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In a recent decision in the bankruptcy case In re Trump Entertainment Resorts, Inc.[1], the United States Bankruptcy Court for the District of Delaware ruled that the automatic stay in bankruptcy was inapplicable to, and, accordingly, did not bar a labor union from contacting the bankrupt casino hotel’s customers and potential customers and discouraging them from doing business with the casino hotel.  In reaching its decision, the court determined that the federal Norris-LaGuardia Act trumps the stay, which is automatically triggered upon the filing of a bankruptcy case.

This article discusses (i) the automatic stay in bankruptcy; (ii) the Norris-LaGuardia Act; (iii) the court’s decision in the Trump Entertainment Resorts case; and (iv) the key takeaway of that decision. 

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