Wood Chip Co. Dodges Severance Suit After Facility Fire

By Adam Lidgett (March 27, 2019, 3:24 PM EDT) -- A North Carolina federal judge on Tuesday tossed a suit claiming a wood chip manufacturer violated the Employee Retirement Income Security Act by refusing to pay severance benefits to former employees who lost their jobs after their facility was destroyed in a fire.

U.S. District Judge Louise W. Flanagan dismissed the suit against Canal Wood LLC and others from a group of former workers who had been employed in a wood-chipping mill in Wilson County, North Carolina, but did so without prejudice, leaving the door open for an amended complaint to be filed within 21 days.  

She noted that a severance...

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