When Can a Subsidiary Be Liable for the Actions of Its Owners?

The Big Easy. A city overflowing with art, food, fun, and pride. A place where you can experience the immensity and power of a hurricane (both the rum-based libation and the coastal weather event). And home to one of the most popular travel destinations in the United States—the French Quarter. In this installment of the Weil Bankruptcy Blog, we take you to Bourbon Street and review a decision of the Fifth Circuit Court of Appeals resolving a dispute between two companies regarding (fittingly) the assumption of a lease for a saloon on Bourbon Street.

Do you serve on your condominium’s board as a fun way to meet your neighbors and test out your governance skills? What seems like a low-commitment diversion can balloon into a stressful time suck – or worse.  You may be held personally liable for breaching fiduciary duties to your condo.  And if you fall into really bad luck and end up in bankruptcy, you may not even be able to discharge debts for such liability, as a recent Fifth Circuit decision reminds us.  

Depending on the nature of its business, a debtor may encounter issues associated with the Perishable Agricultural Commodities Act (“PACA”), a statue designed to protect sellers of perishable produce. Recently, in Kingdom Fresh Produce, Inc. v.

Practitioners that exclusively represent clients in large scale restructurings and chapter 11 reorganizations may be used to the debtor remaining in place with senior management continuing to oversee the day to day operations of the company and overseeing the debtor’s reorganization case.  It may seem strange then to such practitioners that, unlike in chapter 11 cases, the debtor in a chapter 7 case often has only a limited role in its own bankruptcy case after the initial debtor interview and the section 341 meeting of creditors.  In a chapter 7 case, a trustee is appointed and i

When it comes to releases, plan proponents generally agree the broader the better.  But when plan proponents include far reaching and all-encompassing language in hopes of securing a release for every possible claim under the sun, they sometimes overlook the very claims for which they may actual want a release.  This was the case in a recent decision,