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Federal Judge Says Health Department Case Against Crack'd Egg Can Proceed

Submitted by jhartgen@abi.org on

The Allegheny County Health Department case against a Brentwood, Pa., restaurant that flouted COVID-19 restrictions and was ordered to close will proceed after a federal bankruptcy judge denied the business’ request to stop the closure, the Pittsburgh Post-Gazette reported. The Crack’d Egg restaurant, owned by Kimberly Waigand, filed for chapter 11 protection in October after the health department ordered it to close. The restaurant owners tried to move the closure case into the bankruptcy proceedings. Because the shutdown is related to the federal case, the owners argued, the outcome could affect the bankruptcy and should be heard by the federal court. But the law cited by the restaurant has an exception for actions by government regulatory powers, such as the health department, that prevents them from moving the case, U.S. Bankruptcy Judge Jeffery A. Deller wrote. The judge sent the case back to Allegheny County Common Pleas Court, where it is set to be heard by Judge John T. McVay.