On Bankruptcy and Mediation
By: Donald L. Swanson Alternative dispute resolution provisions (“ADR”) involving arbitration and compromises have been part of U.S. bankruptcy laws since at least 1898. ADR Bankruptcy History – From 1898 An 1899 publication of the U.S. “National Bankruptcy Act of 1898” provides for “Arbitration of Controversies” and for “Compromises” in consecutive sections as follows: --“§... Continue Reading →
By: Donald L. Swanson Who knew that the City of Detroit’s confirmed bankruptcy plan is still in legal jeopardy? Well . . . it is. But the jeopardy today is much-less than it was two days ago. Several Detroit pensioners had challenged the City of Detroit’s plan confirmation order because the plan reduced their benefits. ... Continue Reading →
By: Donald L. Swanson Four law firms are squabbling over how to divide a $20 million attorney fees fund in a bankruptcy case. [Insert your own derisive epithet here.] The Facts A two-year and multi-session mediation results in settlements of asbestos-related claims. One such settlement involves a $90 million payment from an insurance company, $70... Continue Reading →
By: Donald L. Swanson C. Edward Dobbs, Partner at Parker Hudson Rainer & Dobbs, is a leading expert... Continue Reading →
By: Donald L. Swanson “Food deserts” are “places where many residents don’t have access to a full-service grocery store within a mile of home in urban areas or 10 miles in rural ones.” --Wall Street Journal, 7/12/2015 “Mediation deserts” are courts that don’t (or won’t) provide access, by rule or statute, to mediation as a... Continue Reading →
By: Donald L. Swanson Bankruptcy courts have drawn the short mediation straw and are lagging behind: --they don’t have a Federal rule of procedure for mediation. Every other court in the bankruptcy-related court system has such a rule: --The U.S. district courts have Fed.R.Civ.P. 16(c)(2) & 53 [as discussed in this article]. --The U.S. courts... Continue Reading →
By: Donald L. Swanson The Ninth Circuit Court of Appeals, in a new ruling, helps point-the-way for cities facing the complexities of Chapter 9 bankruptcy. The Facts On March 28, 2003, three citizens of Vallejo, California, have a violent encounter with two of Vallejo’s police officers. A lawsuit ensues. Then, the City of Vallejo files... Continue Reading →
By: Donald L. Swanson How can this be?! Federal rules of procedure contain mediation provisions for every bankruptcy-related court, except for the bankruptcy courts themselves. Why this discrimination against bankruptcy courts??!! [By bankruptcy-related courts, I’m referring to: --the bankruptcy courts themselves; --the U.S. district courts, in both their trial and bankruptcy-appeal capacities; --the bankruptcy appellate... Continue Reading →
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 →
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