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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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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

Orchard Supply – The Trouble With Motions to Dismiss

Posted in Opinions

Summary In a 14 page decision released May 12, 2015, Judge Sontchi of the Delaware Bankruptcy Court illustrated why even perfect motions to dismiss may not be worth filing.  Judge Sontchi’s opinion is available here (the “Opinion”).  The Opinion was issued in the adversary proceeding Alamo Group, LLC and Kirin Alamo, LLC v. A&G Realty Partners,… Continue Reading

Court Reiterates that Debtor’s Setoff Rights Trump those of Claimant

Posted in Opinions

In the bankruptcy case of ADI Liquidation, Inc. (f/k/a AWI Delaware, Inc.), Bankr. No. 14-12092 (KJC), the Court considered a motion by creditor Western Family Foods, Inc. (“WFFI”) for relief from the automatic stay to exercise its setoff rights against its general unsecured claim against ADI Liquidation, Inc., et al. (the “Debtors”).  Meanwhile, the Debtors… Continue Reading

Filene’s Basement Decision Interprets Lease Rejection Damages Statute

Posted in Opinions

Summary In a 22 page decision released April 20, 2015, Judge Carey of the Delaware Bankruptcy Court provided guidance as to the calculation of lease rejection damages.  Judge Carey’s opinion is available here (the “Opinion”).  The interpretation of 11 U.S.C. Section 502(b)(6) differs depending on the court which is addressing the issue.  This is an… Continue Reading

Trump Decision – Administrative Claims of Employees

Posted in Opinions

In an 11 page opinion (the “Opinion”) released March 9, 2015, in the Trump Entertainment Resorts, Inc. bankruptcy (Case No. 14-12103), Judge Gross interpreted Bankruptcy Code 503(b)(1)(A) in approving the reclassification of a claim from a priority claim to a general unsecured claim.  The Opinion is available here.  Administrative claims are an integral part of… Continue Reading

The Challenge of Pro Se Litigants

Posted in Opinions

In a fact-heavy 16 page opinion issued by Judge Shannon on March 2, 2015, we get a clear picture of the challenge faced by litigants when opposing aggressive pro-se litigants.  In Bishop v. Fannie Mae, Adv. Pro. No. 12-50912, the pro-se plaintiff was a chapter 13 debtor who was attempting to secure relief from his… Continue Reading

Trump Wins Relief From Stay – No More Trump Casino in AC?

Posted in Opinions

In a 21 page opinion (the “Opinion”) released February 20, 2015, in the Trump Entertainment Resorts, Inc bankruptcy (Case No. 14-12103), Judge Gross, granted the motion of Trump AC Casino Marks, LLC (“Trump AC”) to modify the automatic stay to allow litigation to proceed, which could result in termination of their license with the Debtors. … Continue Reading

A Default is a Default, no Matter the Size?

Posted in Opinions

In an 11 page opinion issued January 30, 2015 in the TPOP bankruptcy (13-11831), Judge Shannon held that GM did not lose the ability to enforce its contracted right to repayment just because the default was “immaterial” according to the Debtor.  The Opinion is available here. Background The Debtor, Metavation (the case name was later… Continue Reading

Lessons from Chapter 13 – When is 8% Not Really 8%

Posted in Opinions

In ruling on a very unfortunate situation (more on that below), Judge Shannon issued an opinion on July 24, 2014 in the Aro bankruptcy, holding that a state court decision concerning the validity of a lien cannot be challenged in Bankruptcy Court.  In the opinion in this case issued on January 22, 2015 (the “Opinion”),… Continue Reading

Tri-Valley Corp. Bankruptcy – Preference Complaint Dismissed – Leave to Amend Granted

Posted in Opinions

Summary In a straight-forward 11 page decision signed January 7, 2015, Judge Walrath of the Delaware Bankruptcy Court granted a defendant’s motion to dismiss a preference complaint, but granted the plaintiff leave to amend. Judge Walrath’s opinion is available here (the “Opinion”).  Numerous posts on this blog discuss other opinions issued by the Delaware Bankruptcy Court… Continue Reading