SUPREME COURT NOTEBOOK

Court rules for workers in bankruptcy case over lost wages

WASHINGTON (AP) — The Supreme Court on Wednesday sided with hundreds of former workers at a New Jersey trucking company who said they were unfairly denied a claim for lost wages after the company filed for bankruptcy protection.

The justices ruled 6-2 that a bankruptcy court should not have approved a plan allowing Jevic Transportation Inc. to settle other legal claims first, leaving nothing for the workers.

The workers said the bankruptcy plan did not follow traditional rules requiring unpaid wages to be paid ahead of other debts. The company said settlements with lower-ranking creditors are sometimes essential to resolving the bankruptcy process.

The company filed for bankruptcy protection in 2008, two years after it was acquired by a private equity firm in a leveraged buyout. About 1,800 ex-workers are seeking lost wages.

Writing for the court, Justice Stephen Breyer said a bankruptcy court does not have the power to deviate from the basic priority under which creditors are paid in bankruptcy cases without seeking consent from the affected parties.

Justice Clarence Thomas dissented, joined by Justice Samuel Alito. Thomas faulted the workers for changing their arguments after the court decided to hear the case. He said the high court should have allowed other lower courts to more thoroughly consider the "novel" issue of bankruptcy law before the justices weighed in.

 

Justices side with leading cheerleading uniform maker

WASHINGTON (AP) — The Supreme Court on Wednesday sided with the leading maker of cheerleading uniforms in a copyright dispute with a smaller rival, ruling that uniform designs can be protected under copyright law.

The justices ruled 6-2 on Wednesday to uphold a lower court ruling in favor of Varsity Brands in its copyright infringement lawsuit against Star Athletica.

Varsity sued its competitor based on Star’s 2010 catalog that used stripes, chevrons and other designs that Varsity claimed as its own.

In his majority opinion, Justice Clarence Thomas said artistic features on clothing deserve protection under copyright law if they can be separated from the article of clothing and would qualify for protection on their own.

The ruling is a win for fashion designers that want to enforce copyrights on the art used on clothing, handbags, home furnishings and other products.

In its Supreme Court appeal, Star argued that the designs on cheerleading uniforms can’t be separated from the uniforms themselves, and that if Varsity has its way, it would have a monopoly on the uniforms.

Justice Stephen Breyer dissented, joined by Justice Anthony Kennedy, saying the design features at issue can’t exist independently from the article of clothing.

The case is Star Athletica v. Varsity Brands, 15-866.