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
The Enforceability of Liquidated Damages Clauses
Recommendations of the ABI Commission to Study the Reform of Chapter 11: Intellectual Property Licenses
Beginning in 2012, a distinguished group of bankruptcy attorneys, academics and judges known as the American Bankruptcy Institute (ABI) Commission to Study the Reform of Chapter 11 (the Commission) held periodic meetings throughout the U.S. to analyze and discuss comprehensive reforms to chapter 11 of the Bankruptcy Code. The results of their analyses and recommendations […]
Structured Dismissals – How They Work Part II: Proving That Cause Exists to Dismiss the Case Under Section 1112(b)
A. Where We Left Off As noted in Part I, movants seeking approval of a structured motion to dismiss must generally prove that: (1) the court has the power to enter an order approving a structured dismissal; (2) “cause” exists to approve the structured dismissal; and (3) the structured dismissal is in the best interest […]
Recommendations of the ABI Commission to Study the Reform of Chapter 11: Preference Claims
From time to time it has proved beneficial to revisit existing bankruptcy statutes, and update them where necessary. The American Bankruptcy Institute established the Commission to Study the Reform of Chapter 11 (the “Commission”) for this precise purpose, and on December 8, 2014 the Commission published its recommendations. If enacted by Congress, some of those […]
Franchisor Strikes Out in Bankruptcy Court
Occasionally, a case comes along that shows how things can go wrong for a franchisor in bankruptcy court. Cumberland Coral, LLC, is just such a case. To learn more about the case and the issues raised for franchisors and franchisees, click on the link below to an article recently published by the online news site Hotel News Now: […]
Determining “value” given by good faith transferee in fraudulent transfer action
The Bankruptcy Code allows a trustee to recover fraudulent transfers made by the debtor prior to bankruptcy. 11 U.S.C. § 548(a). An innocent recipient of a fraudulent transfer is not without a defense, however. The Code allows a transferee that takes in good faith to retain what it received from the debtor in a fraudulent […]
Bankruptcy Court: It Is the Proper Forum for Trade Secret Dispute
You are embroiled in a contentious trade secret lawsuit. In the midst of the litigation, your competitor files for bankruptcy and proposes to sell its assets. Do those assets include the trade secrets? Which court makes that determination? To find out how one bankruptcy court addressed these issues, click on the link below to an […]
How Bankruptcy Affects Franchise Agreements
Few assets in the hospitality industry are more valuable and important than the franchise agreements. The bankruptcy filing of a franchisor or a franchisee can greatly increase the uncertainty of how and when the provisions of a franchise agreement will be enforced. To learn more, click on the link below to an article recently published […]
Structured Dismissals – How They Work Part I: Court Authority for an Alternative Ending
A. Introduction Over the past decade, debtors have increasingly used the protections of Chapter 11 to sell substantially all of their assets in sales under section 363 of the Bankruptcy Code. As a result, post-sale debtors frequently have next to nothing left to reorganize or liquidate. Historically, post-sale debtors had only three options for wrapping up […]
The Power of a Trust Fund Claim: Paying Milk Producers First
The Texas Agricultural Code requires milk processors to hold funds in trust for the benefit of milk producers, including dairies and cooperatives. A trust fund is a powerful tool that will allow a milk producer to be paid ahead of other creditors in the event that a milk processor files bankruptcy. To learn more about […]