Bankruptcy

  • June 24, 2022

    NJ Developer Wants To Claw Back Cash From Ex-Executives

    Real estate developer National Realty Investment Advisors has filed a suit in New Jersey bankruptcy court to claw back $420,000 it alleges the company's then-CEO withdrew from its accounts before passing it on to a now-former executive facing fraud charges.

  • June 24, 2022

    Jailed NY Atty Kossoff Urged To Settle $4.5M Escrow Suit

    A Manhattan federal judge on Friday encouraged disbarred and incarcerated New York City real estate attorney Mitchell Kossoff to settle a former client's $4.5 million escrow theft suit after pleading guilty to the same allegations in a related criminal case.

  • June 24, 2022

    Creditor Committee OK'd In Lear Capital Subchapter V Case

    A Delaware bankruptcy judge has approved a settlement that will allow the formation of a committee to represent Lear Capital Inc.'s customers in the metal and coin investment firm's Subchapter V bankruptcy and extend case deadlines by three months to allow plan talks.

  • June 24, 2022

    Alex Jones Must Pay Sandy Hook Defamation Case Sanctions

    Conspiracy theorist podcaster Alex Jones lost his bid Friday to delay the payment of $1 million in sanctions ordered by a Texas state court judge in a defamation suit brought by families of victims of the 2012 Sandy Hook Elementary School shooting when the court said he is able to pay the fines and still continue defending himself in the proceedings.

  • June 24, 2022

    Ex-XFL Commissioner, League Founder Drop Termination Suit

    Former XFL Commissioner Oliver Luck and the football league founder and World Wrestling Entertainment Inc. CEO Vince McMahon have mutually agreed to drop a lawsuit over Luck's pay after his firing in 2020.

  • June 24, 2022

    Leech Tishman Accused Of Helping Exec Steal, Hide Funds

    A New York investment fund has filed suit in Pennsylvania state court accusing Pittsburgh-based firm Leech Tishman Fuscaldo & Lampl LLC and its managing partner of helping a construction company executive steal millions in investor money, allegedly going so far as to hide money in the firm's client trust account.

  • June 24, 2022

    Supreme Court Overturns Roe v. Wade

    The U.S. Supreme Court on Friday upheld a Mississippi abortion ban and overturned the constitutional abortion right established nearly 50 years ago in Roe v. Wade, setting the stage for a widespread rollback of abortion rights in many statehouses around the country.

  • June 23, 2022

    Varvatos Employees' Ch. 11 Bias Suit Loses At 3rd Circ.

    The Third Circuit upheld a lower court's dismissal of a sex bias suit filed by employees of men's clothing retailer John Varvatos Enterprises Inc., ruling that the class of female workers hadn't shown inequitable conduct by the debtor's owners.

  • June 23, 2022

    Gold Standard Gets OK For Quick Ch. 11 Auction Hearing

    A Delaware bankruptcy judge on Thursday gave Chicago-based industrial baker Gold Standard Baking the go-ahead to tap into $500,000 in Chapter 11 financing and take a quick first step in what the company hopes to be a monthlong sale process.

  • June 23, 2022

    Judge Approves $1B Surfside Deal, Holds Off On Fee Request

    The judge overseeing the consolidated litigation over the collapse of the Champlain Towers South condominium in Surfside, Florida, approved a $1.02 billion global settlement on Thursday, but said he would not rule on a $100 million fee request from class counsel until after he had completed the claims process with victims.

  • June 23, 2022

    Kossoff Pushes Against Default In $4.5M Escrow Case

    Disbarred New York real estate attorney Mitchell Kossoff has argued from prison that a onetime client should not win a default judgment on claims he misappropriated $4.5 million in escrow funds, contending he's had "little to no opportunity" to speak to his lawyers.

  • June 23, 2022

    Cyprus Mines Wins Ch. 11 Stay Of Actions Against Parent

    Talc producer Cyprus Mines Corp. received approval Thursday from a Delaware bankruptcy judge to extend the automatic stay of litigation against its nondebtor parent company to stop the prosecution of claims for talc injury against the parent.

  • June 23, 2022

    Creditors Seek Involuntary Ch. 11 For Mexico Payday Lender

    Creditors of Mexican payday and consumer lender Crédito Real have asked a New York bankruptcy judge to send the company into Chapter 11 bankruptcy a week after it defaulted on a $50 million loan.

  • June 22, 2022

    Maxus Must Prove YPF Caused Harm In $14B Ch. 11 Suit

    A Delaware bankruptcy judge on Wednesday found the liquidating trust created under the Chapter 11 plan of Maxus Energy will have to prove the actions of Maxus' parent YPF SA harmed it, as the trust seeks payment of up to $14 billion in environmental liabilities.

  • June 22, 2022

    Ch. 11 Cheat Sheet: Gold Standard Baking

    One of the nation's largest industrial bakers, Chicago-based Gold Standard Baking LLC, hit Chapter 11 in Delaware with $140 million in long-term debt and intention to sell its business to secured lenders.

  • June 22, 2022

    Tilton, Zohar Both Tell Chancery They Control Stila Styles

    Delaware Chancery Court Chancellor Kathaleen St. J. McCormick got a crash course Wednesday in what she called "a very long and bitter control dispute" for Stila Styles Inc., as distressed debt diva Lynn Tilton and an investment fund she once owned both claimed they had the right to manage the cosmetics company.

  • June 22, 2022

    Hertz Notices Ruled OK In Some Ch. 11 Renter Arrest Disputes

    A Delaware bankruptcy judge declined on Wednesday to rule that public notices in the Hertz car rental company's Chapter 11 violated bankruptcy rules to the detriment of some customers now seeking false arrest damages for allegedly bogus late return or car theft claims.

  • June 22, 2022

    Bankruptcy Judge Skeptical Of Honeywell's Beef Over Forms

    A Pennsylvania bankruptcy judge on Wednesday appeared skeptical that a Honeywell subsidiary's asbestos injury settlement trust was mismanaging payouts by using uniform claim form language, questioning how many ways a person could say they were exposed to the harmful substance.

  • June 22, 2022

    Architecture Firm Gets Nod On $70M Ch. 11 Asset Sale

    Bankrupt architecture and design firm EYP Group Holdings Inc. received approval Wednesday in Delaware for a $70 million sale of its assets after more than a year of out-of-court and in-court marketing efforts.

  • June 22, 2022

    Imerys, Cyprus Don't Need To Share Docs With Insurers

    A Delaware bankruptcy judge on Wednesday said insurers' worries about hidden documents did not require her to order more disclosures during mediation in the Imerys Talc America and Cyprus Mines Chapter 11 cases that runs until the end of the month.

  • June 22, 2022

    Gold Standard Baking Files Ch. 11 With Plans For Sale

    One of the nation's largest industrial bakers, Chicago-based Gold Standard Baking LLC, hit Chapter 11 in Delaware on Wednesday with $140 million in long-term debt and intention to sell its business to secured lenders.

  • June 21, 2022

    'By Chloe' Celeb Chef Settles Trademark Spat With PE Firms

    The chef behind vegan restaurant chain "By Chloe" said Tuesday she has settled two trademark infringement suits against private equity firms and a hospitality group that she accused of profiting off of her name and likeness.

  • June 21, 2022

    Models Lose On Ch. 11 Class Claim Against Major Model Firm

    A New York bankruptcy judge on Tuesday rejected a model's request to pause Major Model Management's Chapter 11 proceedings and allow her proposed punitive class action to go forward, saying the bankruptcy process could better handle the talents' mismatched stalled payment claims.

  • June 21, 2022

    Cypress Environmental Gets OK For Debt-Swap Ch. 11 Plan

    A Texas bankruptcy court judge on Tuesday approved energy-sector inspection service Cypress Environmental Partners' $60 million debt-for-equity Chapter 11 plan, newly revised to free up more cash for unsecured creditors.

  • June 21, 2022

    NJ Developer Gets Cautious OK For Ch. 11 Property Sales

    Real estate developer National Realty Investment Advisors received tenuous approval Tuesday for a series of private property sales from a New Jersey bankruptcy judge only after it agreed to segregate the sale proceeds until investors could review the deals.

Expert Analysis

  • How To Avoid Construction Lien Traps In Bankruptcy Filings

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    The Ninth Circuit Bankruptcy Appellate Panel’s decision in 450 S. Western Ave. serves as a cautionary tale on the risks of a contractor agreeing not to foreclose a lien in exchange for the owner agreeing not to challenge the validity of the lien in bankruptcy filings, and highlights how contractors can protect their liens, says Blake Robinson at Davis Wright.

  • Opinion

    Now's The Time To Address Archaic Law School Curricula

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    With law school enrollments jumping significantly ahead of a potential recession and more students graduating than the market can absorb, law schools should turn to creative solutions to teach students how to negotiate, work with clients, specialize and use technology to practice their craft more efficiently, says University of Colorado adjunct professor Jason Mendelson.

  • Sears Bankruptcy Case Shows Modification Disclosure Is Key

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    The recent New York federal court decision in Transform Holdco v. Sears Holdings highlights the importance of seeking approval of any material modifications to a purchase agreement in a bankruptcy, as historical setting can be a factor if any dispute arises later between a debtor and a buyer, say Frank Grese and Reginald Sainvil at Baker McKenzie.

  • Lessons From Lawyer Fee-Sharing Agreements Gone Wrong

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    The recent fee-sharing dispute between Edelson and Girardi Keese is a reminder that lawyers who do not strictly follow the applicable rules may risk a disciplinary complaint, lose their share of the fee, or wind up in costly litigation with co-counsel, says David Grossbaum at Hinshaw.

  • LeClairRyan Bankruptcy Highlights Pass-Through Tax Issue

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    A Virginia bankruptcy court's recent ruling in the case of defunct law firm LeClairRyan shows there may be serious tax consequences for pass-through entity partners who give up their ownership interest without following operating agreement exit provisions and updating bankruptcy court filings, say Edward Schnitzer and Hannah Travaglini at Montgomery McCracken.

  • 9th Circ. Ruling Offers Guidance On Automatic Stay Violations

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    The Ninth Circuit Bankruptcy Appellate Panel’s opinion in Censo v. Newrez clarifies the nebulous standard for automatic stay violations, and provides useful guidance for practitioners to consider in determining whether a creditor's defensive action taken in pending litigation counts as a violation, say Keith Owens and Zach Williams at Fox Rothschild.

  • Opinion

    Hold Alabama And North Carolina Accountable On Ch. 11 Fees

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    As highlighted in the U.S. Supreme Court’s recent Siegel v. Fitzgerald case, Chapter 11 debtors in Alabama and North Carolina are paying lower quarterly fees than those in the other 48 states, an unconstitutional reality creating harms and costs that must be addressed by the Fourth Circuit, says Donald Swanson at Koley Jessen.

  • 8 Steps To Creating A Legal Ops Technology Road Map

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    Legal departments struggling to find and implement the right technologies for their operations should consider creating a road map that summarizes their approach to technology changes, provides clearly defined metrics for success, and serves as the single source of truth for stakeholders, says Melanie Shafer at SimpleLegal.

  • Awaiting Critical Bankruptcy Decision For Surety Industry

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    The recent oral argument in Argonaut Insurance v. Falcon V offers the Fifth Circuit an opportunity to create a rule for multilateral contracts in bankruptcy and exposed the common misconception that a surety assumes the risk of the principal's nonperformance when it issues a bond, say Lisa Tancredi at Womble Bond and Laura Murphy at Travelers.

  • The Importance Of Data And Data Analysis In Litigation

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    Understanding, analyzing and effectively presenting large data sets is an increasingly important skill in litigation as it allows plaintiffs to dramatically scale up the scope of cases and is often critical to defeating motions to dismiss and motions for summary judgment, says David Burnett at Motley Rice.

  • Navigating Section 363 As A Decentralized Autonomous Org

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    Decentralized autonomous organizations are all the rage, raising questions on the advantages and disadvantages of coupling them with the Bankruptcy Code’s Section 363 sale process to acquire assets free and clear under the supervision of a bankruptcy court, say attorneys at O’Melveny.

  • Takeaways From 1st Circ.'s Tribal Sovereign Immunity Ruling

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    The First Circuit's recent decision in Coughlin v. Lac du Flambeau, finding that the U.S. Bankruptcy Code unequivocally strips tribes of their sovereign immunity, disregards extensive case law to the contrary and may make it easier for litigants to pursue claims against tribes under laws with similar immunity waivers, say attorneys at Brownstein Hyatt.

  • Turnover Provision Ruling Is Warning For Junior Creditors

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    The recent Third Circuit decision in CoFund v. Hitachi serves as a useful reminder to junior and senior creditors as to how their dealings in an intercreditor arrangement may play out following a debtor's bankruptcy, and provides insight into the consequences a junior creditor may face after breaching a turnover provision, say attorneys at Cadwalader.

  • Steps Companies Can Take To Mitigate Privilege Labeling Risk

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    Although Google prevailed on a recent privilege labeling sanctions motion, an important takeaway from the decision is that companies should assess their in-house procedures and employee training programs regarding privileged communications to mitigate risks of the potential appearance of bad faith privilege claims, say Gareth Evans at Redgrave and e-discovery attorney James Hertsch.

  • Perspectives

    Nonprofit Ruling Is An Important Step For Nonlawyer Practice

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    A New York federal judge’s recent ruling that will allow nonprofit Upsolve to give legal advice to low-income debtors without a license is a positive development for nonlawyer practice, but presents questions about how to ensure similar programs can exist without fighting dodgy constitutional battles, says Ronald Minkoff at Frankfurt Kurnit.

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