By Donald L. Swanson Bankruptcy often deals with failure, loss, and broken promises. So it has a bad reputation. But bankruptcy often provides a valuable service in time of need. And we now have a new example of this: --a company that supplies total artificial hearts to people at death’s door. SynCardia Systems, Inc., filed... Continue Reading →
The Absolute Priority Rule Torpedoes Settlements in Individual Chapter 11 Cases (Part One)
By Donald L. Swanson I don't need to see a study or commission report for the title of this article. I've seen the problem play out many, many times in real life. Here is an attempt to explain. Some Propositions Proposition # 1: When one party has 0% odds of success at trial, a mediation... Continue Reading →
ACTION ITEM: From Preparing for Multiparty Mediation — Part Three
Action Item. Issues relating to first offer arrangements, non-monetary terms, settlement documentation, number of sessions, and use of an assistant mediator need to be discussed in advance by the mediator with parties and their attorneys to prepare for multiparty mediation sessions. Advance communications on subjects identified in this three-part series will significantly enhance the efficiency... Continue Reading →
Preparing for Multiparty Mediation: A Checklist — Part Three, Items 6-10
By Donald L. Swanson When preparing for a multiparty mediation, the following items 6 through 10 should be addressed by the mediator with the parties and their attorneys in advance communications. Item Six. First Offer Arrangements. Common questions about the first offer in a mediation are: (1) Which party will make the initial offer at... Continue Reading →
U.S. Supreme Court Will Weigh-In on Bankruptcy Settlement Issue: A Choice Between Rigidity and Flexibility
By: Donald L. Swanson On June 28, 2016, the United States Supreme Court grants certiorari, in the case of In re Jevic Holding Corp. from the Third Circuit Court of Appeals, to resolve this narrow issue: “Whether a pre-plan settlement in a Chapter 11 bankruptcy may provide for payment to general unsecured creditors when priority claims remain... Continue Reading →
Usual Formula [Unsecured Claim + Bankruptcy = You Lose] Doesn’t Apply (the Nortel Networks Bankruptcy, Part six)
By: Donald L Swanson Unsecured Claim + Bankruptcy = You Lose. I came up with this formula back in 1983, while preparing for a seminar presentation on basic bankruptcy law. I was trying to come up with something creative to say. And . . . I must confess . . . I thought it was... Continue Reading →
Two College Football Coaches and Two Rape Victims: Accountability / Forgiveness / Reconciliation v. A Mediation No-Show
By Donald L. Swanson Here are two recent news articles on similar subjects and similar circumstances . . . but with dramatically different approaches and results. The first is from Yahoo Sports, dated June 20, 2016, titled, Attorney: Art Briles was a no-show at mediation meeting with [rape] victim. The second is from... Continue Reading →
ACTION ITEM: From Preparing for Multiparty Mediation — Part Two
Action Item. Issues relating to settlement impediments, parties, information and discovery, use of joint sessions, and tax implications need to be discussed in advance by the mediator with parties and their attorneys to prepare for multiparty mediation sessions.
Preparing for Multiparty Mediation: A Checklist — Part Two, Items 1 – 5
By Donald L. Swanson Advance communications among the mediator, the parties and their attorneys can be helpful in creating an organization, structure and efficiency for multiparty mediation sessions. The following are items one through five in a ten-item checklist of the types of subjects that should be addressed in the advance communications: Item One. Settlement... Continue Reading →
A 2011 Judicial Scolding Had No Discernible Effect on Mediation Efforts (Nortel Networks Bankruptcy, Part Five)
By: Donald L Swanson Back in 2011, the Third Circuit Court of Appeals wrote a scathing opinion about the behavior of the disputing parties in the Nortel Networks bankruptcy case. The Third Circuit's opinion is published at In re Nortel Networks, Inc., 669 F.3d 128 (3rd Cir. 2011). However, the Third Circuit's judicial scolding has had... Continue Reading →