The Thompson Memo Ruling
September 27, 2006
Judge Lewis Kaplan's eloquent and eminently correct decision striking down the Justice Department's policy embodied in the 'Thompson Memo' that pressures corporations, by threat of indictment, to cut off legal fees to 'culpable' employees, was widely publicized and acclaimed. But it may ultimately produce little change in the real world of white-collar criminal defense.
Farmland Industries Creditors Paid in Full
September 27, 2006
Maximizing the recovery for unsecured creditors is the primary goal of every liquidating trustee. In proposing the Farmland Industries liquidating plan, the debtor estimated that the maximum recovery for unsecured creditors would not exceed 85% of their allowed claims and that it would take the liquidating trustee approximately 5 years to reach that payout. Instead, JPMorgan, the appointed liquidating trustee, paid unsecured creditors more than 100% of their allowed claims 3 years earlier than anticipated. Several factors played a crucial role in maximizing the payout for Farmland Industries' unsecured creditors; these are explained in this article.
Trenwick America
September 27, 2006
The September Issue of this newsletter discussed the Delaware Bankruptcy Court's recent decision, In re Scott Acquisition Corp., 2006 WL 1732277 (Bankr. D. Del. 2006), which ruled that directors and officers of insolvent subsidiary companies owe fiduciary duties to both its creditors and the subsidiary itself. Hot on the heels of that decision, the Delaware Chancery Court, Vice-Chancellor Leo E. Strine presiding, has again waded into the breach of fiduciary duty and zone of insolvency arena with its decision in <i>Trenwick America Litigation Trust v. Ernst & Young, L.L.P., et al.</i>
Debtor Strategies for Avoiding Unfavorable Tax
September 27, 2006
The treatment of loans to a debtor's former employees can result in unforeseen and unfavorable tax consequences. An unwary trustee or administrator of a plan of reorganization (each a 'Responsible Individual') who employs the wrong approach can expose the estate to unanticipated payroll tax liability. Moreover, if the Responsible Individual fails to reserve sufficient funds for payment of such payroll tax liability, he may be forced to pay such liability out of his own pocket. As a result, it is critical that a Responsible Individual be familiar with the issues, and employ the strategies discussed herein.
Verdicts
September 27, 2006
The latest rulings of importance to you and your practice.
Med Mal News
September 27, 2006
News from around the country.
When Drug and Device Company Reps Enter the Room
September 27, 2006
It is becoming increasingly common for medical company representatives to be present in examination rooms, procedure rooms and even in operating rooms. Because of this trend, it is important not only for medical companies, but also for hospitals and physicians to be aware of the potential liability related to having these representatives present during examinations or procedures.
After Counseling Fails, Many Sue Therapists
September 27, 2006
The growing popularity of therapy for everything from marriage troubles to drinking problems has the mental health care community paranoid about lawsuits. Legal and health care experts say that therapists today face a greater risk of being sued than ever before, particularly given the 55% divorce rate and the breakdown of the family.
