In Lodge v. Kondaur Capital Corp., Case No. 13-10919 (decided May 8, 2014), the United States Court of Appeals for the Eleventh Circuit decided an issue that it never previously addressed: whether a party could recover damages under 11 U.S.C. § 362(k) for emotional distress resulting from another party’s violation of the automatic stay in bankruptcy. In Lodge, the Court held that such damages were recoverable but could not be recovered in the particular circumstances of that case.

The District Court for the Southern District of New York recently issued an opinion in Davis v. Elliot Management Corp. (In re Lehman Brothers Holdings Inc.), 2014 U.S. Dist. LEXIS 48102 (S.D.N.Y. Mar. 31, 2014) that will have important implications for individual members of official creditor committees in future cases. 

On June 4, 2014, the New York Court of Appeals will hear arguments arising from the bankruptcies of two law firms—Thelen and Coudert Brothers—as to whether the former partners of the bankrupt law firms must turn over profits earned on billable-hour client matters they brought to their new firms.

In In re Mississippi Valley Livestock, Inc., No. 13-1377 (7th Cir. Mar.

The House Judiciary Subcommittee on Regulatory Reform, Commercial, and Antitrust Law recently held hearings regarding certain provisions of the Bankruptcy Code, including the safe harbor from preference and fraudulent conveyance claims for “settlement payments.”

Last week at the American Bankruptcy Institute meeting in Washington, D.C., our firm co-sponsored and participated in a mini-conference on bankruptcies that involve FCC-regulated companies. This was an opportunity to spend a few hours contemplating issues that practicing attorneys rarely get a chance to reflect upon in the midst of heated, multi-party bankruptcy proceedings.

Readers may remember the dramatic restructuring of the GM and Chrysler dealer networks as part of the bankruptcy proceedings for each auto maker in 2009. The state auto dealer franchise statutes and their protection against dealer terminations were summarily preempted by the bankruptcy proceedings and the pre-condition of dealer network reduction for the necessary loans from the federal government to the debtors in possession. Dealers challenged this action in the Court of Claims, and by an April 7, 2014 decision in A&D Auto Sales, Inc. et al. v.

A federal district court has held that a bankruptcy trustee’s action to compel payment of crop insurance proceeds is time-barred by virtue of the Federal Crop Insurance Act (FCIA) and the insurance policies’ arbitration provisions. The trustee brought the action against the Federal Crop Insurance Corporation (FCIC), as reinsurer, and the U.S. Department of Agriculture’s Risk Management Agency (RMA) seeking payment of policy proceeds for the benefit of the debtor’s estate.

In re: Dewey & LeBoeuf LLP, No. 12-12321 (MG) (S.D.N.Y. Bankr., April 10, 2014): As part of the bankruptcy proceedings involving Dewey & LeBoeuf LLP, the U.S. Bankruptcy Court for the Southern District of New York struck Dewey’s defenses to claims brought by its former employees under the federal and New York State WARN Acts. On May 10 and May 14, 2012, Dewey provided letters to its employees warning that their employment could be terminated due to the firm’s financial condition.

Bankruptcy practitioners are anxiously awaiting a U.S. Supreme Court ruling that will determine whether a party can waive its right to trial before an Article III tribunal.