Providing an important reminder about the intersection of privacy law and bankruptcy, a bankruptcy judge has ordered the appointment of a consumer privacy ombudsman in the Chapter 11 case filed by Crumbs Bake Shop.

Why it matters

Why it matters

Sexual abuse by the same priest over a six-year period did not amount to a single occurrence under a general liability policy, according to New York’s highest court, triggering a deductible payment for each act of abuse. The policyholder was essentially left uninsured.

The United States Supreme Court, in the case of Radlax Gateway Hotel, LLC v. Amalgamated Bank (“Radlax”), ruled that secured creditors have the same right to credit bid in collateral sales under a plan of reorganization as they do in sales under Section 363 of the Bankruptcy Code (“Section 363 Sales”).

The RadioShack bankruptcy case has already drawn the attention of both state and federal regulators for potential privacy violations, and now the company faces a new issue: $43 million worth of unused gift cards.

Texas Attorney General Ken Paxton launched an adversary proceeding in the bankruptcy case seeking a declaratory judgment that any unused gift cards should receive priority up to $2,775 per card under Bankruptcy Code Section 507(a)(7). RadioShack gift cards did not expire and the face of the cards did not disclose an expiration date, the AG told the court.

Facing objections from the Federal Trade Commission and the Attorneys General of 23 states, RadioShack in its bankruptcy filing, has agreed to destroy the bulk of the personal customer information maintained in its files.

As part of its Chapter 11 petition, the company offered all of its assets for sale—including data on roughly 117 million customers, such as e-mail addresses, telephone numbers, and credit and debit card information.