In Re American Housing Foundation, Debtor

2010 WL 2371072 (2010)

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Nature Of The Case

This section contains the nature of the case and procedural background.

Facts

An involuntary petition was filed against the American Housing Foundation (D) on April 21, 2009. D filed a voluntary petition under chapter 11 on June 11, 2009, which was subsequently consolidated into the involuntary case on July 17, 2009. P served as the 'Portfolio Manager' for D's operations for approximately four years prior to the filing of the bankruptcy case. As of that time, P was paid $160,000.00 per year; he testified that he accrued three weeks of vacation pay per year. P continued in his position after both the involuntary filing and the consolidation of the voluntary petition with the involuntary petition but was terminated by D on December 11, 2009. D purports to be a nonprofit corporation that was created for the purpose of providing affordable housing for moderate-income families. The housing units, over 13,000, are generally owned by limited liability companies and limited partnerships; AHF is affiliated with these entities as a member, with respect to the limited liability companies, or general partner, with respect to the limited partnerships. P, as with all D 'employees', was actually an employee of Administaff, from whom D leases all its employees. P was paid by Administaff but he contends that Administaff merely serves an 'HR' function. Administaff has a stated vacation policy where employees are entitled to vacation benefits and sets forth how vacation time accrues. The policy does not state that employees are paid accrued vacation pay in the event of termination. P seeks approval of an administrative claim in the amount of $7,539.38 consisting of expenses of $1,898.35 and accrued vacation benefits of $5,641.03.

Issues

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Holding & Decision

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Legal Analysis

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