US Can Collect From Bankrupt Contractors, 5th Circ. Finds

Law360, New York (February 20, 2013, 7:08 PM EST) -- The Fifth Circuit ruled Wednesday that the U.S. has priority to collect unpaid debts from owners of bankrupt contractors if the government had asserted a claim and the owner had knowledge of the claim before the bankruptcy.

A three-judge panel affirmed a Texas federal court's ruling that the U.S. could collect $11.9 million from the owner of insolvent contractor Renda Marine Inc., which allegedly transferred assets to other companies to avoid repaying a debt owed under a dredging contract.

The panel ruled that Oscar Renda is...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.