Rhythm & Hues
Our clients worked for the American visual effects and animation company that received the Academy Award for Best Visual Effects in 1995 for Babe, in 2008 for The Golden Compass, and in 2013 for Life of Pi. Just days before the Oscars, R&H filed for bankruptcy and terminated hundreds of its employees. Many of them staged a protest blocks away during the Awards ceremony, protesting working conditions. The spokesperson for “Life of Pi” was drowned out and “played off” the stage with the “Jaws” music, when he began to talking about the bankruptcy.
Jack and René settled the WARN Act claims of the employees in the bankruptcy court for nearly one million dollars.
Rivet
Our clients created financial reporting software for companies filing their reports with government agencies. The Colorado venture was unable to continue and terminated employees without notice, and Jack and René settled the WARN Act class action.
TWL Corporation
This Dallas, Texas company produced workplace training courses. Our hundred and thirty clients were terminated without notice and the company filed for Chapter 7 liquidation. The outlook for any recovery was poor and the bankruptcy judge dismissed the class action in part to spare the expense of litigation. Jack and René took the case to the Fifth Circuit Court of Appeals, which reversed the lower courts’ ruling and reinstated the case. The decision is a significant one in corporate restructuring.
Upon return to the bankruptcy court, the employees not only received certified class status, Jack and René argued that the estate had to route several hundred thousand dollars away from other creditors to them, under the Bankruptcy Code, to which the Court agreed. Our clients were the only creditors to receive a distribution. They were paid WARN back pay.