The loewen group case analysis

The Loewen Group, Inc. The other reason to reject the offer by Loewen was the high rivalry between the two companies. For the following reasons, the company therefore rejected all the bids of the counter party in order to secure itself.

The loewen group case analysis

United States District Court, N. Attorney s appearing for the Case Kevin E. Patrick Joseph Fanning, Kathryn M. Among other things, plaintiff Loewen Group International, Inc.

Loewen is currently suing defendant William J. Haberichter "Haberichter" for breaching an employment agreement that included a covenant not to compete. Presently before us is Haberichter's converted motion for summary judgment. Consequently, it is not unusual for buyers to include, as a condition of sale, that certain key employees of the seller remain with the business for at least a transitional period.

Similarly, sellers generally agree not to compete with their former business, either directly or indirectly, within a reasonable radius and for a reasonable period of time. If Haberichter did not wish to be bound by such an agreement, he could decline. However, if he chose to avail himself of an employment agreement, the Agreement stipulated that the employment contract would contain a covenant not to compete.

According to Loewen, barely had the ink dried on the employment agreement before Haberichter began making plans to set up a competing funeral home.

The loewen group case analysis

Finally, in November,Haberichter told Loewen that he was planning to open a competing funeral home in April,and that he had been working on the project for several months. Loewen did not permit Haberichter to "resign," but has sued its former employee for breach of the employment agreement Count Ibreach of the covenant not to compete Count IIbreach of fiduciary duty Count IIIand for injunctive relief Count IV.

Discussion As discussed above, we converted Haberichter's motion to a motion for summary judgment in order to address legal issues stemming from Haberichter's union status.

Although Loewen was given an opportunity to challenge Haberichter's union membership, it proffered no evidence suggesting that the defendant, in fact, was not a member of the Funeral Directors and Embalmers Union Local No. Accordingly, we proceed to address the merits of Haberichter's motion.

In an effort to ensure uniformity of adjudication, the Supreme Court has ruled that "if the resolution of a state-law claim depends upon the meaning of a collective-bargaining agreement," the state-law claim is preempted.

See also Allis-Chalmers Corp. Texas Gas and Transmission Corp. Here, the parties disagree about whether resolution of Counts I breach of the employment contractII breach of the covenant not to competeand III breach of fiduciary duty will require this Court to interpret the collective bargaining agreement.

Because Loewen is suing Haberichter based on an independent employment contract, rather than on the collective bargaining agreement itself, Loewen maintains that Counts I, II, and III do not, and logically will not, require any interpretation of the collective bargaining agreement. Haberichter, on the other hand, contends that the collective bargaining agreement is inescapably implicated here, because the employment agreement contains terms that conflict with the collective bargaining agreement, imposing on Haberichter terms that are more onerous than those contained in the union agreement.

Both positions have merit. There is no question that a plaintiff may pursue state law claims in connection with an individual employment contract, despite the fact that the relationship is also covered by a collective bargaining agreement, as long as the complaint is not "substantially dependent" upon interpretation of the collective bargaining agreement.

See also Lingle, U. However, courts have regularly found preemption where provisions in an independent contract are inconsistent with in a less favorable manner than a term of the collective bargaining agreement. United Air Lines, Inc.

Accordingly, there is some threshold burden on a court being asked to enforce an individual employment contract to examine the related collective bargaining agreement to determine whether the contract conflicts with the agreement. As the Ninth Circuit has aptly observed: If [an examination of the collective bargaining agreement's terms] were [an interpretation], the section preemption doctrine would swallow the rule that employees covered by collective bargaining agreements are entitled "to assert legal rights independent of that agreement, including state-law contract rights, so long as the contract relied upon is not a collective bargaining agreement.

This is not to say that perusal of a collective bargaining agreement will never result in preemption. Where a conflicting or potentially conflicting provision is uncovered, preemption may well be required, since assessment of whether the collective bargaining agreement is actually inconsistent with the contract will necessary involve the court in interpreting the agreement.

Count I Here, Haberichter, albeit belatedly, identifies several provisions of the collective bargaining agreement that potentially conflict with the individual employment contract before us.

First, Haberichter argues that he was fired for cause, and points out that the collective bargaining agreement covers discharge for cause, thereby creating a conflict.

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Indeed, the collective bargaining agreement states that "[a]n employer member shall not discharge any employee without just cause," but fails to limit the definition of "cause. Although "cause" is more specifically defined in the employment contract, it is unclear whether the superficially more narrow definition of "cause" in the employment agreement restricts or expands the termination provision in the collective bargaining agreement.

That is, while the collective bargaining agreement on its face allows for termination for "cause," it remains unclear whether "cause" includes competition. Determination of whether the two agreements conflict in a manner more restrictive of Haberichter's rights requires interpretation of the collective bargaining agreement.

We therefore grant Haberichter summary judgment on Count I. Count II Haberichter further argues that he should be awarded summary judgment on Count II because the covenant not to compete is clearly inconsistent with the collective bargaining agreement.

Haberichter bases this claim on the fact that the collective bargaining agreement specifically states that "employees may perform jobs the same as or substantially similar to those covered by this agreement for employers who have a substantially similar agreement with the union.

According to Haberichter, because the collective bargaining agreement permits employees to work for competitors, the covenant not to compete more narrowly confines his rights.Business case study of loewen group inc.

1. Shanto-Mariam University of Creative Technology Project Management & Appraisal Presentation on: Business Case: Loewen Group Inc.


Group: 05 Sohan Bepary, Mashudul Hasan Chowdhury, Martein Joy Sikder, Muntasir Bin Mostafa, Pavel Karapiat. Case Name: United States v.

The Loewen Group Inc. and Loewen Group International.

Case Solutions and Analysis United States District Court, N. Attorney s appearing for the Case Frank R.
Current Opportunities The interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in Canada.
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Loewen Group Case Study - Research Paper My father died recently also, and I lhad to arrange the service. You are right about the local monopoly, even here in Singapore more like oligopoly.
Regulatory Filings The Bankruptcy of The Loewen Group: The information that follows describes the filing and provides some background on the company.

Case Type: Civil Non-Merger. Case Violation: Failure to File Hart-Scott-Rodino. Market: FUNERAL HOMES AND CEMETERIES.

Industry Code: Economic Analysis Group. . This report provides a qualitative analysis of the Loewen case study, starting from the excessive debt policy used in its expansion and ending with huge debt ratios and bankruptcy. The analysis includes the effect of the company’s policy and the financial distress it caused and results of such a financial condition.

The Loewen group. Case Analysis: Loewen 1. Loewen was able to grow between and through pre-need sales, or sales of cemetery plots for future use.


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