U.S. Bankruptcy Judge Cornelius Blackshear has denied a request by Rep. Peter Hoekstra (R-MI) for sealed documents pertaining to the bitter dispute involving Mademoiselle Knitwear, a union contractor; Liz Claiborne Inc., and UNITE. In an Jun. 8 order, Blackshear did not give a reason for his denial other than to say that his court, where Mademoiselle is in Chapter 11 proceedings, “is primarily concerned with maintaining the sanctity of the confidentiality agreement and the fidelity of the case.”
Hoekstra sought access to the documents as part of a congressional probe he is leading into the adequacy of U.S. labor law. A key element in the Mademoiselle controversy consists of multimillion-dollar payments made by Claiborne to UNITE under the practice of liquidated damages — penalties paid by union manufacturers to UNITE when they turn to nonunion production — and the issue of liquidated damages has become a focal point in Hoekstra’s investigation. [Capital Cities Media 06/11/98]
