WL Homes Trustee Must Alter Arbitration Bid: Judge

Law360, New York (January 19, 2011, 8:01 PM EST) -- A bankruptcy judge Wednesday declined to approve a binding arbitration program proposed by WL Homes LLC’s liquidation trustee to settle faulty construction claims, saying he couldn't deprive the claimants of litigation rights in the context of a Chapter 7 case.

At a hearing in the U.S. Bankruptcy Court for the District of Delaware, Judge Brendan L. Shannon directed the parties to work together on a scaled-down arbitration program that would preserve claimants’ rights to sue WL Homes and third-party contractors that worked on the allegedly defective...
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