On Bankruptcy and Mediation
By: Donald L Swanson Domestic support obligations (e.g., alimony and child support) cannot be discharged in a Chapter 13 bankruptcy. Property settlement debts, by contrast, may be discharged in Chapter 13. Question and an Illustration Answer Question: What distinguishes a domestic support obligation from a property settlement debt in Chapter 13? Two recent opinions out of South... Continue Reading →
By: Donald L. Swanson Sometimes it’s helpful, in understanding our own situation, to look at someone else’s. Mediation is a common tool for resolving commercial disputes in New Zealand. A 2017 study of mediation in New Zealand reveals how it's done there: “From Anecdote to Evidence: The New Zealand Commercial Mediation Market [Fn. 1]. General Findings... Continue Reading →
By: Donald L Swanson The Office of the US Trustee administers the bankruptcy system in these United States. To fund its efforts, the US Trustee receives quarterly fees from Chapter 11 debtors, which fees are a major (and often a problematic) expense for debtor’s to pay. Back in October 2017, Congress increased the amounts of such... Continue Reading →
By: Donald L Swanson Settlement = Assessment of Risks + Math I made up this unsophisticated formula decades ago to explain what happens when a negotiated settlement occurs in a commercial dispute. What I’ve found, since then, is that the formula holds true in the vast majority of cases—even when emotions and tempers are on edge.... Continue Reading →
By: Donald L Swanson What should the U.S. Supreme Court Justices do when, (i) they grant certiorari to resolve a circuit split on whether a rule of law is valid, but (ii) no party to the appeal argues in favor of that rule? That’s exactly the circumstances in Rodriguez v. FDIC, Supreme Court Case No. 18-1269... Continue Reading →
By: Donald L Swanson Let’s say that a mediation among four parties or more is a “multi-party” mediation. Caucus Inadequacy Here’s how a caucus format works—inadequately—in a mediation among four parties: the mediation starts at 9:00 a.m. with a half-hour joint session to set the rules and format, whereupon, the parties split into sequestered conference... Continue Reading →
By: Donald L Swanson [UPDATE: The U.S. Supreme Court granted certiorari in this case on December 18, 2019.] The bankruptcy proceeding is City of Chicago, Illinois v. Fulton, with a Petition for certiorari pending before the U.S. Supreme Court (Case No. 19-357). The dispute is over City of Chicago refusing to surrender possession of impounded vehicles upon... Continue Reading →
By: Donald L Swanson Confidentiality is a central tenet of mediation. Without it, mediation cannot function effectively. So, statutes and court rules provide for high levels of confidentiality in the mediation process. But what about an assault occurring within the mediation process? Can a mediator testify about the assault? And what if the assault is directed... Continue Reading →
It's as if they don't want to mention the Bankruptcies Clause because, in doing so, they'd have to give it weight and authority.
By: Donald L Swanson “Those with business, managerial, consulting, mediation and operational experience are encouraged to apply.” --From “Solicitation” by U.S. Trustee for Applicants to Serve as Subchapter V Trustees (emphasis added) Back in August of this year, the Small Business Reorganization Act of 2019 became law. It’s effective date is 180 days later—February 19, 2020.... Continue Reading →
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