On Bankruptcy and Mediation
Deception? By: Donald L Swanson Plaintiff claims to have been deceived into reaching a mediated settlement agreement—and refuses to proceed with the agreement. The U.S. District Court rejects Plaintiff’s deception claim. And the U.S. Sixth Circuit Court of Appeals affirms. The Sixth Circuit’s opinion is White v. Perron, Case No 23-1542, decided September 25, 2023. Facts White... Continue Reading →
Good faith v. Bad faith? By: Donald L Swanson Is an involuntary bankruptcy, filed by an owner/creditor of the Debtor, filed in good faith or in bad faith? That’s the question before the U.S. Supreme Court on which it denied certiorari on October 30, 2023 (Wortley v. Juranitch, Case No. 23-211). Here’s the gist of the... Continue Reading →
A crusade? (Photo by Marilyn Swanson) By: Donald L Swanson The U.S. Trustee is on a crusade to eradicate every type of third-party release from all Chapter 11 bankruptcy plans—no matter what the facts or circumstances might be. It’s a policy based on the idea that, if the Bankruptcy Code doesn’t specifically and explicitly authorize something,... Continue Reading →
These buildings are “arising in”? (Photo by Marilyn Swanson) By: Donald L Swanson A bankruptcy court has jurisdiction to dismiss a legal malpractice claim of non-debtor plaintiffs against non-debtor attorneys. That’s the ruling in Murray v. Willkie Farr & Gallagher LLP (In re Murray Energy Holdings Co.), Adv. Pro. No. 22-2007, Southern Ohio Bankruptcy Court (decided... Continue Reading →
Request denied? (Photo by Marilyn Swanson) By: Donald L Swanson Bankruptcy Court denies a party’s request to enforce arbitration of a legal malpractice claim—and then dismisses that malpractice claim for failure to state a claim. The opinion is Murray v. Willkie Farr & Gallagher LLP (In re Murray Energy Holdings Co.), Adv. Pro. No. 22-2007, Southern... Continue Reading →
What are the rights, powers, functions and duties here? (Photo by Marilyn Swanson) By: Donald L Swanson This ideal is floating around: upon removal of a Subchapter V debtor from possession, for fraud or other cause, the Subchapter V trustee has no expanded right, power, function or duty beyond operating debtor’s business (the “Ideal”). This Ideal... Continue Reading →
Roundness (photo by Marilyn Swanson) By: Donald L Swanson A study on using round-number offers and precise-number offers in negotiations reaches these two conclusions: Round numbers signal completion—and so, negotiators are more likely to accept a round number offer (e.g., $3,000) than a precise number offer (e.g., $3,278.23); and Precise numbers are perceived as factual and... Continue Reading →
Apathy? (Photo by Marilyn Swanson) By: Donald L Swanson Here’s the latest opinion on a controversial question: In re Franco’s Paving LLC, Case No. 23-20069, Southern Texas Bankruptcy Court, (decided 10/5/2023; Doc. 74). The Question & Answer Voter apathy is a problem in Subchapter V cases. That apathy is in the form of creditors failing or... Continue Reading →
Making it work -- Mandating action (photo by Marilyn Swanson) By Donald L. Swanson Recent expressions of concern about courts mandating mediation reminded me of a mandated mediation process that worked well: the City of Detroit bankruptcy. An illustration of the success of mandated mediation in the Detroit case is this line: The Bankruptcy Judge... Continue Reading →
By: Donald L Swanson Here’s the latest on tort claims against Johnson & Johnson: a $223.8 million judgment against Johnson & Johnson ($37.3 compensatory + $186.5 punitive) in favor of four plaintiffs (i.e., $55.95 million each) is . . . reversed. The reversal opinion is Barden v. Johnson & Johnson, et al., Docket Nos. A-0047-20 thru... Continue Reading →
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