Firm Articles | Global Insolvency

What happens when a TPD claimant is declared bankrupt in Australia?

11 July 2016

In Berryman v Zurich Australia Ltd [2016] WASC 196 it was decided that a bankrupt's entitlement to claim a TPD benefit under a life insurance policy is not an entitlement that is divisible amongst the bankrupt's creditors, and therefore such an entitlement does not vest in the Official Trustee in bankruptcy. Tottle J of the Supreme Court of Western Australia ruled that the bankrupt insured could continue an action in his own name to recover the TPD benefit. Life insurers may need to adjust their claims' payment practices in light of the Berryman decision.

Australia, Insolvency & Restructuring, Insurance, Litigation, Clyde & Co LLP

Lender’s use of debtor’s valuation judicially estops lender from making value objection

11 December 2013

In re Investors Lending Group, LLC, 489 B.R. 307 (Bankr. S.D. Ga. 2013)

CASE SNAPSHOT

The secured lender was judicially estopped from objecting to the valuation of parcels of land that the debtor proposed to surrender to the secured creditor through its plan of reorganization because the debtor used the valuations provided by the secured lender’s appraiser.

FACTUAL BACKGROUND

USA, Georgia, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Collateral (finance), Foreclosure, Fair market value, Secured creditor

Trustee fails to carry burden, court affirms pre-petition transfers to cover check-kiting losses not avoidable preference

12 June 2013

The Unsecured Creditors Comm. v. Community Bank(In re Stinson Petroleum Co., Inc.), Case No. 12-60234 (5th Cir., Jan. 7, 2013)

CASE SNAPSHOT

USA, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Legal burden of proof, Liquidation, Trustee, Fifth Circuit

‘Unfinished business’ doctrine in law firm dissolutions is the subject of recent opposing decisions within the same district

15 October 2012

1) Dev. Specialists, Inc. v. Akin Gump Strauss Hauer & Feld LLP, Case No. 1:11-cv-05995 (S.D.N.Y. May 24, 2012)

CASE SNAPSHOT

USA, New York, Insolvency & Restructuring, Litigation, Reed Smith LLP, Limited liability partnership, Contingent fee

Secured blanket lien on inventory trumps reclamation rights

15 October 2012

In re Furrs Supermarkets, Inc., No. 11-01-10779 SA (Bankr. D.N.M. Aug. 15, 2012)

CASE SNAPSHOT

USA, New Mexico, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Unsecured debt, Secured creditor, Unsecured creditor

‘Contingent claim’ not sufficient to establish right of setoff for lift-stay motion

15 October 2012

In re WL Homes LLC, Case No. 09-10571 (Bankr. D. Del. May 16, 2012)

CASE SNAPSHOT

The debtor’s insurer sought to lift the automatic stay in order to setoff $2.2 million in return premiums against potential defense costs that the insurer expected to incur related to certain insurance claims made against the debtor. The court denied the motion, finding that the insurer had not established a right to setoff under either state law or the Bankruptcy Code.

FACTUAL BACKGROUND

USA, Delaware, Insolvency & Restructuring, Insurance, Litigation, Reed Smith LLP, Title 11 of the US Code

Court finds indirect upstream owner exercised de facto control, warrants liability for WARN Act notice violation

15 March 2012

D’Amico, et al. v. Tweeter Opco, LLC and Schultze Asset Management, LLC (In re Tweeter Opco, LLC), 453 B.R. 534 (Bankr. D. Del. 2011)

CASE SNAPSHOT

USA, Delaware, Employment & Labor, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Worker Adjustment and Retraining Notification Act 1988 (USA)

‘Indubitable equivalence’ not proven in proposal to effect partial conveyance of property in full satisfaction of claim

19 December 2011

In re SUD Properties, Inc., Case No. 11-03833-8-RDD (Bankr. E.D.N.C. Aug. 23, 2011)

CASE SNAPSHOT

USA, Insolvency & Restructuring, Litigation, Real Estate, Reed Smith LLP, Debtor, Legal burden of proof