Litigation

Mattress retailer Sleep Number may pay up to $1.825 million in retention awards to 38 employees after a Southern District of New York bankruptcy judge rejected the U.S. trustee’s argument that some participants should be treated as insiders under the Bankruptcy Code. The awards were intended to keep key employees from leaving while Sleep Number completed its bankruptcy sale.

Jackson Walker has agreed to pay $15 million to former bankruptcy clients in a settlement of litigation the U.S Trustee’s Office filed alleging the Texas firm failed to disclose a romantic relationship between a former partner Elizabeth Freeman and former U.S. Bankruptcy Judge David Jones of the Southern District of Texas.

The U.S. Bankruptcy Court for the District of Connecticut decision in JNET Commc’ns offers a stark reminder that control of cash collateral is not a mere formality under Article 9 of the Uniform Commercial Code; it is the crucial element of perfection itself.

In a recent decision in the bankruptcy case of Del Monte Foods, the U.S. Bankruptcy Court for the District of New Jersey interpreted a liability management exercise that was challenged through the prepetition term loan agreement’s ratable sharing provision in the context of a debtor-in-possession financing and related roll-up, thereby providing the first actual market guidance on this issue.

AI agents will not eliminate the need for court reporters, videographers, interpreters, production specialists or litigation support teams. They will, however, enhance how those professionals spend their time and how effectively information moves around them.

Notable recent court filings in entertainment law.

Adverse Possessor Provided Insufficient Evidence to Support TackingTown’s Installation of Guardrails Did Not Constitute a TakingMortgagee Entitled to Deficiency JudgmentLandowner Adequately Alleged Trespass During Renovation

When a debtor that is a landlord rejects a real property lease in bankruptcy, the tenant has a choice. Either the tenant can treat the lease as terminated or retain its rights under the lease. These rights include the use, possession, quiet enjoyment, subletting and hypothecation of the property. In a recent case, the parties and the court grappled with this question: when does the tenant need to make that decision? When the lease is rejected, or by some other date?