AMR effort to terminate retiree benefits blocked

04/18/2014 // West Palm Beach, Florida, US // JusticeNewsFlash // Justice News Flash // (press release)

New York – AMR Corp, the former parent company of American Airlines, lost its bid to terminate the health and welfare benefits of retirees on Friday. As reported by Reuters, a 2012 motion made by the company for a ruling holding that benefits of approximately 47,000 retirees could be unilaterally changed was rejected by U.S. Bankruptcy Judge Sean Lane in New York.

As noted in the report Lane decided in favor of AMR for some employees; however the ruling was a hindrance to the company’s effort to shift program costs to the retirees.

Lane is quoted as stating in his decision, “The relevant documents contain language reasonably susceptible to interpretation as a promise to vest benefits and lack language categorically reserving the plaintiffs’ right to terminate their contributions to the retiree benefits.”

Casey Norton, a spokesman for American Airlines, is quoted by Reuters as stating, “American will review his ruling and consider next steps related to the retiree health and life insurance benefits… We always remain open to productive discussions to finally resolve this matter.”

This report is provided by Justice News Flash – New York Legal News

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