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Audio: Listen to the Eclipse Aviation media conference call Wednesday, Feb. 18, regarding the company putting its employees on furlough.

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Employees sue Eclipse over termination

Judge says will OK liquidation

Updated: Wednesday, 04 Mar 2009, 5:32 PM MST
Published : Wednesday, 04 Mar 2009, 12:19 PM MST

ALBUQUERQUE (KRQE) - Two former employees of Eclipse Aviation are suing the company, claiming they were laid off without the notice required by law.

Annette Varela and John J. Dimura filed the lawsuit Tuesday in bankruptcy court in Delaware. They requested the court certify the lawsuit as class-action for other laid-off employees.

Varela worked at the company's Albuquerque headquarters, and Dimura worked at an Albany, N.Y., service facility. Both were laid off when the company stopped operations in February.

Both claim the company terminated their employment without a 60 days' written notice required under the federal Worker Adjustment and Retraining Notification Act, also known as the WARN Act. Dimura also claims the company violated a similar New York state law that requires 90 days' notice.

They claimed the company could have reasonably foreseen the layoffs and closings, but did not provide the warning.

The plaintiffs are asking for back pay and benefits that would have been covered during the 60-days' notice, plus attorneys' fees.

Jack Raisner, he lawyer representing Eclipse workers, on Wednesday called the lawsuit “an uphill battle.”

However he also said there's a chance that when money is raised by the Chapter 7 bankruptcy sale of the company's assets, some money might be left over for the 850 plus workers who are now out of a job.

A judge late Wednesday gave verbal approval to allowing the company to convert its Chapter 11 bankruptcy protection filing to Chapter 7 liquidation.

Eclipse Aviation filed for Chapter 11 in November and announced it was going to be purchased by a European-based company, but financing for the purchase fell through.  Chapter 11 allows a company to hold it creditors at bay while it works out a reorganization plan to continue in business.

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