On Bankruptcy and Mediation
By Donald L. Swanson “[I]t is unlikely that a city could file for bankruptcy solely for the purpose of shedding liability associated with unconstitutional police practices.” --Conclusion in a Report, dated 8/21/2016 and titled: “Who Pays for Police Misconduct in Bankruptcy Cities?” This conclusion is undoubtedly accurate when a City is capable of paying the... Continue Reading →
By Donald L. Swanson Back in February, 2016, we learn that the Bankruptcy Court in Chicago has revoked its local rules on mediation, while still encouraging parties to mediate their disputes. This development seems a bit . . . well . . . bizarre. After all, for example, such an approach appears to violate Federal... Continue Reading →
By Donald L. Swanson Here is a photo of the resignation letter from the mediator in the Caesars Entertainment bankruptcy proceeding. Wow!! That's an interesting take. And kudos to the mediator. It's always refreshing to see a principled stance. This Caesars case is pending in the Bankruptcy Court for the Northern District of Illinois, located... Continue Reading →
By Donald L. Swanson The American Bankruptcy Institute and St. John’s University School of Law do an annual forty-hour [yes, that’s 40-hour] “Bankruptcy Mediation Training” course. The next course is coming soon -- it’s scheduled for December 11 – 15, 2016. I took this course two years ago – and loved it! Here are some... Continue Reading →
By: Donald L Swanson "Each United States district court shall authorize . . . the use of alternative dispute resolution processes in all civil actions, including adversary proceedings in bankruptcy." --28 U.S.C. § 651. To date, many bankruptcy courts are still without local mediation rules, despite such statutory language. How can this be? An Explanation... Continue Reading →
By Donald L. Swanson Hypothetical: A City has been struggling for years to provide adequate services. Then, the City and its police officer are sued for violating the plaintiff’s civil rights. A jury verdict is for many-millions of dollars—an amount multiple times the City’s annual budget. Defendants appeal. Plaintiff starts executing on the judgement. So... Continue Reading →
By: Donald L. Swanson “It is not established whether Local Rule 84.9 [on mediation confidentiality] would resolve the FOIA question because local rules do not clearly fit within a recognized FOIA exemption.” --Judicial Watch, Inc. v. U.S. Dept. of Justice, 813 F.3d 380 (D.C. Cir. 2016). This quote comes at the end of a lengthy... Continue Reading →
By Donald L. Swanson United States statutes require the adoption of local bankruptcy rules for mediation and other alternative dispute resolution tools. Here’s how. Statutes A. The "Alternative Dispute Resolution Act of 1998" provides in part as follows (bold/italics added for emphasis): 28 U.S.C. Sec. 651: Authorization of alternative dispute resolution (b) AUTHORITY- Each... Continue Reading →
By Donald L. Swanson Detroit’s mediated settlements are “an extraordinary accomplishment in bankruptcy and an ideal model for future municipal debt restructurings.” --Judge Steven W. Rhodes, from Detroit Bankruptcy’s Plan Confirmation Ruling A new report “Who Pays for Police Misconduct in Bankrupt Cities” is the title for the report of a study, published on August... Continue Reading →
By: Donald L. Swanson When a mediating party and counsel say to the mediator: "Just give us your evaluation!" What they are actually saying is: "Just confirm that you agree with my side." --Prof. Elayne E. Greenberg of St. John's University School of Law This observation appears in the "Bankruptcy Mediation" book recently published by... Continue Reading →
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