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Non-Creditor Was Entitled to Actual Notice of A Chapter 11 Plan’s Injunction Barring Suits Against Insurance Carriers
A person who was not a creditor of a bankruptcy estate was entitled to actual notice of an injunction that would bar the non-creditor from suing the debtors’ insurance carriers, a federal court has ruled. See In re Boy Scouts of America and Delaware BSA, No. 24-382, 2025 WL 893001 (D. Del. Mar. 24, 2025). The bankruptcy trustee had argued that the non-creditor was entitled to constructive notice, not actual notice. But the court held that both constitutional due process and the U.S. Bankruptcy Rules required actual notice.
Background
The factual background is straightforward. A person who was abused while a scout sued the Boy Scouts of America (BSA), the Heart of America Counsel (HOAC), and his abuser. The victim settled his claims against the BSA and HOAC but not the abuser. In a trial against the abuser in Missouri state court, the victim was awarded $20 million in compensatory damages and $100 million in punitive damages. A judgment was entered against the abuser.
The victim and the abuser entered into an agreement that assigned to the victim rights and claims the abuser had against certain insurance companies.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.