Thursday, September 27, 2012
California Subsidiary of Carey International Files for Bankruptcy
Per the American Bankruptcy Institute Newsroom:
September 27, 2012
The Southern California arm of chauffeured limousine giant Carey International Inc. has filed for bankruptcy after the subsidiary lost a multimillion-dollar legal battle with its network of drivers, worrying company executives that more disputes could follow, Dow Jones DBR Small Cap reported today. Carey Limousine L.A. Inc. filed for bankruptcy on Tuesday to protect itself from copycat disputes that could follow the $4.5 million legal award won by some of its Los Angeles-area drivers. Those drivers convinced an arbitrator that the Carey subsidiary had misclassified the drivers as contractors when, in fact, they should have been treated as employees.