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

１ 事案の概要

本件は、破産者が自動車の販売会社（A社）から購入した 自動車（本件自動車）について、契約に基づいて、自動車の 購入代金を立替払いした信販会社（B社）が、本件自動車に かかる所有権留保に基づき、自動車を破産者から引き揚げ、 本件自動車を査定し、破産者に不足額（未払の立替払金債 権等と自動車の評価額の差額）を通知した行為について、破 産管財人が、破産法162条1項1号により否認権の行使を主 張した事案です。

大まかな事実関係は、以下のとおりです。

① 破産者、A社（販売会社）及びB社（信販会社）の三者 で立替払契約締結（破産者が自己に代わってA社に 立替払することをB社に委託し、B社がA社に自動車 購入代金を一括して支払う。破産者はB社に対して毎 月分割で立替払分に分割手数料を加算した金額を支 払う。「本件立替払契約」。）。

本件立替払契約には、以下の条項がある。

（ア）破産者は、自動車の登録名義のいかんを問わず、A 社に留保されている自動車の所有権が、B社がA社に 立替払したときにはB社に移転し、立替払契約に基づ く債務を完済するまでB社に留保されることを承諾す る。

Timeliness:

Ohio Farmers Insurance Co. v. City of Akron, Case Nos. 25642, 25725 (Ohio Ct. App. July 20, 2011) (affirming confirmation of award; panel properly found “good cause” for delay in seeking confirmation; rule providing one year to seek confirmation deemed not a statute of limitations).

Partiality:

Summary

In a 24 page decision signed July 8, 2011, Judge Walrath of the Delaware Bankruptcy Court granted a motion to for summary judgment, holding a non-debtor defendant liable with the Debtor as a single employer for alleged WARN Act violations. Judge Walrath’s opinion is available here (the “Opinion”).

Background

Two recent opinions from separate federal courts of appeal upheld the dismissal of lawsuits by sophisticated investors that suffered losses in the auction rate securities ("ARS") market against the securities broker-dealers that allegedly fraudulently induced the purchase of the ARS.1

The Bottom Line:

One consequence of the depressed real estate market has been numerous Chapter 11 bankruptcy cases wherein the debtor seeks confirmation of a “dirt-for-debt” plan. In such a plan, instead of paying the secured creditor the value of the real property securing the debt through restructured loan terms, the debtor proposes to convey part or all of the real property securing the debt to the creditor in full satisfaction of its secured claim.

In this memorandum opinion, the Court of Chancery denied the plaintiffs’ (Roseton OL LLC and Danskammer OL, LLC) motion seeking to temporarily restrain the consummation of a transaction pursuant to which defendant Dynegy Holdings, Inc. (“DHI”) would transfer its most profitable power plants from existing subsidiaries to new bankruptcy remote subsidiaries.

IN RE: GOLF 255, INC. (July 22, 2011)

In its ruling on Wednesday 27 July in the matter of Belmont Park Investments PTY Ltd v BNY Corporate Trustee Services Lte & Anor [2011] UKSC 38 the Supreme Court of the United Kingdom has dismissed the appeal by Lehman Brothers Special Finance Inc. ("LSF") relating to the validity of an alleged anti-deprivation provision known as a 'flip' provision which, has the effect of altering the payment priority order as a result of a bankruptcy of the relevant swap counterparty, in this case Lehman Brothers.