York, 64 B.R. at 967.

The Third Circuit has decided that a “controlling question of law” includes, at the very least, an order which would be reversible error on final appeal if it were erroneous. Katz v. Carte Blanche Corporation, 496 F.2d 747, 755 (3d Cir.), cert. denied, 419 U.S. 885, 95 S.Ct. 152, 42 L.Ed. 2d 125 (1974); First American Bank of New York, 64 B.R. at 967. Beckley contends that the Bankruptcy Judge applied the improper standards in determining whether Beckley should be granted relief under subsection (e). The Bankruptcy Judge denied Beckley relief because Beck-ley did not file an application for rejection of the collective bargaining agreement and because Beckley did not comply with subsection (c). Tr. at 94-95. 3 If Beckley’s *693 position is correct, then the order below would be erroneous and reversible as a matter of law. Furthermore, if an interlocutory appeal were not granted, then Beck-ley could be harmed pendente lite since it may not be granted needed relief because of the denial of procedural benefits. Thus, Beckley satisfies the first element under section 1292(b).

Beckley next asserts that there is a substantial ground for a difference of opinion. 4 Beckley contends there is no case law which supports the proposition that it must first apply for rejection of the collective bargaining agreement before petitioning for interim relief. Indeed, Beckley contends that other courts have granted interim relief without requiring that the debtor in possession file an application for rejection. Beckley also contends that requiring a debtor seeking interim relief under subsection (e) to comply with subsection (c) is contrary to the plain language of the statute.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re Allied Holdings, Inc.
376 B.R. 351 (N.D. Georgia, 2007)
Dal-Tile Intl., Inc. v. Color Tile, Inc.
203 B.R. 554 (D. Delaware, 1996)
In Re United Press International, Inc.
134 B.R. 507 (S.D. New York, 1991)
In Re Cedar Rapids Meats, Inc.
117 B.R. 448 (N.D. Iowa, 1990)
In Re Delaware & Hudson Railway Co.
96 B.R. 469 (D. Delaware, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
98 B.R. 690, 1988 U.S. Dist. LEXIS 16105, 1989 WL 38305, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beckley-coal-mining-co-v-united-mine-workers-of-america-ded-1988.