Recent Divergent Views on Third-Party Injunctions in Mass Tort Bankruptcies

A third-party injunction in a chapter 11 bankruptcy is generally used to protect a non-bankrupt entity from liability that is shared with, or derivative of, a bankrupt entity.  Third-party injunctions are difficult to obtain in any bankruptcy setting, because bankruptcy laws are generally intended to protect debtors in bankruptcy, not non-debtor affiliates. Increasingly, however, third-party […]

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Option III – Structured Bankruptcy Dismissals are Alive and Well Even After Jevic

Intro Justice Breyer of the Supreme Court previously recognized that a chapter 11 bankruptcy case can generally lead to the following results: reorganization through a confirmed chapter 11 plan, where a deal with creditors can be achieved; conversion of the the case to chapter 7, where no deal with creditors can be achieved; and dismissal […]

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Retailers Beware: Santa Claus is Making a Come Back

Many of us were raised to believe that Santa Claus delivers our gifts before we wake up on Christmas Day.  If you believe, behave, and send your wish list on time, you are virtually certain to receive what you want for Christmas.  As we grow older, some of us (not me) begin to doubt the existence of Santa.  […]

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Texas Court Holds Third-Party Claims “Related to” Bankruptcy Case

In Lone Star State Bank of West Texas v. Waggoner, et al. (In re Waggoner Cattle, LLC), Adv. P. No. 18-02003 (RLJ) (Bankr. N.D. Tex. Nov. 19, 2018), the United States Bankruptcy Court for the Northern District of Texas reminded us that creditor’s claims against third parties can confer jurisdiction on a bankruptcy court when […]

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Is it Harder to Pierce the Corporate Veil of a Limited Liability Company?

Piercing the corporate veil (PCV) is a remedy often pursued by a creditor of an insolvent entity against the entity’s parent or principal. While the corporate veil generally shields a shareholder from the general obligations of his or her corporation, PCV allows a creditor to look beyond the corporate shield and, in certain instances, hold […]

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Could the “Collapsing Doctrine” be Used to Avoid an Extraterritorial Transfer?

In LaMonica v. CEVA Group PLC, et al. (In re CIL Limited), Adversary No. 14-02442 (Bankr. S.D.N.Y June 15, 2018), the Bankruptcy Court for the Southern District of New York was tasked with deciding whether the “collapsing doctrine” could be used to determine the situs of a fraudulent transfer, which was part of an international, […]

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