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    U.S. Supreme Court Rules WARN Claimants/Workers Must Get Priority Over Other Unsecured Creditors In Bankruptcy
    2017-03-23

    Seyfarth Synopsis: A bankruptcy court overseeing an employer’s Chapter 11 bankruptcy proceeding allowed the employer to pay certain unsecured creditors before paying Worker Adjustment And Retraining Notification Act (“WARN”) creditors – workers who had sued the company – monies owed pursuant to a judgment, even though the bulk of the WARN monies owed were for back wages that hold priority over other unsecured claims under the Bankruptcy Code.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Seyfarth Shaw LLP, Worker Adjustment and Retraining Notification Act 1988 (USA), Supreme Court of the United States, United States bankruptcy court
    Authors:
    Gerald L. Maatman, Jr.
    Location:
    USA
    Firm:
    Seyfarth Shaw LLP
    Supreme Court Rules in Favor of Truck Drivers In Challenge To Structured Dismissals in Bankruptcy
    2017-03-22

    We previously wrote about the U.S. Supreme Court’s decision to hear a group of truck drivers’ challenge to the dismissal of a chapter 11 bankruptcy case that was designed to avoid paying the drivers’ claims. Today, the U.S. Supreme Court issued its decision in Czyzewski v.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Shipping & Transport, Freeborn & Peters, Worker Adjustment and Retraining Notification Act 1988 (USA), Supreme Court of the United States
    Authors:
    Devon Eggert
    Location:
    USA
    Firm:
    Freeborn & Peters
    US Supreme Court Reverses a Chapter 11 Structured Dismissal
    2017-03-22

    Czyzewski v. Jevic Holding Corp., No. 15-649 (2017)

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Mayer Brown, Supreme Court of the United States
    Authors:
    Brian Trust , Thomas S. Kiriakos
    Location:
    USA
    Firm:
    Mayer Brown
    Bankruptcy Code—Structured Dismissals
    2017-03-22

    Czyzewski v. Jevic Holding Corp., No. 15-649

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Mayer Brown, Supreme Court of the United States
    Location:
    USA
    Firm:
    Mayer Brown
    From the Top
    2017-01-27

    The U.S. Supreme Court issued two rulings in 2016 involving issues of bankruptcy law.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, White Collar Crime, Jones Day, Credit (finance), American Recovery and Reinvestment Act 2009 (USA), Fair Debt Collection Practices Act 1977 (USA), Supreme Court of the United States, Eleventh Circuit, Third Circuit
    Location:
    USA
    Firm:
    Jones Day
    Supreme Court Hears Oral Argument in Midland Funding v. Johnson
    2017-01-18

    The U.S. Supreme Court heard oral argument Tuesday in Midland Funding v. Johnson. A primary issue before the Court is whether the federal Fair Debt Collection Practices Act is violated by the filing in a Chapter 13 bankruptcy case of a proof of claim representing a debt subject to an expired limitations period. The case originated from the Eleventh Circuit Court of Appeals, which along with its earlier decision in Crawford v. LVNV, held the FDCPA is violated in those instances. Every other Circuit Court of Appeals has since found otherwise.

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Litigation, Maurice Wutscher LLP, Fair Debt Collection Practices Act 1977 (USA), Supreme Court of the United States
    Authors:
    Donald Maurice
    Location:
    USA
    Firm:
    Maurice Wutscher LLP
    Supreme Court to Decide If the Filing of a Faulty Proof of Claim in Bankruptcy Permits a Debtor to Sue Under the FDCPA
    2016-12-12

    The United States Supreme Court will review a decision of the Eleventh Circuit Court of Appeals, Johnson v. Midland Funding, LLC, to resolve a dispute between the circuits regarding whether the Bankruptcy Code provides the exclusive mechanism to determine the validity of a Proof of Claim or whether the filing of a faulty Proof of Claim gives rise to a debtor’s right to sue under the Fair Debt Collection Practices Act (the “FDCPA”). The Bankruptcy Code permits a creditor to file a claim if, among other things, the creditor has a right to payment.

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Litigation, Berger Singerman LLP, Fair Debt Collection Practices Act 1977 (USA), Supreme Court of the United States, Eleventh Circuit
    Authors:
    Fred O. Goldberg
    Location:
    USA
    Firm:
    Berger Singerman LLP
    Supreme Court Weighs Granting Cert on Bankruptcy Issues Involving Surcharge and Voting Rights of Assignee of Insider Claim
    2016-12-05

    The Supreme Court is considering whether to grant review of two bankruptcy cases. On October 3, 2016, the Supreme Court invited the Solicitor General to file briefs expressing the views of the United States. Because the Supreme Court’s justices normally give significant weight to the federal government’s recommendations regarding interpretations of federal statutes (here, the Bankruptcy Code), the Solicitor General’s forthcoming briefs could influence whether the Supreme Court grants cert. on the two notable bankruptcy cases.

    Southwest Securities v. Segner

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Bryan Cave Leighton Paisner (Bryan Cave), Supreme Court of the United States, Fifth Circuit
    Authors:
    Jay Krystinik
    Location:
    USA
    Firm:
    Bryan Cave Leighton Paisner (Bryan Cave)
    SCOTUS to Resolve Circuit Split on Interplay of FDCPA and Bankruptcy Code
    2016-10-25

    On October 11, 2016, the Supreme Court of the United States granted cert in Midland Funding, LLC v. Johnson, No. 16-348 (Oct. Term 2016) to resolve a split among the Circuits as to the FDCPA’s prohibition against deceptive collection practices in the context of filing proofs of claim for debts where a collection action would otherwise be time-barred.

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Litigation, Burr & Forman LLP, Fair Debt Collection Practices Act 1977 (USA), Supreme Court of the United States
    Location:
    USA
    Firm:
    Burr & Forman LLP
    Supreme Court Takes On Chapter 13 Bankruptcy Mess Created by FDCPA Ruling
    2016-10-13

    The Supreme Court of the United States has decided it will review the decision of the U.S. Court of Appeals for the Eleventh Circuit in Johnson v. Midland Funding LLC.

    A link to the docket is available here: Link to Docket.

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Litigation, Maurice Wutscher LLP, Fair Debt Collection Practices Act 1977 (USA), Supreme Court of the United States, Eleventh Circuit
    Authors:
    Brent Yarborough
    Location:
    USA
    Firm:
    Maurice Wutscher LLP

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