Lessons in Local Rules and Civility

Early this week, a California Bankruptcy Court schooled counsel on abiding by local rules, avoiding gamesmanship, and maintaining a level of civility in litigation proceedings. These lessons arose in the context of an adversary proceeding in which counsel filed an emergency motion for a continuance of the deadline to respond to a complaint following retention of new counsel.

Lesson #1: Check for Typos

Filed under:
USA, California, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, United States bankruptcy court
Location:
USA
Firm:
Weil Gotshal & Manges LLP
Whose Rules Are They Anyway? Even in District Court, the Bankruptcy Rules Apply to Proceedings Arising Under Chapter 11

It is spring and the stands will soon ring with the oft-heard refrain, the clarion call of players and fans alike, “Hey ump, read the rules!”  In Rosenberg v.

Filed under:
USA, Arbitration & ADR, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Bankruptcy, Eleventh Circuit
Location:
USA
Firm:
Weil Gotshal & Manges LLP
ASARCO Update: Fee Premium Disallowed Under Baker Botts v. ASARCO and Boomerang Tube

On February 25, 2016 we discussed decisions by two judges of the United States Bankruptcy Court for the District of Delaware adopting and expanding upon Judge Walrath’s decision in In re Boomerang Tube, Inc., which held that a bankruptcy estate may not compensate professionals under

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USA, Delaware, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, United States bankruptcy court, US District Court for District of Delaware
Location:
USA
Firm:
Weil Gotshal & Manges LLP
Don’t Go Chasing (Debtor-Affiliate) Waterfalls: Second Circuit Applies 510(b) Subordination to Contribution Claims Arising from the Securities of an Affiliate of a Debtor

In a decision with significant implications for investors and underwriters alike, the Court of Appeals for the Second Circuit has held that contribution claims arising from the purchase and sale of a security of an affiliate of the debtor can and should be subordinated under section 51

Filed under:
USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Debtor, Security (finance), Second Circuit
Location:
USA
Firm:
Weil Gotshal & Manges LLP
No Authorization? No Problem. Court Finds that Unauthorized Loan Is Entitled to Priority Status

In 

Filed under:
USA, New York, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Debtor, United States bankruptcy court
Location:
USA
Firm:
Weil Gotshal & Manges LLP
In Considering Motions to Sever, District Courts Might Effectively Shift the Burden to Plaintiffs to Show Why the Automatic Stay Should Not Be Extended to Nondebtor Defendants

“Round and around and around and around we go // Oh now tell me, now tell me, now tell me now you know // … It takes me all the way // I want [to extend the automatic] stay” – Rihanna (as modified)

Filed under:
USA, Louisiana, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP
Location:
USA
Firm:
Weil Gotshal & Manges LLP
Chapter 15 for all: SDNY bankruptcy court holds that indenture governed by New York law constitutes “property in the United States” under section 109(a)

Section 109(a) of the Bankruptcy Code requires debtors to either reside or have a domicile, place of business, or property in the United States.  A split of authority exists whether a foreign debtor seeking recognition of its foreign proceeding under chapter 15 of the Bankruptcy Code must satisfy these requirements.&nb

Filed under:
USA, New York, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, United States bankruptcy court, US District Court for SDNY
Location:
USA
Firm:
Weil Gotshal & Manges LLP
Nondebtor alter egos don’t automatically benefit from the automatic stay, says New York’s Eastern District

“[T]he automatic stay is automatic as applied to a debtor because that is what the statute says.
As to non-debtors, it is relief that is available, but it is not automatic.”
– Judge Brian M. Cogan (E.D.N.Y.), August 20, 2015

Filed under:
USA, New York, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Debtor
Location:
USA
Firm:
Weil Gotshal & Manges LLP
“Conduct” test now the rule in the Seventh Circuit – but we still don’t know how the Seventh Circuit will deal with due process concerns

It’s hard to believe, but until now, the Seventh Circuit has never weighed in on the issue of when a claim arises in a bankruptcy case.  As a result, the Seventh Circuit has had the luxury of sitting back, watching the Third Circuit go from Frenville to 

Filed under:
USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Seventh Circuit
Location:
USA
Firm:
Weil Gotshal & Manges LLP
Why won’t the courts apply the plain language of section 1141(C)? Second Circuit misses the chance to get it right in Northern New England Telephone Operations

Key Takeaway:  Second Circuit allows secured
creditors to opt out of chapter 11 and preserve their liens from discharge.

Filed under:
USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Second Circuit
Location:
USA
Firm:
Weil Gotshal & Manges LLP