Pro Bono Victory Nets Plaintiffs More than $150,000 in Unpaid Wages

In a long-running lawsuit that began in 2011, Pillsbury represented 15 former employees of Millennium Daycare who were not paid wages by their employer, both before and after the company filed for chapter 11 bankruptcy protection. The lawsuit produced three separate decisions, all in favor of the employees.

First, the Massachusetts Bankruptcy Court ruled on partial summary judgment that it had the power not only to determine whether the employees’ claims were excepted from discharge in the employer’s bankruptcy, but also to determine the amount of the claim under the Massachusetts Wage Act. Second, the Massachusetts Bankruptcy Court found the daycare center’s former owner and president personally liable for treble damages based on the amount of the plaintiffs’ unpaid wages, plus attorneys’ costs and fees. Under the Massachusetts Wage Act, a company’s chief officers can be held personally liable for unpaid wages and the costs associated with recovering them.

Finally, after a five-day trial that concluded in July 2015, the court issued its final ruling earlier this month, finding that the daycare’s former owner had knowingly made false representations and hidden assets. Based on these findings, and others, the court denied the debtor a discharge of any of her debts, including the plaintiffs’ unpaid wages.

“The debtor’s claims of innocent mistake and naiveté ring hollow. [Her] undisputed pattern of conduct was compelling evidence of her intentions,” the court wrote in its decision.

The Pillsbury team advising on this pro bono matter consisted of Insolvency & Restructuring partners Andrew Troop and Christopher Mirick, counsel David Forsh and associate Dina Yavich.