Whether a contract is "executory" such that it can be assumed, rejected, or assigned in bankruptcy is a question infrequently addressed by the circuit courts of appeals. The U.S. Court of Appeals for the Fifth Circuit provided some rare appellate court-level guidance on the question in Matter of Falcon V, L.L.C., 44 F.4th 348 (5th Cir. 2022). The Fifth Circuit affirmed lower-court rulings determining that a surety contract was not executory because the surety had already posted irrevocable surety bonds and did not owe further performance to the debtors.
Businesses in a wide range of industries may now be forced to consider bankruptcy given the unprecedented economic challenges caused by the COVID-19 pandemic. This advisory is designed to provide a high-level view of issues to be considered by human resources when considering filing for Chapter 11 bankruptcy. Please note that this advisory focuses specifically on a Chapter 11 bankruptcy (pursuant to which a business will be reorganized) rather than Chapter 7 bankruptcy (pursuant to which a business will be liquidated).
(S.D. Ind. Mar. 31, 2017)
The district court affirms the bankruptcy court’s ruling in favor of the debtor in the nondischargeability action. The NLRB argued its claim against the debtor should be denied under 11 U.S.C. § 523(a)(6). The court holds that the prepetition administrative ruling finding the debtor acted out of “antiunion animus” did not necessarily satisfy the requisite intent required under § 523(a)(6). Collateral estoppel did not apply. Opinion below.
Judge: Barker
Attorneys for NLRB: Dalford D. Owens , Jr., William R. Warwick
If the National Labor Relations Board (“NLRB”) fines an employer for unlawfully firing workers who tried to unionize, can the employer discharge the fine in bankruptcy, or will the exception to discharge found in Bankruptcy Code section 523(a)(6) apply?
A license agreement “deemed rejected by operation of law” could not be acquired under a court-approved asset purchase agreement, held the U.S. Court of Appeals for the Fifth Circuit on Oct. 29, 2018. In re Provider Meds LLC, 2018 WL 5317445, *2 (5th Cir. Oct. 29, 2018). Although the acquirer claimed “that it purchased a patent license from [the] debtors in bankruptcy sales of their estates,” the court explained that “a rejected executory contract … could not have been transferred by the bankruptcy sales in question … .” Id., at *1.
Doing business in the United States
2021
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Hogan Lovells
Doing business in the United States 2021
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Contents
Introduction1
I.Openness of U.S. markets to foreign investment
2
II.Direct or indirect market entry and choice of entity
8
III. Commercial contracting
20
IV.Labor and employment law considerations
26
V.Immigration laws
34
VI.Intellectual property laws
40
VII. Export control and economic sanction laws
46
VIII. U.S. antitrust laws
56
TAX CONTROVERSY AND LITIGATION NEWSLETTER
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Focus on Tax Controversy
NOVEMBER 2020\\VOLUME 4\\ISSUE 3
IN THIS ISSUE
ARTICLES AND UPDATES Bankruptcy Court's Jurisdiction To Resolve Tax Claims2 FAQs Issued Under The CARES Act Invalid Under The APA8 Tax Court Concludes IRS Failed to Satisfy 675111
Penalty For Failure To File Form 5471 Is Not Divisible 14 Sixth Circuit Rejects Taxpayer's Judicial Estoppel Claim17
ABOUT US Winston & Strawn's Tax Controversy and Litigation Practice 20
Editors 20
Recently, in the case of In re Trump Entertainment Resorts, Bankruptcy No. 14-12103 (Bankr. D. Del. 2014), 2014 Bankr. LEXIS 4439 (Bankr. D. Del. October 20, 2014), the U.S. Bankruptcy Court for the District of Delaware addressed the issue of whether a debtor has the authority to reject an expired collective bargaining agreement pursuant to Section 1113 of the Bankruptcy Code.
The law is the witness and external deposit of our moral life. Its history is the history of the moral development of the race.
Whether a contract is "executory" such that it can be assumed, rejected, or assigned in bankruptcy is a question infrequently addressed by the circuit courts of appeals. The U.S. Court of Appeals for the Third Circuit provided some rare appellate court-level guidance on the question in Spyglass Media Group, LLC v. Bruce Cohen Productions (In re Weinstein Company Holdings LLC), 997 F.3d 497 (3d Cir. 2021).