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Stern v. Marshall: effects on Delaware

On June 23, 2011, the Supreme Court issued a ruling that has sent waves through bankruptcy courts across the nation. Stern v. Marshall, 131 S.Ct. 2594 (2011), is the latest opinion in a long running dispute between the estate of Vickie Lynn Marshall, better known as Anna Nicole Smith, and the estate of her late husband’s son, Pierce Marshall.

USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Subject-matter jurisdiction, US Constitution, Article I US Constitution, Supreme Court of the United States, United States bankruptcy court, US District Court for the Southern District of New York
Decision in Everything But Water, LLC requires preference claimants to identify transferees specifically in granting motion to dismiss

Summary

USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Debtor, Fraud, Federal Reporter, Involuntary dismissal, Bear Stearns, Federal Rules of Civil Procedure (USA), Trustee, United States bankruptcy court, Third Circuit
Semcrude decision delineates the process for analyzing motions for continuance vs. motions for summary judgment

Summary

USA, Energy & Natural Resources, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Natural gas, Federal Reporter, Discovery, Limited partnership, ConocoPhillips, Federal Rules of Civil Procedure (USA), United States bankruptcy court, Third Circuit
Fruehauf opinion illustrates that despite a preference to allow amendment of pleadings, courts won't always allow amendment

Summary

In a 23 page decision signed July 15, 2011, Judge Walsh of the Delaware Bankruptcy Court denied a motion to allow a plaintiff to file an amended complaint, holding that the amended complaint was too deficient to survive a motion to dismiss and therefore would not be allowed. Judge Walsh’s opinion is available here (the “Opinion”).

Background

USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Fraud, Statute of limitations, Federal Reporter, Liquidation, Constitutional amendment, Federal Rules of Civil Procedure (USA), Trustee, United States bankruptcy court, Third Circuit
Decision in DBSI Inc., reminds us that district courts have personal jurisdiction throughout the United States

Summary

USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Shareholder, Debtor, Unsecured debt, Interest, Federal Reporter, Personal jurisdiction, Debt, Pro rata, Federal Rules of Civil Procedure (USA), United States bankruptcy court, Third Circuit
Decision in Tweeter Opco, LLC., holds non-debtor controlling company liable for debtor's violation of the WARN Act

Summary

In a 24 page decision signed July 8, 2011, Judge Walrath of the Delaware Bankruptcy Court granted a motion to for summary judgment, holding a non-debtor defendant liable with the Debtor as a single employer for alleged WARN Act violations. Judge Walrath’s opinion is available here (the “Opinion”).

Background

USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Debtor, Class action, Federal Reporter, Limited liability company, Good faith, Summary offence, Worker Adjustment and Retraining Notification Act 1988 (USA), United States bankruptcy court, Third Circuit
Delaware's choice-of-law analysis as provided in a decision in PMTS Liquidating Corp., which partially granted a motion to dismiss

Summary

USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Fraud, Fiduciary, Board of directors, Federal Reporter, Liquidation, Goldman Sachs, Federal Rules of Civil Procedure (USA), Trustee, United States bankruptcy court, Third Circuit
Decision in crucible materials requires preference claims to contain more than just recitations of the code

Summary

In a 12 page decision signed July 6, 2011, Judge Walrath of the Delaware Bankruptcy Court granted a motion to dismiss, holding that a complaint that sets forth only conclusory allegations parroting the statutory language of the Bankruptcy Code is insufficient. Judge Walrath’s opinion is available here (the “Opinion”).

Background

USA, Delaware, Energy & Natural Resources, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Debtor, Debt, Constitutional amendment, Title 11 of the US Code, Federal Rules of Civil Procedure (USA), Trustee, United States bankruptcy court
Decision in DBSI Inc., reminds us that district courts have personal jurisdiction throughout the United States

Summary

USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Debtor, Fraud, Personal jurisdiction, Legal burden of proof, Liquidation, Prima facie, US Congress, Trustee, United States bankruptcy court, US District Court for District of Delaware
Decision in Tweeter Opco once again reminds trustees of the specificity requirement in pleading preference actions

Summary

In an 11 page opinion published June 14, 2011, Judge Walrath ruled that a Chapter 7 Trustee’s lack of specificity in pleading a preference action was grounds for dismissal under FRCP 12(b)(6). Judge Walrath’s opinion is available here (the “Opinion”).

Background

USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Debtor, Limited liability company, Debt, Liquidation, Constitutional amendment, Federal Rules of Civil Procedure (USA), Trustee