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IN RE CONTINENTAL AIRLINES CORP.

No. 89-2347.

901 F.2d 1259 (1990)

In re CONTINENTAL AIRLINES CORP., et al., Debtors. AIR LINE PILOTS ASSOCIATION, INTERNATIONAL and James C. Stephens, et al., Appellants, v. CONTINENTAL AIRLINES, INC., et al., Appellees. O'NEILL GROUP, Appellants, v. CONTINENTAL AIRLINES, INC., et al., Appellees. UNION OF FLIGHT ATTENDANTS, Appellant, v. CONTINENTAL AIRLINES, INC., et al., Appellees.

United States Court of Appeals, Fifth Circuit.

May 25, 1990.

Attorney(s) appearing for the Case

Randolph J. Haines, Marty Harper, Allen Clarke, Jessica Franken, Lewis & Roca, Phoenix, Ariz., for appellants.

Reginald H. Wood, William Schweinle, Jr., Stubbeman, McRae, Sealy, Laughlin & Browder, Houston, Tex., for O'Neil Group.

James R. O'Donnell, Leon V. Komkov, Butler & Binion, Houston, Tex., for Stephens Group.

Barbara Gardner, Mandell & Wright, Houston, Tex., Bruce Simon, Babette Ceccotti, Cohen, Weiss, & Simon, New York City, Kathleen M. Schaden, Schaden, Heldman & Lampert, Denver, Colo., Christopher Cameron, Taylor, Roth, Bush & Geffner, Burbank, Cal., Daniel P. Casey, Continental Airlines, Inc., Houston, Tex., for appellees.

John J. Gallagher, Charles L. Warren, Jon A. Geier, Aiken, Gump, Strauss, Hauer & Feld, Washington, D.C., Lenard Parkins, Sheinfeld, Maley & Kay, Houston, Tex., for Continental Airlines, Inc.

Before GEE, REAVLEY, and GARWOOD, Circuit Judges.

GEE, Circuit Judge:

Today's case presents the question whether employees whose collective bargaining agreements are rejected in a Chapter 11 bankruptcy are entitled to future wages and benefits as contract rejection damages under 11 U.S.C. § 502(g). Recognizing that the agreements here at issue do not guarantee employment, we hold that the difference between the wages and benefits set out in the agreements and the wages and benefits actually paid under the emergency...

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