The Second Circuit on Friday dismissed Berger & Associates Attorneys PC’s attempt to recoup legal fees stemming from an aborted referral agreement, rejecting the law firm's argument that its former business partner was barred from bankruptcy relief for concealing or destroying evidence.
An online technology company on Friday fought to keep a bankrupt attorney formerly with Antonelli Terry Stout & Kraus LLP in a malpractice suit accusing the firm of botching a patent application for online advertising inventions, citing tactical implications.
Bond insurer Ambac Assurance Corp. on Friday unveiled details of a settlement with Detroit over the bankrupt city’s treatment of limited tax-general obligation bonds, reporting it will see a minimum 34 percent recovery that could rise if the city successfully voids a disputed $1.5 billion borrowing.
The U.S. unit of the bankrupt Canadian Nortel Networks Inc. submitted a settlement deal Thursday that will cap at just over $1 billion the amount of interest the telecommunications company’s bondholders can collect on their holdings, according to a filing in Delaware federal court.
Former CEO Eric Bloom of the bankrupt Sentinel Management Group Inc.on Wednesday lost a bid to overturn a March guilty verdict that found he operated a $500 million securities fraud scheme, reached by a jury Bloom said made its decision out of laziness and a desire to be finished quicker.
A New Jersey bankruptcy judge on Thursday gave Crumbs Bake Shop Inc. the green light to move ahead with plans to sell off its assets at a bankruptcy auction in August, with an investor group serving as the stalking horse bidder for the now-shuttered New York cupcake chain.
Troubles worsened within Portugal’s Espirito Santo banking empire Thursday when prosecutors arrested the former chief executive of Banco Espirito Santo in a money-laundering and tax-evasion probe and a third company in the group sought court protection from creditors.
A New York federal judge on Thursday upheld the convictions of five former Bernard L. Madoff Investment Securities LLC employees accused of aiding the Ponzi scheme but sharply criticized prosecutors for making “derogatory generalizations” in closing arguments to the jury.
A federal grand jury in Massachusetts on Wednesday charged the owners of bankrupt TelexFree Inc. with fraud and conspiracy in connection with the purported Internet telephone service company that authorities and investors contend was little more than a $1.1 billion pyramid scheme.
Global auto parts maker TRW Automotive Holdings Corp. filed an adversary suit against the old Chrysler company’s liquidation trust in New York bankruptcy court Thursday, seeking a declaration that it has no duty to indemnify Chrysler over allegedly defective steering systems.
A $58 million bankruptcy trust set up to compensate Residential Capital LLC borrowers cannot entirely expunge a claim brought by a man blaming a wrongful foreclosure for his wife's death, a New York bankruptcy judge ruled Thursday, saying the claimant can recover for any resulting emotional distress.
A North Carolina federal judge on Wednesday reversed a bankruptcy court's decision to close proceedings last year to estimate the mesothelioma liability of bankrupt Garlock Sealing Technologies LLC, citing the public's fundamental right to view documents filed in public courts.
A federal judge in Seattle has temporarily stopped the parent of bankrupt bitcoin exchange Mt. Gox from auctioning off the domain name bitcoins.com, finding that letting the sale proceed would hinder her ability to award potential damages in a $75 million contract suit against the company over licensing its intellectual property.
A Texas appeals court on Wednesday reversed a $1.1 million judgment against DLA Piper, finding that the former majority shareholder of defunct security technology company IdentiPHI Inc. lacked standing to pursue his claims against the firm.
Power giant Energy Future Holdings Corp. said Wednesday it is scrapping its prearranged restructuring deal and needs time to develop a new Chapter 11 plan, and asked a Delaware bankruptcy judge to extend its exclusivity periods by six months.
A New York federal judge on Wednesday denied an apparently fake motion on behalf of Bernie Madoff seeking to disqualify the U.S. Attorney from Madoff’s criminal suit on grounds that include the use of “voice-to-skull technology" to influence the court.
The U.S. trustee’s office on Wednesday urged a Delaware bankruptcy judge to reject GSE Environmental Inc.’s proposed reorganization, saying the Chapter 11 plan includes an employee bonus program that doesn’t pass muster under the Bankruptcy Code.
A Delaware bankruptcy judge on Wednesday rejected a request to stay Ormet Corp.’s court-approved $25 million deal for a shuttered aluminum plant so a union trust could appeal the sale order, saying the debtor faced “enormous” harm if the deal didn’t close.
A New York bankruptcy judge on Tuesday refused to dismiss a nationwide class action accusing Chase Bank USA NA of enforcing discharged consumer debts by reporting they were still collectible, ruling that the bank was required under U.S. bankruptcy law to update the false information.
Energy Future Holdings Corp. senior noteholders have been barred from fast-tracking their appeal of a settlement repaying $4 billion in first-lien bonds directly to the Third Circuit, a setback for their claim that the pact discriminates among similarly situated creditors.
The Eleventh Circuit’s ruling in Crawford v. LVNV Funding leaves open the possibility that the Fair Debt Collection Practices Act and related state corollary statutes may be applicable to bankruptcy proofs of claim, which will likely result in increased litigation against debt collectors and, potentially, actual creditors, say attorneys with Hunton & Williams LLP.
In this e-discovery era, why aren't more litigants using Federal Rule of Evidence 502(d) orders and affording themselves basic protection of their most sensitive information? Or, if they are moving for such orders, why are they doing it wrong? asks John Rosans of Katten Muchin Rosenman LLP.
Judge Jed Rakoff’s recent ruling in the case of Madoff Securities gives comfort to foreign investors that the proceeds of their indirect investments in U.S. companies will not likely be clawed back, but it does not come without certain warnings and limitations — especially considering a contradictory Ninth Circuit ruling issued a mere three days prior to Rakoff’s decision, say attorneys with Orrick Herrington & Sutcliffe LLP.
The Fifth Circuit opinion in Goldsby v. 804 Congress suggests that even where parties agree upon foreclosure-related fees, costs and charges before a bankruptcy, Section 506(b) of the Bankruptcy Code may still trump the provisions of their contract, says Debra McElligott of Weil Gotshal & Manges LLP.
A growing trend in the Southern District of New York akin to a sua sponte rocket docket can provide defendants with an opportunity to set the tone of discovery and shift the burden and risks of the schedule to their adversaries, say Isaac Greaney and Jackie Lu of Sidley Austin LLP.
Finding prospective clients and retaining them has little to do with your legal training and expertise, and yet you have no practice without successful client acquisition and retention. There is no reason you cannot apply your basic legal training to successful sales efforts hinging upon your practice strength and experience, says independent law firm consultant Jennifer Topper.
The Fourt Circuit's second opinion in the case of National Heritage Foundation shows that it is imperative for the proponent of a nonconsensual nondebtor release to provide appropriate evidence to justify approving such a release, although the court did not draw a bright line as to how many of the six Dow Corning factors must be satisfied, say Jason Harbour and Tara Elgie of Hunton & Williams LLP.
Nondiverse state court defendants facing purely state law claims that seek to secure federal jurisdiction should determine whether a good faith basis exists to pursue a third-party action against a federal actor in order to trigger the representative U.S. Attorney’s certification and remove such claims under the Westfall Act, say Michael Blumenfeld and Jonathan Singer of Miles & Stockbridge PC.
A district court decision in CWCapital Asset Management v. Burcam Capital II may bolster the arguments of secured creditors in opposing cramdown efforts by debtors who may have been emboldened by other recent decisions supporting creative classification schemes, say Scott Grossman and Ari Newman of Greenberg Traurig LLP.
Analytics offer opportunities for refining both discovery strategy and overall litigation strategy by providing information to support better informed decisions. As an added bonus, they can result in significant cost savings, say Nathalie Hofman and Carolyn Southerland of Huron Consulting Group Inc.