Business Law Insolvency Law Committee

In appropriate circumstances, reverse veil piercing is an available remedy for a judgment creditor who could not collect directly from the judgment debtor. Read more

Court dismissed chapter 7 trustee's constructive fraudulent conveyance claim against defendant electrical company and rejected trustee's theory that defendant failed to provide services to a property owned by a third party with whom debtor had contracted to manage a portfolio of properties that included the subject property. Read more

A legal fee award entered in a civil action that is litigated parallel to and intertwined with ongoing dissolution proceedings comes within the scope of 11 U.S.C. section 523(a)(15). Read more

Under Massachusetts law, a pharmacist correctly filling a prescription could not be held liable for damages suffered by a patient under a claim for breach of implied warranty under the UCC. Read more

In Kasolas v. Nicholson (In re Fox Ortega Enterprises, Inc.), -- B.R. --, 2021 WL 1605169 (Bankr. N.D. Cal. 2021), the bankruptcy court ruled on summary judgment that delivery of product by the debtor to its customer, who had previously ordered and paid for the product, constituted an avoidable fraudulent conveyance because (1) the delivery came after threats by the customer relating to the non-delivery of the product, and (2) the debtor’s principal, later, in a criminal proceeding, conceded that the operation of the business was, at least in part, a Ponzi scheme. Read more

The United States Bankruptcy Court for the Central District of California denied the motion of Chapter 11 debtor and debtor-in-possession Innerline Engineering, Inc. to extend the time to file its case initiation documents, notwithstanding that the motion was filed timely and submitted on the court’s approved local bankruptcy form. Read more

In In re Arno Arutyunyan, 2021 WL 755770 (B.A.P. 9th Cir. 2021), the United States Bankruptcy Appellate Panel of the Ninth Circuit (BAP) affirmed the bankruptcy court’s dismissal of the creditor’s adversary complaint on grounds that it was filed late. Read more

In In re Cambridge Land Co. II, LLC, 626 B.R. 319 (B.A.P. 9th Cir. 2021), defendants in a state court legal malpractice action filed by bankrupt limited liability companies (LLCs) appealed bankruptcy court orders reopening the LLCs’ previously dismissed Chapter 11 cases for administrative purposes only. Read more

California's Rosenthal Act (similar to but broader than FDCPA) can apply to nonjudicial foreclosures. Read more

Court rejected a creditor's request for retroactive stay relief but granted relief to re-file and prosecute a lawsuit creditor had filed against debtor during debtor's prior bankruptcy case in which creditor obtained a default judgment. Read more