Third Circuit Declares Win for Trump (Entertainment, That Is)

    View Author January 2016

    On January 15, 2016, Trump Entertainment was handed a victory by the Third Circuit Court of Appeals, which held that Trump Entertainment could reject the continuing terms and conditions of a collective bargaining agreement (CBA) that had already expired by its terms. This case is a matter of first impression among the courts of appeal and is likely to significantly alter the balance of power between debtor-employers and their unions. The end result of the Trump Entertainment decision may be that more companies with burdensome CBAs choose to file bankruptcy in order to reduce their labor costs.