Teamsters Challenge Yellow’s Liquidating Defense for Layoffs

A group of unions is asking a court to reject defenses by bankrupt Yellow Corp. in its bid to reduce its liability for damages to laid-off workers.

The International Brotherhood of Teamsters’ brief filed Tuesday in the US Bankruptcy Court for the District of Delaware said the court shouldn’t accept the trucking company’s argument that it was a liquidating fiduciary when it ceased operations or that its failure to provide advance notice of layoffs was done in good faith.

The brief was filed ahead of a trial over damages tied to claims that Yellow failed to provide adequate notice of ...