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Business Associations Keyed to Diamond, 6th Ed.
Shapiro Brothers Shoe Company, Inc. v. Lewiston-Auburn Shoeworkers Protective Association, Inc.
Citation:
320 A.2d 247 (1974)Facts
On January 23, 1973, Shapiro Brothers Shoe Company posted notice that it was “voluntarily going out of business” and would conclude operations on February 22, 1973. However, the company actually ceased operations on February 5, 1973, thirteen days after posting the notice. On March 2, 1973, the Lewiston-Auburn Shoeworkers Protective Association notified Shapiro that it believed the company was obligated to pay severance pay to employees who had worked at the plant for one year or longer. The union threatened to bring suit if the matter wasn’t resolved promptly. Two weeks later, Shapiro filed an action for declaratory judgment, challenging the constitutionality of Maine’s severance pay statute. The statute required employers of 100+ employees to give one month’s notice before voluntarily going out of business or pay severance pay of up to one month’s wages to employees who had worked for the employer for at least one year. While the case was pending, the Maine Legislature repealed and replaced the relevant paragraph of the statute, but the court determined that the action remained justiciable under Maine’s general savings clause.
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