Greyhound Lines, Inc. v. NLRB (In re Eagle Bus Mfg. Co.)

William J. Dyer

Case Conclusion Date:May 14, 1991

Practice Area:Lawsuits / Disputes

Outcome:Defeated NLRB & Greyhound's Union on $200M+ claims

Description:Lead trial counsel for Greyhound Lines, Inc. in bankruptcy court proceedings in Corpus Christi and McAllen to estimate claims for back pay for over 6000 workers, as based on unfair labor practices alleged by the National Labor Relations Board and Amalgamated Council of Greyhound Local Unions. After six weeks of expedited discovery and a two-day summary trial in April 1991 — into which the parties compressed an anticipated seven years of administrative litigation on both liability and damages — the court sliced approximately 85% from the more than $200 million sought by the NLRB and the Union, capping Greyhound’s potential liability at $31¼ million in the event that the NLRB’s general counsel and the Union should ultimately prevail in the ongoing administrative litigation before the NLRB. As a direct result, neither the NLRB nor the Union was able to block confirmation of Greyhound’s plan of reorganization, and Greyhound emerged from Chapter 11 bankruptcy in October 1991. In re Eagle Bus Mfg. Co., 134 B.R. 584 (Bkrtcy. S.D. Tex.1991). The decision was later discussed in more detail in the process of being affirmed on appeal to the federal district court, 158 B.R. 421 (S.D. Tex. 1993).