Some Claims Tossed In Varig Employees' Suit

Law360, New York (June 25, 2007, 12:00 AM EDT) -- A district court judge has partly dismissed a labor union's lawsuit against bankrupt Brazilian airline Varig SA, but refused to toss the company's claims that Brazilian reorganization law absolves it of obligations to pay employees severance, as their contract requires.

Varig did not adequately argue that the collective bargaining agreement it struck with the International Association of Machinists and Aerospace Workers is ambiguous and should be interpreted in arbitration, the judge ruled on Thursday. Varig also failed to convince the court that its Brazilian reorganization plan...
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