Russell v. Allied Textile Co. (In re Carleton Woolen Mills)

Memorandum of Decision

JAMES B. HAINES, JR., Chief Judge.

This matter is before me on remand from the district court for a determination whether application of the Maine Severance Pay Statute to a 1998 collective bargaining agreement between the plaintiffs and their employer, Carleton Woolen Mills, Inc. (“Carleton”), results in an unconstitutional impairment of contract.

Background

Plaintiffs filed their complaint in state court in August 2000. The defendant, Allied Textile Companies, PLC (“Allied”), invoking federal jurisdiction as a consequence of Carleton’s bankruptcy filing, removed the…