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Trustee doubts lawsuit's validity Posted: Saturday, Apr 16, 2005 - 10:08:26 am PDT By ELIZABETH CIEPIELA Hagadone News Network
BONNERS FERRY -- The Brown Schools' bankruptcy trustee George Miller says he doubts whether a class-action lawsuit filed Tuesday by former CEDU employees against McCown, De Leeuw & Co. (MDC) is valid since it wasn't filed in Delaware. "You gotta file it in Delaware," Miller said Friday. "If it's not filed in Delaware, we don't have to respond to it.""Any lawsuit against the bankrupt organization ... in my opinion, has to be brought in bankruptcy court." Miller is a tax accountant by profession.
"We don't have anything to do with a bankruptcy," Banks said. "We're not suing the Brown Schools. We're suing MDC and that is our only defendant. I don't see how the bankruptcy court could have any jurisdiction." Officials with the United States Bankruptcy Court in Delaware could not be reached for comment; neither could the federal court in Coeur d' Alene. On Friday, MDC received the court summons. The company has 20 days to respond. MDC did not return calls for comment. Banks maintains MDC is responsible for the abrupt closure of the Brown Schools. "We gathered the facts that we were able to gather, and it sure looked to us like McCown (MDC) had a significant amount of influence at the Brown Schools," Banks said. "It looks like the company made the decision to close those schools without notice." "I think it's a very good case," he added. "When you have a third party controlling an employer and actually ... making management decisions about how the employers are to be operated ... then there is liability on that third party." POST YOUR OPINION
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