Case Updates

Summary: A bankruptcy court in Delaware has held that a broadly-worded release contained in a confirmed Chapter 11 plan insulated a group of LBO participants from fraudulent transfer liability, since the potential defendants were not expressly carved out from the scope of the release. [In re Samson Resources Corp., 2018 Westlaw 4182447 (Bankr. D. Del.).] Read more

M obtains decree in Belarus finding the residence of child is Belarus, where M resides. F, unaware of Belarus action or decree, files custody petition in CA.M successfully moves to quash service of California action under FC 3426(a), the “simultaneous proceedings” statute. Read more

Summary: A bankruptcy court in Washington has held that after a creditor assisted a bankruptcy trustee's prosecution of a fraudulent transfer claim against a bank, the creditor was entitled to seek an award of administrative expenses for its "substantial contributions" to the Chapter 7 estate. [In re Maust Transport, Inc., 2018 Westlaw 4488712 (Bankr. W.D. Wash.).] Read more

Summary: A bankruptcy court in Texas has held that two individual refinancing lenders could not claim fire insurance proceeds stemming from the destruction of mortgage property because the trustee's status as a hypothetical bona fide purchaser defeated the refinancing lenders' unperfected deed of trust. [In re Dahlin, 2018 Westlaw 4154759 (Bankr. S.D. Tex.).] Read more

Summary: A district court in Delaware has held that disparate "gifts" from senior secured creditors to two different classes of unsecured creditors does not unfairly discriminate against the least-favored class and does not violate the "absolute priority" rule in a Chapter 11 reorganization. [In re Nuverra Environmental Solutions, Inc., 2018 Westlaw 3991471 (D. Del.).] Read more

Summary: A California appellate court has held that a reverse triangular merger did not violate an anti-assignment provision in a lease because the original corporate tenant still nominally retained the leasehold, even though control over the property had passed to the original tenant's new parent corporation. [North Valley Mall, LLC vs. Longs Drug Store S California, LLC, 2018 Westlaw 4579856 (Cal.App.).] Read more

Summary: A California appellate court has held that the language of a deed of trust did not authorize a separate award of attorney’s fee in favor of a prevailing lender, and the unsuccessful plaintiffs were not judicially estopped by their own prayer for fees. [Hart vs. Clear Recon Corp., 2018 Westlaw 4443242 (Cal.App.).] Read more

Summary: The Fifth Circuit has held that a key condition precedent to a debt buyer’s obligation to perform had not been satisfied, due to the seller’s breach of its representations and warranties; further, the buyer did not have to show that it was materially prejudiced by the seller’s breach. [Conn Credit I, L.P., vs. TF Loanco III, L.L.C., 2018 Westlaw 4292022 (5th Cir.).] Read more

Summary: A California appellate court has held that an award of attorney’s fees in favor of the prevailing defendants against a plaintiff borrower had to be added to the loan balance and should not have been entered as a separate award of damages. [Chacker vs. JPMorgan Chase Bank, N.A., 2018 Westlaw 4474732 (Cal. App.).] Read more

Summary: A district court in Hawai’i has held that the payment of a judgment in favor of an unsecured creditor was preferential because neither the filing of a lis pendens nor the creation of a consensual escrow had created a perfected lien in favor of the creditor. [In re Price, 2018 Westlaw 3213603 (D. Hawai’i.).] Read more