September 16, 2015

Nassau Guardian quotes Keith Owens’ declaration on behalf of Strategic Outsourcing in bankruptcy proceeding

2 min

In a July 21, 2015 article, the Nassau Guardian quoted Venable partner Keith Owens’ declaration on behalf of payroll service provider Strategic Outsourcing Incorporated against developers in Baha Mar’s Chapter 11 bankruptcy. The declaration raised concerns of “unsafe work conditions” over the developers’ inability to meet wage requirements for its employees.

"I advised Mr. [Tyson] Lomazow (counsel for Northshore) that unless the debtors immediately funded the minimum pay for the pay periods ending July 10 and July 18, 2015, respectively, and agreed to permit SOI to terminate the service agreement if the debtors fail to pay the full amount of payroll not later than the Tuesday immediately following the Friday upon which payroll becomes due, as set forth in the draft stipulation, SOI could not agree to further delay resolution of this issue,” read Owens’ declaration. “This is particularly the case because the debtors’ inability to fund payroll as required under the service agreement exposes SOI to potential claims and puts SOI’s license at risk.”

The declaration added, “SOI, through counsel, reiterated its concern that if the debtors did not have the ability to fund even the minimum wage, it raised questions about unsafe working conditions, being precluded from obtaining workers’ compensation insurance, violations of applicable law, among other things.”