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Current decisions, news and commentary regarding commercial bankruptcy cases in Delaware.
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The United States Bankruptcy Court for the District of Delaware announces the retirement of Hon. Kevin J. Carey, effective August 31, 2019. This is a bittersweet moment for the Court. We sincerely thank Judge Carey for his exemplary service to the Court, the lawyers and the litigants for the last 19 years (5 years as a member of the United States Bankruptcy Court for the Eastern District of Pennsylvania and 14 years as a member of the Delaware Bankruptcy Court). Judge Carey is a fantastic judge, possesses excellent judicial temperament, writes scholarly opinions and is a warm and helpful colleague. We are saddened he is leaving us. We are also pleased that Judge Carey will be moving on to what we expect will be an exciting and rewarding time for him. We will be formally honoring Judge Carey’s service to the judiciary in the future. In the meantime, we thank him and wish him the very best.
To view this release on the court's website click here.
Cardiac-device developer Angel Medical Systems Inc., represented by Jeffrey R. Waxman and Eric J. Monzo of @MorrisJamesLLP, won court approval Friday to begin tapping a loan of up to $2.5 million to fund operations while under chapter 11 protection.
In response, class attorney Jeffrey R. Waxman of Morris James LLP said the objection in the bankruptcy discovery motion was intended to close a gap in the New York protective order that could prejudice anonymous accusers. "We want an order from a federal court which specifically precludes [Weinstein] from using any such names or emails that identify such persons," Waxman said of the anonymous accusers.
The plaintiffs in the proposed New York class action are represented by Elizabeth A. Fegan, Emily Brown, Steve W. Berman, Shelby Smith and Jason Zweig of Hagens Berman Sobol Shapiro LLP, Jeffrey R. Waxman of Morris James LLP and Edward S. Weisfelner and Howard S. Steel of Brown Rudnick LLP.
The 2019 U.S. News – Best Lawyers® annual guide of the “Best Law Firms" recognizes Morris James as a "Best Law Firm" in the national category of Litigation-Mergers & Acquisitions as well as 25 additional categories for their Delaware practices. More ›
Morris James Takes the Lead in Delaware Today Top Lawyers Survey
Morris James LLP is pleased to announce that the lawyers listed below were recognized as Top Lawyers by their peers in a survey of Delaware attorneys conducted by Delaware Today magazine. Morris James had more top lawyers and top vote-getters than any other law firm in Delaware. 39 attorneys were named in 20 practice areas. More ›
Brett D. Fallon will speak at the North Carolina Bar Association 41st Annual Bankruptcy Institute on Friday, November 2, 2018 in Pinehurst, North Carolina. He will present, in conjunction with Lisa Sumner, a partner at Nexsen Pruet in Raleigh, North Carolina, the program “Go Your Own Way” versus “I Fought the Law (and the Law Won)”: Intercreditor Agreements Battle the Bankruptcy Code". The program addresses how Bankruptcy Courts treat creditor agreements whose provisions may be contrary to principles of the Bankruptcy Code. Can creditors successfully have it their own way in bankruptcy using prepetition contract provisions or does the Bankruptcy Code rule the day?
The 41st Annual Bankruptcy Institute features speakers covering diverse topics of timely bankruptcy issues as well as updates for practitioners on the latest developments. A keynote address delivered by Professor Jacoby of UNC School of Law takes a look at The Weinstein Company filing and its issues relevant to all types of bankruptcy.
Brett D. Fallon is a partner in Morris James' Bankruptcy and Creditors' Rights practice and has been practicing before Delaware Courts for over 30 years. He has represented debtors and creditors of all types, particularly large dollar secured and unsecured creditors, creditor committees and both plaintiffs and defendants in post-confirmation actions brought by litigation and liquidation trustees. trustees.
Corporate governance battles spill into bankruptcy courts and at times serve as the genesis for bankruptcy petition filings. For example, recently the Fifth Circuit in In re Franchise Services of North America Inc. addressed a motion to dismiss a bankruptcy petition on the basis that under the state law governing the would-be corporate debtor, the petition filing was unauthorized and invalid. This article discusses the Bankruptcy Code, federalism, corporate law and public policy. These routinely surface during disputes over whether a corporate debtor’s bankruptcy petition constitutes a valid authorized corporate action that should be allowed to proceed or, in the alternative, whether the bankruptcy petition is unauthorized and invalid and should be dismissed. More ›
Morris James was named a top work place for mid-sized employers in Delaware for the eleventh consecutive year. This year's top workplace honor makes Morris James the only law firm in Delaware to be consistently top-ranked in the mid-sized employers category for the past eleven years. More ›
Proceed with Caution: Although a False Oral Statement about a Single Asset Constitutes a Statement Respecting the Debtor's Financial Condition for Section 523(a) Purposes, the Associated Debt Can Still be Discharged
The Supreme Court held that a statement about a single asset can be a "statement respecting the debtor's financial condition" and instructed that if the statement was not in writing, then the associated debt may be discharged even if the statement was false. A copy of the opinion may be found here. More ›
Thirty Morris James attorneys in thirty-two practice areas were selected by their peers for inclusion in The Best Lawyers in America© 2019 edition. Additionally, three of those attorneys were named “Lawyer of the Year” for their respective practices, including David H. Williams for Education Law, Employment Law – Management, and Litigation – Labor and Employment, Richard Galperin for Healthcare Law, Medical Malpractice - Defendants, and Personal Injury Litigation – Defendants, and John M. Bloxom, IV for Real Estate. Congratulations to Kenneth L. Dorsney, Shannon S. Frazier, Kevin G. Healy, Eric J. Monzo, John H. Newcomer, Jr., K. Tyler O’Connell and Jill Spevack Di Sciullo for being recognized for the first time. More ›
Breaking Up is Hard to Do: No Administrative Expense Warranted for Purchaser's Expenses Incurred During Failed Effort to Obtain Regulatory Approval
On August 1, 2018, Chief Judge Christopher Sontchi issued another opinion in the Energy Future Holdings bankruptcy cases. The opinion addresses the question whether failed purchaser NextEra Energy, Inc. ("NextEra") is entitled to a $60 million administrative expense claim related to its fees and expenses incurred in attempting to close the transaction with the Debtors for control of the Debtors’ economic interest in Oncor. The Bankruptcy Court held that it is not. A copy of the opinion may be found here. More ›
The United States Senate confirmed Colm F. Connolly and Maryellen Noreika as US District Judges for the District of Delaware. Connolly and Noreika will fill the two vacancies resulting from the retirements of Judges Sue L. Robinson and Gregory M. Sleet.
Bankruptcy Court Has Subject Matter and Non-Core Jurisdiction Over Action to Recover Debtor’s Accounts Receivable
On July 2, 2018, Chief Bankruptcy Judge Sontchi issued an opinion in connection with the chapter 7 liquidation of Pennysaver USA Publishing, LLC regarding whether the bankruptcy court has subject matter jurisdiction over the Trustee's action to recover disputed accounts receivable as part of the liquidation of the case. The opinion is captioned Beskrone, Chapter 7 Trustee v. Int’l Educ. Corp. (Adv. Pro. No. 17-50523 CSS) and a copy can be found here. More ›
In a non-precedential opinion filed on July 17, 2018, a copy of which may be found here, the Third Circuit Court of Appeals affirmed the rulings of the Delaware District Court and Delaware Bankruptcy Court, which approved an asset purchase agreement over a landlord's objection and allowed debtors Haggen Holdings, LLC and its affiliates to sell certain assets. The issue turned on the application of Bankruptcy Code § 365(f)(1) to a "profit sharing plan" clause in a commercial lease and whether it was an unenforceable anti-assignment provision. More ›
On July 6, 2018, Bankruptcy Judge Kevin Carey issued an opinion in connection with the Katy Industries Inc. bankruptcies that dismissed claims against the sole bidder (and ultimately successful asset purchaser) and others seeking to recharacterize or subordinate, avoid and recover a portion of the bidder's credit bid used to purchase the debtors' assets. There was no practical, useful remedy that resulted in any recovery to the estate. Nether recharacterization nor subordination would enhance any potential distribution to creditors. A copy of the opinion may be found here. More ›