By: Donald L. Swanson “Estate planning” is a frequently utilized, but rarely successful, defense against fraudulent transfer claims. Here’s why: estate planning strategies that make perfect sense when everyone is solvent become cloaked with “badges of fraud” amid insolvency, demonstrating “actual intent to hinder, delay or defraud creditors.” Estate planning to address financial defaults is usually... Continue Reading →
A Mediator/Arbitrator Malpractice Lawsuit: Haven’t Seen This Before!
By: Donald L. Swanson This doesn’t happen every day: A mediator’s engagement agreement authorizes the mediator to arbitrate disputes about any settlement agreement the parties might reach in mediation; The mediation achieves a settlement agreement, but a dispute arises over an alleged mistake in the agreement document; and The mediator attempts to arbitrate the dispute and... Continue Reading →
Bankruptcy Laws for Puerto Rico: A Series of Unfortunate Technicalities and Screw-ups
By: Donald L. Swanson The U.S. Supreme Court has agreed to decide the constitutionality of the bankruptcy-type system under which Puerto Rico is operating. The case is Financial Oversight and Management Board for Puerto Rico v. Aurelius Investment, LLC (Case No. 18-475). Sounds ominous . . . and monumental . . . , right? The reality... Continue Reading →
A Party’s Obligation to Pay a Mediator’s Fee is Enforced
By Donald L. Swanson On May 28, 2019, a U.S. District Judge issued an Order insisting that the Defendant pay mediator fees of $1,850.00 for a cancelled mediation. The case is Linares v. Suarez, in the U.S. District Court for Florida’s Middle District (Case No. 8:18-cv-985). Facts Here’s what happened. --Mediation Scheduled. Linares sued Suarez for... Continue Reading →
The Bankruptcy Code Needs an Advocate for Its Interests at U.S. Supreme Court — The Solicitor General is Not Adequate
By: Donald L Swanson The Bankruptcy Code is in a precarious position. It is a “transformative piece of legislation,” but it is without a strong agency in the Executive Branch to interpret it, enforce it, and promote its interests. [Fn. 1] Each Federal agency is part of the Executive Branch and has an area of responsibility... Continue Reading →
Must Mediators of Disputes in Litigation be Lawyers?
By: Donald L. Swanson Many mediators, in a variety of contexts, are not lawyers. In the mediation of lawsuit disputes, however, lawyers predominate. And that makes practical sense—especially in complex cases. But in lawsuits, even complex ones, the mediator is not required to be an attorney. At least, that’s the opinion of the Attorney General for... Continue Reading →
“Kicking the Can Down the Road”: Family Businesses in Chapter 11
By: Donald L. Swanson “Kick the can down the road” is an adage that means this: “to delay or avoid dealing with a problem.” Before Bankruptcy That’s what family businesses in financial stress do, outside of bankruptcy. They deal with unhappy creditors by kicking the can down the road. Here’s why: cash resources are tight, and... Continue Reading →
Studies on Rejection v. Choice Decisions: Implications for Mediators?
By: Donald L. Swanson Making an affirmative choice among alternatives is one way to make a decision. Rejecting an alternative is another way. Research Results Research shows that these two differing ways of making decisions often produce differing results. That’s because people “adopt different selection criteria” and “allocate different weights and choices” in these two ways... Continue Reading →
Legal Standard for Imposing Civil Contempt
By: Donald L. Swanson On June 3, 2019, the U.S. Supreme Court issued its opinion in the Taggart v. Lorenzen case. The Question The question before the Supreme Court, in Taggart v. Lorenzen, “concerns the legal standard for holding a creditor in civil contempt when the creditor attempts to collect a debt in violation of a... Continue Reading →
Studies Show that Humility and Pursuit of Virtue Lead to Wisdom in Resolving Conflicts: Implications for Mediation?
By Donald L. Swanson “Soloman’s Paradox” = “we tend to reason more wisely about other people’s problems than our very own” (aka, “Plenty of wisdom for others; but not for oneself”). [Fn. 1] “King Solomon, the third leader of the Jewish Kingdom, is thought of as a sage and a man of great wisdom. People traveled... Continue Reading →