A recent decision by the District Court for the Eastern District of North Carolina demonstrates just how important it is for parties asserting rights under the Perishable Agricultural Commodities Act (PACA) to provide proper notice. Failing to correctly provide notice means that the creditor is not entitled to the PACA trust fund protections. In most […]
Providing Notice Under the Perishable Agricultural Commodities Act: Get it Exactly Right, or Risk Not Getting Paid
Setoffs – Cutting Your Losses Both Inside and Outside Bankruptcy
Read Director Joseph Coleman’s article in CRF New on setoffs. Setoffs- Cutting Your Losses Both Inside And Outside Bankruptcy
Springtime is Stern Time
On May 26, 2015, continuing a springtime ritual for bankruptcy lawyers, the Supreme Court issued its latest “progeny of Stern” ruling on the adjudicative authority of the bankruptcy courts. In a 6-3 decision the Court held that “Our precedents make clear that litigants may validly consent to adjudication by the bankruptcy courts.” Wellness Int’l Network, […]
Fifth Circuit has Second Thoughts on Pro-Snax Fees Decision
How would you like to be paid only for work which, in hindsight, unquestionably resulted in a material benefit to your employer? That unsuccessful sales call? Freebie. That account you spent hours trying to collect, but ultimately had to write off? That’s on your time. Thanks. Well, bankruptcy lawyers wouldn’t like that compensation arrangement any […]
Trademark Licensor Rights Trump Bankrupt Licensee
While Donald Trump’s presidential aspirations and “Celebrity Apprentice” hosting duties make for interesting copy, the most recent news concerning him relates to the bankruptcy case of Trump Entertainment and the interaction between bankruptcy and trademark law. To learn more, click on the link below to an article recently published by the online news site Hotel […]
STRUCTURED DISMISSALS – HOW THEY WORK PART III: THE BEST INTERESTS OF THE CREDITORS TEST
A. Where We Left Off Part II of this series focused on the first element of section 1112(b)’s dismissal test: whether “cause” exists for the court to dismiss or convert the case. Once the judge determines that cause exists, the court must dismiss or convert the case. As a result, a party seeking the approval […]
Litigant Consent and the Power of the Bankruptcy Court
The Supreme Court is currently considering the case of Wellness International Network, Ltd. v. Shariff. As discussed in the blog post on February 16, 2015, at issue in the Wellness International Network case is “whether Article III of the United States Constitution permits the exercise of judicial powers of the United States by the bankruptcy […]
Do You Know What is in Your Buyer’s Wallet?
In a recent ruling, the Ninth Circuit held that a seller was liable under the law of fraudulent conveyance to the bankruptcy trustee for the portion of the purchase price funded by a company controlled by the buyer, which was actually a Ponzi scheme, that later filed bankruptcy. Mano-Y&M Ltd. v. Field (In re Mortgage […]
Stern with a Twist: Supreme Court to Consider Constitutional Authority of Bankruptcy Courts
The Supreme Court has an opportunity to clarify the constitutionality of the allocation of power between federal district courts and bankruptcy courts. On July 1, 2014, the Supreme Court granted certiorari in Wellness International Network, Ltd. v. Sharif[1] to address the following: (1) Whether the presence of a subsidiary state property law issue in an […]
The Enforceability of Liquidated Damages Clauses
The enforcement of a liquidated damages clause can mean the difference between money in a party’s pocket with little effort versus a protracted and expensive court battle. To learn more, click on the link below to an article recently published by the online news site Hotel News Now: http://www.hotelnewsnow.com/Article/15177/Enforceability-of-liquidated-damages-clauses