'This Guy Walks into a Divorce Lawyer's Office ''
October 06, 2003
The traditional adversarial system continues to draw criticism when aggressively applied to family law cases. Apart from the inefficiencies, impracticalities and associated costs of strongly competitive approaches, the reasons for abandoning these poorly conceived methods of dispute resolution should be obvious.
Releasing the Albatross
October 01, 2003
Last month, we discussed the fact that Chapter 11 cases can last for months or years after plan confirmation solely as a result of unresolved disputed claims. To address the speedy resolution of such claims, debtors have increasingly turned to mandatory "alternative dispute resolution" (ADR). We discussed the utilization of voluntary ADR by bankruptcy courts, and the implementation of ADR procedures. This month, we discuss The Sixth Circuit's Decision in Spierer v. Federated Department Stores, et al. (In re Federated Department Stores), 328 F. 3d 829 (6th Cir. 2003) (hereinafter, "Federated"), wherein the Sixth Circuit affirmed the power of the bankruptcy courts to implement mandatory ADR procedures
'My Claim Is What?'
October 01, 2003
For many years, the holder of a stock redemption claim against a company in bankruptcy faced almost certain demotion to the class of interest holders. No matter how long ago the stock redemption occurred, no matter the solvency of the company, and no matter how innocent the holder appeared, any claim for unpaid installments due under a stock redemption agreement was sent to the back of the line. In 1996, the Supreme Court issued a decision that rekindled hope for stock redemption claimants; recent case law, unfortunately, has failed to maintain a uniform front on this issue.
Media Tips for Bankruptcy Lawyers
October 01, 2003
Is it safe to put your reputation in the hands of a reporter you do not know and have no reason to trust? Yes, but only if you follow the rules. Whether you are on the debtor or creditor side, following the rules will have you quoted often in the media, because reporters will know you are a good source for their bankruptcy-related stories.
The Wagoner Doctrine Keeps Rolling
October 01, 2003
A truism of bankruptcy is that assets available to pay creditors are few and far between. Among them are causes of action, and thus both debtors and trustees rightly hoard the right to sue third parties. Does the debtor or trustee have standing to sue when the entity brought the harm upon itself? Generally, the answer is no, and thus in this present environment of corporate misdeeds and scandals, litigation against outsiders is foreclosed by the debtor's own misfeasance.
Foreign Debtors in Chapter 11
Last month's article concluded with 'Surviving a Motion to Dismiss or Suspend,' which discussed the exact boundaries of international comity, and explained that these boundaries are not clear. Therefore, a court's decision on a motion to dismiss or suspend a non-U.S. debtor's bankruptcy case under section 305(a)(2) (which invokes the 304(c) factors) will depend heavily on the case's specific facts.
Test Your Expertise ' DIP Financing
For the reader who has been involved in more debtor-in-possession(DIP) financings than he or she can remember, please treat this article as the opportunity to impress yourself with just how much you know about it. Check off each category if you can truthfully say 'I knew that!' A sum of eight or more checks makes you a big dipper.
Lien Creation and Lien Perfection: What's the Difference?
September 23, 2003
It is generally understood that materialmen, contractors, subcontractors and others (collectively called 'contractors') who perform labor or furnish materials on construction projects are entitled under state law to assert a mechanics' lien against real property for the value of the labor or materials they provide. What is less clear is the effect of a bankruptcy petition that is filed before the contractor has taken the necessary steps to create or perfect its rights.
