Knowing the California Supreme Court’s decision would have broad ramifications for the legal industry, attorneys for Jones Day and Orrick Herrington & Sutcliffe LLP beat a clawback bid by the bankruptcy trustee of Heller Ehrman by arguing a core principle: A defunct law firm doesn’t have a property interest in hourly matters continued by a dissolved firm’s former partners.
The federal government objected late Tuesday in Delaware to the proposed Chapter 11 plan of refinery operator PES Holdings LLC, saying the plan cannot be confirmed for numerous reasons related to its treatment of creditors and the lack of information about claims against the debtor.
The Chapter 7 trustee in the bankruptcy of Chicago's Yellow Cab Affiliation Inc. Tuesday said the claims that his suit accusing its officers of stashing assets contains too many false allegations are themselves inaccurate misdirection.
A New York bankruptcy judge overrode objections from a Teamsters pension fund and approved a settlement between bankrupt regional grocery chain Tops Markets LLC and its chief supplier, saying there was no evidence of insider dealing and that the math was in the insolvent company’s favor.
The Consumer Financial Protection Bureau urged the Ninth Circuit on Monday to reject a law firm’s challenge to a subpoena, saying the firm's argument that CFPB directors serve allegedly unconstitutional terms that can't be cut short is moot, because the agency’s current acting director can be ousted by the president at will.
A request by reorganized debtor Millennium Lab Holdings II LLC to close its Chapter 11 cases received court approval Tuesday, but a Delaware bankruptcy judge declined to make the decision retroactive in an effort by the debtor to avoid increased fees.
A U.S. Senate committee on Tuesday expressed concern over uneven rates in automakers’ recall repairs of cars equipped with potentially deadly Takata airbags, as millions of cars with the defective airbags are still on the road years after the country’s largest recall in history.
Bankrupt jewelry and accessories retail chain Claire’s Stores Inc. received interim approval Tuesday in Delaware to tap into $105 million of its larger proposed debtor-in-possession financing package, which will help the company maintain its supply of inventory while it navigates through the Chapter 11 process.
A Florida federal judge has ordered a convicted pastor and another man who duped churchgoers and their associates into investing $2 million in a fake fund to pay more than $8.6 million in restitution and civil penalties, the U.S. Commodity Futures Trading Commission said on Tuesday.
A new Florida law signed Monday will allow documents filed in federal bankruptcy proceedings to be admitted as evidence in foreclosure cases, barring homeowners who have agreed to surrender property in bankruptcy court from challenging foreclosure proceedings on the property.
Bondholders in a bankrupt hospital who sued the Bank of New York Mellon Corp. and JPMorgan Chase & Co. for allegedly mishandling $36 million in debt asked a Pennsylvania federal judge on Monday to reject the banks’ effort to narrow the scope of the case less than a month before it goes to trial.
Before his sudden departure Tuesday, Latham & Watkins LLP Chair Bill Voge engaged in a pattern of reckless behavior starting with sexually explicit messages sent to a woman he approached on behalf of a Christian men’s group and culminating in threats to her husband to have her thrown in jail. This story has been updated to include more details.
The Weinstein Co. steered its business into Delaware bankruptcy court and away from the scandals of co-founder Harvey Weinstein late Monday but immediately slammed into a case-opening battle over the source and cost of a $25 million bankruptcy loan.
Two law firms are battling it out in New York bankruptcy court to see who will lead a proposed class action against Westinghouse Electric on behalf of workers laid off on short notice, with both firms trading barbs and beating their chests in an attempt to muscle out the competition.
A California bankruptcy judge has approved a settlement ending the bankruptcy of defunct class action law firm Eagan Avenatti LLP — owned by the attorney representing Stormy Daniels in her legal battle against President Donald Trump — that allows a former partner to collect $4.85 million to resolve his claims of allegedly unpaid fees.
Colorado natural gas well developer Augustus Energy Resources LLC told the Delaware bankruptcy court on Sunday that it wants to hold a Chapter 11 auction of its assets, saying it is dealing with $78 million in debt, depressed energy prices and a $3.7 million class action over royalties.
A restructuring implementation agreement needed to integrate insolvency proceedings in multiple jurisdictions for bankrupt reinsurance firm Scottish Holdings Inc. received approval Monday in Delaware after the objections of creditors and the U.S. trustee were resolved.
The judge presiding over Aeropostale’s bankruptcy case said Monday he needs more time to render an opinion on the third-party litigation releases in the company’s Chapter 11 liquidation plan, but added he believes substantial contributions were made by the company’s term loan lenders seeking the releases.
The United States Trustee objected Monday in Delaware to the proposed Chapter 11 plan of bankrupt refinery operator PES Holdings LLC, saying the plan’s treatment of unsecured creditors deprives them of the right to vote on the restructuring proposal.
Constellation Healthcare Technologies Inc. on Friday filed for bankruptcy in New York with plans to quickly sell off most of its business units and restructure $160 million in debt, as the medical accounting conglomerate struggles with the fallout of a “large, complex and brazen fraud” allegedly perpetrated by its former CEO.
The U.S. Supreme Court last week held in Village at Lakeridge that the appropriate standard for determining nonstatutory insider status in bankruptcy is the clearly erroneous standard that was applied by the Ninth Circuit. But the concurring opinions, which address an issue that was not before the court, appear to be more significant, say Steven Wilamowsky and Aaron Krieger of Chapman and Cutler LLP.
It is undisputed that in his first year in office President Trump was able to confirm a significant number of judges to the federal bench. How it happened — and whether it's a good thing — are debated here by Sen. Chuck Grassley, R-Iowa, and Sen. Dianne Feinstein, D-Calif.
To its detractors, the so-called Brunner test, which is used to establish the dischargeability of student loan debts, stands out like a sore thumb. However, in an unexpected move, the U.S. Department of Education recently published a memo calling for comments that hinted it might be considering eliminating or modifying this standard, say attorneys with Troutman Sanders LLP.
When crafting a ground lease or any other form of triple net lease, special attention should be paid to the tensions that arise as a result of both tenant and landlord seeking to finance their respective positions, says Tzvi Rokeach of Kramer Levin Naftalis & Frankel LLP.
Increasingly, when courts impose a “legal hold” they require legal supervision of the preservation process, meaning lawyers must rely heavily on information technology professionals to execute the mechanics. John Tredennick of Catalyst Repository Systems and Alon Israely of TotalDiscovery offer insights on how legal and IT can work together to make the process more efficient and fulfill the company’s legal obligations.
Before the U.S. Supreme Court's decision in Merit Management v. FTI Consulting last week, almost any corporate debtor could file in New York or Delaware and, in structuring a securities buyout, plan to close in escrow through a financial institution and be certain that the buyout was unavoidable. No more, says Charles Tabb of Foley & Lardner LLP.
Foreign representatives have long used Chapter 15 discovery to investigate whether a foreign debtor has assets in the U.S. But two recent cases in New York involving Russian debtors demonstrate the value of Chapter 15 for uncovering assets that were fraudulently transferred, say Rick Antonoff and Evan Zucker of Blank Rome LLP.
Multiple courts have held that discoverable material from negotiations with a litigation funder, when executed properly, can be attorney work product and immune from disclosure in the later litigation. The recent Acceleration Bay decision is indicative of what happens when difficult facts conflict with best practices, says Eric Robinson of Stevens & Lee PC.
Now that crude oil prices appear to have stabilized, previously restructured oil and gas companies are once again looking to increase production and expand their asset bases. Bankruptcy created a competitive advantage for many reorganized entities, while companies that did not file are still in damage control, say attorneys with Jones Day.
Legal leaders who want to meet their clients' expanding expectations should start moving their documents to future-ready document management solutions now if they want to stay competitive in the next few years, says Dan Puterbaugh of Adobe Systems Inc.