Laclede Steel Co. v. Concast Canada, Inc.

**Laclede Steel Co. v. Concast Canada, Inc.** This case involved a payment dispute between two companies during bankruptcy proceedings. Laclede Steel had made a payment to Concast Canada 177 days after receiving an invoice. When Laclede Steel later filed for bankruptcy, the bankruptcy court examined whether this delayed payment could be recovered as a "preferential transfer" - essentially money that gave one creditor an unfair advantage over others just before the bankruptcy. The court decided that because the payment took so long (177 days), it was not part of normal business operations. The court ruled that this payment could be "avoided" or clawed back, meaning Concast Canada would have to return the money to be distributed fairly among all creditors. **Why this matters for workers:** When a company goes bankrupt, workers often struggle to recover unpaid wages, benefits, or severance. This ruling reinforces that unusual or late payments made before bankruptcy can be recovered and redistributed. This helps ensure that money isn't unfairly diverted away from workers and other creditors who are owed money. Workers should know that bankruptcy courts actively work to prevent companies from playing favorites with payments before filing for bankruptcy.