Fulltext Search
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
Decision in American Remanufacturers, Inc. holds that an agreement creating mutual obligations can provide a defense to a preference action

Summary

In a 56 page opinion published June 9, 2011, Judge Walsh ruled that a method of operating in which all of the credits and debits between two companies were netted out allows this same method to be used in calculating a set-off defense in preference litigation. Judge Walsh’s opinion is available here (the “Opinion”).

Background

USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Credit (finance), Debtor, Discovery, Debt, Trustee, Third Circuit, Court of equity
Decision in New Century TRS Holdings, Inc. holds that publication in 2 newspapers is insufficient to grant a motion for summary judgment

Summary

In a 14 page opinion published June 7, 2011, Judge Carey ruled that publication of notice in only two newspapers was insufficient information to grant a motion to dismiss based on adequacy of notice. Judge Carey’s opinion is available here (the “Opinion”).

Background

USA, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Debtor, Interest, Federal Reporter, Due process, Subject-matter jurisdiction, The Wall Street Journal, United States bankruptcy court, Third Circuit
Decision in DBSI delays motion for summary judgment

Summary

In an 11 page opinion published May 27, 2011, Judge Walsh granted a motion under F.R.C.P. 56(d) and quoted another opinion which says “where the facts are in possession of the moving party a continuance of a motion for summary judgment for purposes of discovery should be granted almost as a matter of course.” Judge Walsh’s opinion is available here (the “Opinion”).

Background

USA, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Breach of contract, Federal Reporter, Discovery, Consideration, Liquidation, Federal Rules of Civil Procedure (USA), Trustee, Third Circuit
Decision in in re: Donna K. Brady holds: officers aren't contractors

Summary

In an 11 page opinion published May 18, 2011, Judge Shannon ruled that, in the context of a motion to dismiss, the officer of a corporation, which is itself a contractor, is not also a contractor by virtue of her position within the corporation. Judge Shannon’s opinion is available here (the “Opinion”).

Background

USA, Company & Commercial, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Debtor, General contractor, Fraud, Fiduciary, Federal Reporter, Debt, Default judgment, Legal burden of proof, Supreme Court of the United States, Third Circuit
Another minor fix to a previous opinion - New Century TRS Holdings, Inc.

Judge Carey released an order amending his Memorandum Opinion dated May 10, 2011 in the New Century TRS Holdings, Inc. bankruptcy. His previous opinion had misstated the amount of a settlement between the two parties in the adversary proceeding which gave rise to the opinion.

USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy
Decision in point blank solutions helps define "Core" and "Non-core"

Summary

In an opinion published May 20, 2011, Judge Walsh held that a settlement agreement which is rejected in a bankruptcy proceeding is “Core” and will be decided by the Bankruptcy Court, even when it contains a jurisdictional clause that requires the agreement to be interpreted according to the laws of New York. Judge Walsh’s opinion is available here (the “Opinion”).

Background

USA, New York, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Shareholder, Debtor, Federal Reporter, Liability (financial accounting), Second Circuit, United States bankruptcy court, Third Circuit
Minor fix to a previous opinion - NEC Holdings Corp.

Judge Walsh released an amended Opinion in the NEC Holdings Corp. case on May 18, 2011. His previous opinion had an incomplete citation of 28 U.S.C. § 157(b)(2). It shows just how serious our judges are about the Bankruptcy Code.

In an effort to keep followers of this blog fully apprised of every opinion released by the Delaware Bankruptcy Court, I have linked to Judge Walsh’s newly corrected opinion here.

USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Debtor, Limited liability partnership, Liability (financial accounting), United States bankruptcy court