AMR Can't Terminate Retiree Benefits, Judge Says

Law360, New York (April 18, 2014, 2:28 PM EDT) -- The bankruptcy judge who oversaw AMR Corp.’s Chapter 11 case on Friday rejected the airline’s contention that it has the right to dump the cost of health benefits onto retirees themselves, saying the benefits are protected in relevant documents.

In a 49-page decision mostly shutting down the American Airlines Inc. parent’s bid for summary judgment on whether the pension benefits are vested, U.S. Bankruptcy Judge Sean H. Lane found that the various contracts the two sides signed years ago, despite modifications to some during the bankruptcy process, maintain the retirees' rights to health and welfare benefits.

“With limited exceptions, the court...

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New York Southern

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November 29, 2011

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