Judge Rules For Lawyer Fired For Following Rules

August 22, 2005 (PLANSPONSOR.com) - Judge Carmen Lopez of the Superior Court of New Haven, Connecticut has ruled that a lawyer can not be fired for trying to follow the Rules of Professional Conduct, saying that doing so is an "important public policy" exception to the employment-at-will doctrine, The Connecticut Law Tribune reports.

“Because the legal profession is self-regulated and relies upon its members to police itself, no lawyer’s employment should be conditioned upon turning a blind eye to violations of the Rules which are applicable to all lawyers,” Lopez wrote, according to The Law Tribune.

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Associate Bruce Matzkin of the Guilford, Connecticut law firm ofDelaney, Zemetis, Donahue, Durham & Noonan was fired after seeking permission to report to bar authorities that a trial opponent had called witnesses he had subpoenaed and told them they didn’t need to come to court. Matzkin felt the act was witness tampering and he had a duty to report the violation under Rule 8.3(a).

But, Matzkin claims a partner told him, “We do not grieve other lawyers.”

The firm argued with the judge’s ruling, saying that the ethics rule “does not rise to the level of ‘an important public policy'” that would warrant making an exception to employers’ basic right to fire an employee without any grounds, the Law Tribune reports.

Lopez concluded in the ruling that firing a lawyer for following the self-policing requirement of the Rules of Professional Conduct “would compromise the autonomy of the profession.”

PBGC Assumes $286M In Pension Liability from Westpoint Stevens

August 19, 2005 (PLANSPONSOR.com) - The list of ailing pension plans seeking the shelter of the nation's private-sector pension insurer continued apace Friday.

The Pension Benefit Guaranty Corporation (PBGC) said it was taking over responsibility for the pension plans covering 32,500 hourly and salaried workers of Westpoint Stevens Corp, a bankruptWest Point, Georgia textile manufacturer. According to  the PBGC statement , the plans were just 46% funded.  The agency said it would assume liability for $286 million of the company’s $306 million pension shortage.   The PBGC said the plans terminated August 8 and that it had formally taken them over on Thursday.
 

Westpoint Stevens filed for Chapter 11 bankruptcy protection on June 1, 2003, and its operating assets were sold to a group led by financier Carl Icahn in a sale that closed on August 8, 2005.  Under the terms of the sale, the asset purchaser will not assume the underfunded pension plans.

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Within the next several weeks, the PBGC will send trusteeship notification letters to all Westpoint Stevens pension plan participants. Workers and retirees with questions may consult the PBGC Web site,  www.pbgc.gov/plans or call toll-free at 1-800-400-7242. For TTY/TDD users, call the federal relay service toll-free at 1-800-877-8339 and ask for 800-400-7242.

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