On Bankruptcy and Mediation
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 This is the third-of-three articles on In re Smith, 524 B.R. 689 (Bkrtcy.S.D.Tex. 2015). Sitting Judges as Mediators--for Comparison I've published an earlier article on sitting bankruptcy judges as mediators in bankruptcy cases titled, "What's the Fascination with Requesting an Unnamed 'Sitting Bankruptcy Judge' as Bankruptcy Mediator?" In response to that... Continue Reading →
By: Donald L. Swanson The first of my three articles on In re Smith, 524 B.R. 689 (Bkrtcy.S.D.Tex. 2015), quotes the Judge’s arguments for opposing mediation. Some of those arguments seem off-base, as I noted in Part 1. Mediator as Professional However, the Judge addresses another issue in that case on which his ruling is more... Continue Reading →
By Donald L. Swanson Not everyone is a fan of mediation. And one Texas Bankruptcy Judge is emphatically opposed. Judicial Actions Here is an unofficial transcription (from the official recording) of an in-court exchange occurring on September 3, 2014, as reported on this webpage: “The Court: . . . Is the Trustee eventually going to... Continue Reading →
By: Donald L. Swanson Conventional thinking (as I understand it) is that mediators should not have a role in preparing a settlement-terms document that concludes a successful mediation. I'm suggesting that a mediator can/should have a limited-and-neutral role in preparing such a document. Here's why. Some Ancient History Its 25 years ago -- or more.... Continue Reading →
By: Donald L. Swanson One reason given by the Chicago Bankruptcy Court for the recent revocation of its Local Mediation Rules is this: --Several Judges in the Chicago Bankruptcy Court have agreed to mediate cases for their colleagues on that Court. The pickle is this: --such intra-court mediator appointments create a conflict of interest. This... Continue Reading →
By Donald L. Swanson You are out there: professionals who've had mediation training and are set-to-go as mediators of bankruptcy disputes but, alas, are still looking for cases to mediate. I'd like to introduce you to some attorneys who can't afford a mediator for their smaller-amount cases: they are reading this article. Attorneys with smaller-amount... Continue Reading →
By: Donald L. Swanson A tragedy of recent Chapter 11 times is this: --it looks like Congress tried to remove the absolute priority rule from individual Chapter 11 cases (see the "individual" exception in § 1129(b)(2)(B)(ii) photo above); but Congress didn't quite get the removal words right, according to subsequent court rulings. We now have... Continue Reading →
By: Donald L. Swanson Mandatory mediation is a good thing [see, e.g., my blog post titled, "Local Bankruptcy Rules Without Mandatory Mediation are Like a Toolbox Without a Vise-Grip"]. But the words "mandatory mediation" refer only to a required process. They do not suggest any such thing as compelled settlement or compelled concession or even... Continue Reading →
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 →
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