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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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Sanctions? In Delaware Bankruptcy Court? Yes

Posted in Opinions

– But they weren’t as oppressive as my subject line may imply. In a 13 page decision, released April 22, 2016, Judge Gross of the Delaware Bankruptcy Court granted a motion to dismiss an adversary proceeding and sanctioned the Plaintiff – disallowing any further litigation against the defendants in the Bankruptcy Court.  Judge Gross’ opinion is… Continue Reading

THQ v. Starcom – Preference Action Dismissed

Posted in Opinions, Preference Litigation

Summary In yet another straight-forward 15 page decision signed April 18, 2016, 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… Continue Reading

Devonshire PGA Holdings Opinion – Payments for Prior Representation

Posted in Opinions

In a 21 page decision released April 15, 2016, Judge Sontchi of the Delaware Bankruptcy Court ruled on summary judgment regarding a claim submitted by attorneys related to previous litigation.  Judge Sontchi’s opinion is available here (the “Opinion”).  The Opinion was issued in Devonshire PGA Holdings LLC, Case No. 13-12460.  In this case, Potter Anderson &… Continue Reading

Summary Judgment Granted in Favor of New Matco Defendants in NewStarcom Holdings Bankruptcy

Posted in Opinions

In the NewStarcom Holdings bankruptcy matter, Miller v. American Capital Ltd., et al. (In re NewStarcom Holdings, Inc., et al.), Adv. Pro. 10-50063 (CSS) (Bankr. D. Del. March 8, 2016), the Delaware Bankruptcy Court ruled upon various motions, including a motion for summary judgment filed by defendants.  The Chapter 7 Trustee filed an adversary action… Continue Reading

Opinion in AES Thames – A Pro-Defendant Interpretation of the Ordinary Course of Business Defense

Posted in Opinions

In a 9 page decision signed March 3, 2016 in the AES Thames bankruptcy, Judge Carey of the Delaware Bankruptcy Court held that the recipient of allegedly preferential transfers had received the transfers from the Debtor in the ordinary course of business.  He thus concluded that the Trustee could not avoid and recover the transfers… Continue Reading

Opinion in AgFeed USA – Another (Mostly) Successful Motion to Dismiss

Posted in Opinions

On February 19, 2016, Judge Brendan L. Shannon of the Delaware Bankruptcy Court granted in part the motion of K. Ivan F. Gothner (the “Defendant”) to dismiss a complaint filed by JLL Consultants, the Liquidating Trustee (the “Trustee”) in the AgFeed bankruptcy.  The “Opinion” is available here. This is just one of many motions to dismiss adversary… Continue Reading

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