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Delaware Bankruptcy Litigation Information on Corporate Bankruptcy Proceedings in Delaware and Throughout the United States

Category Archives: Opinions

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Sixth Circuit Rejects Bad Faith Cram Down

Posted in Opinions

In the recent decision of Village Green I, GP v. Fed. Nat’l Mortgage Ass’n (In re Village Green I, GP), 2016 WL 325163 (6th Cir. Jan. 27, 2016), the U.S. Court of Appeals for the Sixth Circuit held that the contrived nature of the impairment will cause the plan to fail Section 1129(a)(3)’s good faith requirement. The… Continue Reading

Objections to Applications Which Include Indemnification for Defense of Fees Sustained

Posted in Opinions

In the recent opinion of In re Boomerang Inc., et al., Case No. 15-11247 (Bankr. D. Del. Jan. 29, 2016), the Delaware Bankruptcy Court considered the United States Trustee’s (“UST”) objections to retention applications of several law firms seeking to represent the Official Committee of Unsecured Creditors (the “Committee”) of Boomerang Tube, LLC (the “Debtor”). The UST objected… Continue Reading

Professional Fee Issues in Tropicana Entertainment

Posted in Opinions

In a 10 page opinion released January 5, 2016 in the Tropicana Entertainment bankruptcy (Bank. D. Del. 08-10856), Judge Carey of the Delaware Bankruptcy Court provided  a critical opinion concerning the handling of a dispute arising from two debtors’ division of professional payments.  Judge Carey’s opinion is available here (the “Opinion”). Background In May of 2009… Continue Reading

Judge Sontchi Opines on Committee Counsel Fee Application

Posted in Opinions

In a 7 page decision released December 28, 2015, Judge Sontchi of the Delaware Bankruptcy Court ruled on a professional’s fee application.  Even though the Opinion is not particularly unexpected or unusual, because this occurs so infrequently, I thought it worth noting.  Judge Sontchi’s opinion is available here (the “Opinion”).  The Opinion was issued in Cal… Continue Reading

MIG, LLC – Virgin Islands Law According to Judge Gross

Posted in Opinions

Summary In a 14 page decision, released December 16, 2015, Judge Gross of the Delaware Bankruptcy Court considered made a determination of British Virgin Islands law on limited partnerships.  Judge Gross’ opinion is available here (the “Opinion”). Pursuant to F.R.C.P. 44.1, “In determining foreign law, the court may consider any relevant material or source, including testimony,… Continue Reading

Opinion in AgFeed USA – A Release of all Known and Unknown Causes is Binding, Even in Bankruptcy Court

Posted in Opinions

On December 15, 2015, Judge Brendan L. Shannon of the Delaware Bankruptcy Court granted the motion of Hormel Foods (the “Defendant”) to dismiss a complaint filed by JLL Consultants, the Liquidating Trustee (the “Trustee”) in the AgFeed bankruptcy.  The “Opinion” is available here. Judge Shannon’s opinion, and the dismissal of the complaint, arises entirely because of a… Continue Reading

Revstone Industries – Venue Transfer Granted for a Fraudulent Transfer Adversary Proceeding

Posted in Opinions

On November 2, 2015, Judge Brendan L. Shannon walked a pair of litigants through the factors used in the Third Circuit to determine whether to grant a motion to transfer venue.  In the adversary proceeding Fred C. Caruso v. Fasig-Tipton Co. (In re: Revstone Industries), docketed as Adversary Case No. 14-50468, Judge Shannon issued a… Continue Reading

The Value of a Mobile Asset

Posted in Opinions

On October 19, 2015, Judge Brendan L. Shannon issued an opinion defining the value of a “mobile” asset; in this case, a mobile home.  In an adversary proceeding Welch v. Sun National Bank, docketed as Adversary Case No. 14-50777, Judge Shannon issued a letter opinion analyzing the valuation appropriate for a mobile home (the “Opinion”).… Continue Reading

In re: Hipcricket Inc. Provides a Lesson on the Importance of Defined Terms

Posted in Opinions

On September 29, 2015, Judge Laurie Selber Silverstein of the Delaware Bankruptcy Court ruled on the objection of a distribution trustee to payment of the bankruptcy debtor’s investment banker.  This opinion caught my eye as it is unusual for objections to fee applications to merit written opinions.  The “Opinion” is available here. In this case, the… Continue Reading

Commercial Landlord Dispute – Dismissal for Cause and the Interplay of Sections 349 and 1112

Posted in Commercial Landlords, Opinions

Not uncommonly, the timing of a commercial tenant’s bankruptcy filing will correspond with a landlord seeking to evict the tenant or institute foreclosure proceedings.  What is the effect of a dismissal requested by a commercial debtor after the landlord has successfully prevailed in the underlying bankruptcy case?  The recent decision of Scarborough-St. James Corporation, case… Continue Reading

Guernsey Dairy Opinion – Allowing WARN Claims to Arise May Breach a Director’s Duty

Posted in Opinions

Summary In a 6 page decision denying a motion to dismiss, released September 21, 2015, Judge Gross of the Delaware Bankruptcy Court considered the legal argument of whether a bankruptcy trustee could legally pursue a recovery against a company’s directors for allowing a WARN claim to arise.  Judge Gross’ opinion is available here (the “Opinion”).… Continue Reading

SuperMedia Decision – Withholding Information Rarely Ends Well

Posted in Opinions

Summary In a 13 page decision released September 3, 2015, Judge Gross of the Delaware Bankruptcy Court examined the results of Yellow Pages Photos, Inc. (“YPPI”) failing to disclose agreements that directly affected its claim against the Debtors.  Judge Gross’ opinion is available here (the “Opinion”). The Court had entered an order which held that the Debtor, SuperMedia… Continue Reading

Judge Silverstein’s First Published Opinion – Scarborough-St. James Corporation

Posted in Opinions

On August 18, 2015, Judge Laurie Selber Silverstein of the Delaware Bankruptcy Court issued her first written opinion in the bankruptcy case Scarborough-St. James Corporation.  In her 17 page opinion, Judge Silverstein addressed a long-running dispute between a landlord and the debtor. Neither the Landlord nor the Debtor were original parties to the lease agreement.  However,… Continue Reading

Trump Entertainment – Automatic Stay v. Norris-LaGuardia Act

Posted in Opinions

In a 23 page opinion released July 21, 2015 in the Trump Entertainment Resorts case (Bank. D. Del. 14-12103), Judge Kevin Gross of the Delaware Bankruptcy Court opined upon the interaction of the Bankruptcy Code’s automatic stay and the Norris-LaGuardia Act (“NLA”).  Judge Gross’ opinion is available here (the “Opinion”). We have previously posted about… Continue Reading

Nortel Opinion Interprets Supreme Court’s Wellness Opinion

Posted in Opinions

Summary In a 12 page decision released June 2, 2015, Judge Gross of the Delaware Bankruptcy Court gives us our first Delaware specific insight into how the U.S. Supreme Court’s Wellness opinion will be interpreted.  Judge Gross’ opinion is available here (the “Opinion”).  The Opinion was issued in the adversary proceeding SNMP Research Int’l. v.… Continue Reading

United States Supreme Court Expands Power of Bankruptcy Courts- Wellness Int’l v. Sharif

Posted in Opinions

Holding: Article III permits bankruptcy judges to adjudicate Stern claims with the parties’ knowing and voluntary consent.  Consent by parties also need not be in writing but can be determined through conduct. In the recent United States Supreme Court decision of Wellness International Network v. Sharif, the High Court entered a very significant decision which expanded the… Continue Reading