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Texas Union Files for Bankruptcy After Losing $7.8M Lawsuit

Image: Texas Union Files for Bankruptcy After Losing $7.8M Lawsuit

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By    |   Monday, 05 Dec 2016 08:37 PM

The Texas arm of a national union that represents janitors and other service employees has gone bankrupt after a judge ordered it to pay nearly $8 million in a lawsuit.

According to the Washington Free Beacon, Service Employees International Union Texas (SEIU District Five) lost a lawsuit filed by a Houston company that offers janitorial services. That company claimed the SEIU chapter conducted a smear campaign against it in the mid-2000s.

After years of wrangling in court, the union has filed for bankruptcy because of the court order to pay $7.8 million in damages. In a statement, the union tried to put a positive spin on the judgment.

"This [bankruptcy] filing ensures that our union will remain open for business, representing members at the bargaining table and maintaining the vital role the union plays in helping working Houstonians have a voice at work, protecting them from unfair employers, and building a better future for their families," SEIU Texas President Elsa Caballero said, reports the Free Beacon.

"Bankruptcy is a common process provided under the law to protect organizations — such as corporations, non-profits, unions etc. — and allows us to seek temporary relief from our debt while we continue to pursue our appeal of an unfair judgment."

Professional Janitorial Service of Houston, Inc., however, is determined to collect the money it believes it is owed.

"The SEIU won't escape its fate after attacking my company," CEO Brent Southwell said. "We will keep this process going for as long as the SEIU wants, first by making them reveal their secrets and then by making the union's Washington, D.C., office pay for its sins."

Professional Janitorial Service filed the suit in 2007 after the union, according to The Wall Street Journal,  sent material to its customers that tried to persuade them to stop using the company's services. The union claimed the company wasn't following labor laws.

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The Texas arm of a national union that represents janitors and other service employees has gone bankrupt after a judge ordered it to pay nearly $8 million in a lawsuit.
texas union, file bankruptcy, judgement, seiu
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2016-37-05
Monday, 05 Dec 2016 08:37 PM
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