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Appellate Court Finds Plaintiffs' Claims Under Section 362 Not Automatically Stayed

Parties holding potential claims against non-debtor third parties that are arguably "related to" the bankruptcy estate must weigh the risks and benefits of actively prosecuting such claims. The mere fact that a bankruptcy trustee could pursue such claims as property of the bankruptcy estate under Section 541 of the Bankruptcy Code will not be enough to argue that such claims are conclusively barred by the automatic stay.

9 minute read July 01, 2021 at 12:09 AM
By
Rudolph J. Di Massa Jr. and Malcolm Bates
Appellate Court Finds Plaintiffs' Claims Under Section 362 Not Automatically Stayed

In Ritchie Capital Management v. McGladrey & Pullen

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