Bankruptcy Court Greenlights Union Arbitration Fight

Law360, New York (October 20, 2009, 6:34 PM EDT) -- A federal judge has signed off on an agreement between bankrupt paper product maker Smurfit-Stone Container Corp. and a union, allowing litigation over an employment arbitration award to proceed.

In a stipulated order Judge Brendan Linehan Shannon of the U.S. Bankruptcy Court for the District of Delaware signed Monday, the United Steelworkers and the debtor agreed that the union should be given limited relief from the automatic stay imposed by the bankruptcy court in order to continue litigation over an arbitration award against Smurfit-Stone.

The union...
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