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    Scanlan v. Eisenberg, et al., 2012 U.S. App. Lexis 1112 (January 20, 2012)
    2012-03-21

    Seventh Circuit reverses district court decision that discretionary beneficiary lacked standing to bring surcharge claim for $200 million in investment losses from investment concentration.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Private Client & Offshore Services, McGuireWoods LLP, Fiduciary, Beneficiary, Standing (law), Trustee, Seventh Circuit
    Authors:
    Dana G. Fitzsimons Jr , Michael H. Barker , Adam M. Damerow , Meghan L. Gehr , Justin F. Trent
    Location:
    USA
    Firm:
    McGuireWoods LLP
    Subcontractors take note - Appellate Division confirms that construction lender has no duty to subcontractor absent express promise to pay
    2012-03-21

    The New Jersey Appellate Division recently ruled in Vollers Excavating and Construction, Inc. v. Citizens Bank of Pennsylvania, Docket No.

    Filed under:
    USA, New Jersey, Banking, Construction, Insolvency & Restructuring, Litigation, Cole Schotz PC, Bankruptcy, General contractor, Subcontractor
    Authors:
    Peter James Herrigel
    Location:
    USA
    Firm:
    Cole Schotz PC
    Carlyle Investment Management LLC et al. v. Carlyle Capital Corporation Limited, 2011 U.S. Dist. Lexis 85710 (Delaware, August 4, 2011)
    2012-03-21

    Forum selection clause in an investment management agreement is valid and enforceable.

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, McGuireWoods LLP, Breach of contract, Investment management, Unjust enrichment, Default (finance), Forum selection clause, Mortgage-backed security
    Authors:
    Dana G. Fitzsimons Jr , Adam M. Damerow , Michael H. Barker , Meghan L. Gehr , Justin F. Trent
    Location:
    USA
    Firm:
    McGuireWoods LLP
    Estate of Badii ex rel. Badii v. Metropolitan Hospice, Inc., C.A. No. 6192-VCP (Del. Ch. Mar. 12, 2012) (Parsons, V.C.)
    2012-03-12

    In this memorandum opinion, the Court of Chancery appointed a receiver for an insolvent corporation deadlocked over how to discharge a tax lien.

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Private Client & Offshore Services, Tax, Potter Anderson & Corroon LLP, Shareholder, Interest, Tax lien
    Location:
    USA
    Firm:
    Potter Anderson & Corroon LLP
    If you aren’t successful, can you still get the success fee?
    2012-03-15

    Yes, on the facts in the Chapter 11 proceedings involving Borders, the insolvent bookseller.

    Jefferies & Company, an investment bank, was retained by Borders to pursue reorganisation strategies, including a possible sale of the company’s assets as a going concern. The bank made considerable efforts in flogging the assets, which resulted in an offer from an interested party, but an actual sale of assets did not happen. Jefferies nevertheless claimed the liquidation fee under its agreement with Borders. The company’s creditors opposed this: no sale, no success fee.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Borden Ladner Gervais LLP, US District Court for the Southern District of New York
    Location:
    USA
    Firm:
    Borden Ladner Gervais LLP
    Sixth Circuit rules that United States lacks standing in case against bankruptcy trustees
    2012-03-13

    The Sixth Circuit in United States v. Carroll, Case No.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Tax, Squire Patton Boggs, Bankruptcy, Sixth Circuit
    Authors:
    Carlee H. Toth
    Location:
    USA
    Firm:
    Squire Patton Boggs
    New bankruptcy proof of claim rules take effect
    2012-03-14

    As seen in the Spring 2012 issue of West Virginia Banker.

    In the wake of the national attention directed towards residential mortgages in the last few years, certain revisions were made to the Federal Rules of Bankruptcy Procedure to address perceived deficiencies in bankruptcy proofs of claim. The rule changes were first proposed in 2009 by the Judicial Conference of the United States and became effective December 1, 2011.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Dinsmore & Shohl LLP, Bankruptcy, Debtor, Mortgage loan, Power of attorney
    Authors:
    Michael R. Proctor
    Location:
    USA
    Firm:
    Dinsmore & Shohl LLP
    Ninth Circuit finds California arbitration law preempted
    2012-03-14

    Relying on the U.S. Supreme Court’s decision inAT&T Mobility LLC v. Concepcion, the Ninth Circuit Court of Appeals recently held that California’s rule against compulsory arbitration of claims for public injunctive relief was preempted by the Federal Arbitration Act (“FAA”). The Court also underscored the key points of an enforceable arbitration clause. Kilgore v. KeyBank (March 7, 2012).

    Case Background

    Filed under:
    USA, California, Arbitration & ADR, Banking, Insolvency & Restructuring, Litigation, Seyfarth Shaw LLP, Federal preemption, Injunction, Arbitration clause, Student loan, Federal Arbitration Act 1926 (USA), Ninth Circuit
    Location:
    USA
    Firm:
    Seyfarth Shaw LLP
    Tenth Circuit holds automatic stay applies to debtor’s appeal of pre-petition action against it, joining most other circuits
    2012-03-15

    TW Telecom Holdings Inc. v. Carolina Internet Ltd., Case No. 11-1068 (10th Cir. Nov. 15, 2011)

    CASE SNAPSHOT

    The Tenth Circuit Court of Appeals reversed its longstanding position, and held that section 362(a) of the Bankruptcy Code does automatically stay the debtor’s appeal of an action commenced against the debtor prior to the bankruptcy filing, regardless of whether the debtor is the appellant or the appellee. This decision aligns the Tenth Circuit with at least nine other circuits.  

    FACTUAL BACKGROUND

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Tenth Circuit
    Location:
    USA
    Firm:
    Reed Smith LLP
    Creation of artificially impaired class to approve cram-down plan is not per se impermissible
    2012-03-15

    In re Village at Camp Bowie I, L.P., 454 B.R. 702 (Bankr. N.D. Texas, 2011)

    CASE SNAPSHOT

    Filed under:
    USA, Texas, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Unsecured debt, Foreclosure, Good faith, Default (finance), Secured creditor, Title 11 of the US Code
    Authors:
    Ann E. Pille
    Location:
    USA
    Firm:
    Reed Smith LLP

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