In re Baldanza Bakery, Inc.
In re Baldanza Bakery, Inc.
Opinion of the Court
OPINION
On April 20, 1992 the court reserved decision on the debtor’s motion in the above-captioned case for a declaratory judgment that certain collective bargaining agreements terminated before the bankruptcy petition was filed.
This opinion will not recite all of the relevant facts which are set forth in the affidavits of the parties.
The collective bargaining agreement with the Drivers Local (“the Drivers’ Agreement”) had an expiration date of June 4, 1991, but provided that it would continue thereafter until a new agreement is reached, or until the debtor or the Drivers Local terminate the agreement upon sixty days’ written notice, under Article XXII thereof.
In or about June 1990 the Bakers Local sent a Form OMB No. 3-076-0004 “Notice to Mediation Agencies” to the Federal Mediation and Conciliation Service, with a copy to the debtor. On June 26, 1990 the Bakers Local sent the debtor a letter stating in pertinent part that “[i]n accordance with the provisions of the National Labor Relations Act, we hereby submit our sixty (60) day notice of our intentions to reopen our agreement for the purpose of negotiations.”
On or about July 9, 1990 the Drivers Local sent the same form of “Notice to Mediation Agencies” to the Federal Mediation and Conciliation Service and to the debtor.
The affidavit of Dominick Palazzalo, vice president and treasurer of the debtor, states that he intended the Agreements to terminate by their own terms upon their stated expiration dates. However, both Agreements provide that they shall automatically continue thereafter until either the debtor or the union gives written notice of intention to terminate. The debtor never gave such notice, so even if the debtor did intend to terminate the Agreements, it did not effect such terminations.
The debtor argues that the unions effected termination of the Agreements by sending the Notices to Mediation Agencies. However, both unions certify that it was their intention to modify rather than terminate the Agreements. The Notice to Medi
The case of In re Sullivan Motor Delivery, Inc., 56 B.R. 28 (Bankr.E.D.Wis. 1985), on which the debtor relies, is either distinguishable on its facts or wrongly decided, and this court declines to follow it in this case. The debtor has not met its burden of proving that the Agreements terminated prepetition. The court, therefore, denies the debtor’s motion, and determines that the Agreements were in full force and effect when the bankruptcy petition was filed.
The attorneys for the unions are to jointly submit an order under Rule 4 of the Local Rules of Bankruptcy Practice.
. Fed.R.Bankr.P. 7001(9) provides that an adversary proceeding must be filed to obtain a declaratory judgment regarding matters including the extent of the debtor’s interest in property. However, no objection was raised to determining the issues in question by motion, and the Court will relax the requirement of an adversary proceeding under 11 U.S.C. § 105(a) and Fed.R.Bankr.P. 1001.
. Under Fed.R.Bankr.P. 7052(a) findings of fact are ordinarily unnecessary on motions.
Reference
- Full Case Name
- In re BALDANZA BAKERY, INC.
- Cited By
- 1 case
- Status
- Published