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Defense of imputation of an agent’s bad conduct to its principal clarified in Pennsylvania; independent auditor at risk for $1 billion in damages

Official Committee of Unsecured Creditors of Allegheny Health, Education and Research Foundation v PricewaterhouseCoopers, LLP(3d Cir No 07-1397, May 28, 2010)

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USA, Pennsylvania, Insolvency & Restructuring, Litigation, Non-profit Organizations, Professional Negligence, Reed Smith LLP, Breach of contract, Fraud, Fiduciary, Audit, Negligence, Remand (court procedure), Collusion, Chief financial officer, Pennsylvania Supreme Court
An LLC member/manager is an ‘insider,’ so that payments are preferential transfers subject to avoidance up to one year prior to bankruptcy filing

Longview Aluminum, LLC v Brandt (In re Longview Aluminum, LLC), 2010 WL 2635787 (ND Ill, June 28, 2010)

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USA, Illinois, Company & Commercial, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Board of directors, Limited liability company, Consent, Title 11 of the US Code, Trustee, United States bankruptcy court, Seventh Circuit
Sanctions awarded under the bankruptcy court’s ‘inherent authority’

In re 15375 Memorial Corporation, et al, 430 BR 142 (Bankr D Del May 17, 2010)

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USA, Delaware, Energy & Natural Resources, Environment & Climate Change, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Costs in English law, Debtor, Discovery, Legal burden of proof, Holding company, Involuntary dismissal, Line of credit, United States bankruptcy court, Third Circuit
Extension of financial accommodations clarified

A Florida bankruptcy court recently clarified what constitutes a contract to extend financial accommodations for the benefit of the debtor, and the circumstances in which those contracts could be assumed, rejected or terminated. In re Ernie Haire Ford, Inc., 403 B.R. 750 (Bankr. M.D. Fla. 2009).

USA, Florida, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Retail, Debtor, Personally identifiable information, Debt, Motion to compel, Good faith, Precondition, Ford Motor Company, United States bankruptcy court
Third Circuit clarifies degree of control necessary to be an insider

A recent opinion from the U.S. Court of Appeals for the Third Circuit confirms that “actual control” over a debtor is not necessary to qualify as a nonstatutory “insider” for the purpose of extending the period for preference recovery under Section 547 of the Bankruptcy Code. See Schubert v. Lucent Technologies, Inc. (In re Winstar Communications, Inc.), 554 F.3d 382 (3rd Cir. 2009).

USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Breach of contract, Federal Reporter, Debt, Coercion, US Code, Trustee, United States bankruptcy court, Third Circuit