On Bankruptcy and Mediation
Roundness (photo by Marilyn Swanson) By: Donald L Swanson A study on using round-number offers and precise-number offers in negotiations reaches these two conclusions: Round numbers signal completion—and so, negotiators are more likely to accept a round number offer (e.g., $3,000) than a precise number offer (e.g., $3,278.23); and Precise numbers are perceived as factual and... Continue Reading →
Apathy? (Photo by Marilyn Swanson) By: Donald L Swanson Here’s the latest opinion on a controversial question: In re Franco’s Paving LLC, Case No. 23-20069, Southern Texas Bankruptcy Court, (decided 10/5/2023; Doc. 74). The Question & Answer Voter apathy is a problem in Subchapter V cases. That apathy is in the form of creditors failing or... Continue Reading →
Making it work -- Mandating action (photo by Marilyn Swanson) By Donald L. Swanson Recent expressions of concern about courts mandating mediation reminded me of a mandated mediation process that worked well: the City of Detroit bankruptcy. An illustration of the success of mandated mediation in the Detroit case is this line: The Bankruptcy Judge... Continue Reading →
By: Donald L Swanson Here’s the latest on tort claims against Johnson & Johnson: a $223.8 million judgment against Johnson & Johnson ($37.3 compensatory + $186.5 punitive) in favor of four plaintiffs (i.e., $55.95 million each) is . . . reversed. The reversal opinion is Barden v. Johnson & Johnson, et al., Docket Nos. A-0047-20 thru... Continue Reading →
By: Donald L Swanson In Purdue Pharma, the U.S. Supreme Court grants certiorari on this question: “Whether the Bankruptcy Code authorizes a court to approve, as part of a plan of reorganization under Chapter 11 of the Bankruptcy Code, a release that extinguishes claims held by nondebtors against nondebtor third parties, without the claimants’ consent” (emphasis... Continue Reading →
An old, long and relatively straight road (photo by Marilyn Swanson) By: Donald L Swanson The absolute priority rule [Fn. 1] has been a problem for businesses in bankruptcy—for a very long time! The rule dates back to at least 1899, when the U.S. Supreme Court prevents certain shareholder actions “until the interests of unsecured creditors... Continue Reading →
Backing away? (Photo by Marilyn Swanson) By: Donald L Swanson The opinion is In re Legarde, Case No. 22-12184, Eastern Pennsylvania Bankruptcy Court (issued September 14, 2023; Doc. 112). Facts Debtor claims Creditor raped her. Then, Debtor posts stuff about Creditor on the internet. So, Creditor sues Debtor for defamation, alleging willful and malicious conduct. Bankruptcy... Continue Reading →
A different kind of legacy? (Photo by Marilyn Swanson) By: Donald L Swanson “courts agree that . . . evaluating, asserting, pursuing, and defending litigation claims . . . can satisfy Section 1182(1)(A)’s requirement of ‘commercial or business activities.’” In re Fama-Chiarizia, Case No. 21-42341, E.D.N.Y. Bankruptcy Court, issued 9/15/2023, Doc. 238, at 37. One of... Continue Reading →
From Official Comment to Fed.R.Bankr.P. 9035 By: Donald L Swanson This isn’t going to end well. Looks like our bankruptcy system in these United States is about to take a big hit—to the tune of hundreds of millions of dollars (projected to be around $350 million). And those responsible for creating the debacle are going to... Continue Reading →
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