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Damages Debtors

Patterson Belknap Webb & Tyler LLP

Eighth Circuit Issues Decision on Involuntary Bankruptcy Case and Damages Arising from a Bad Faith Filing

An appeals court has issued an insightful decision on the availability of damages when an involuntary bankruptcy petition is filed in bad faith. See Stursberg v. Morrison Sund PLLC, No. 23-1186, 2024 U.S. App. LEXIS 20286...more

Ward and Smith, P.A.

740,000 Reasons to Think Twice Before Putting a Company in Bankruptcy

Ward and Smith, P.A. on

A recent decision from a bankruptcy court in Delaware provides a cautionary tale about the risks of involuntary bankruptcy.  In the Delaware case, the debtor managed a group of investment funds. The business was all but...more

Pillsbury Winthrop Shaw Pittman LLP

Not So Fast: An Option to Purchase Real Estate May Not Always Be Rejected by the Debtor in Bankruptcy

A recent bankruptcy court decision determined that a debtor cannot reject an unexercised option for the purchase of its real estate, raising a potentially significant bar to any debtor extricating itself from an under-market...more

Lowenstein Sandler LLP

SDNY Chooses “Time Approach” to Calculating Lease Termination Damages Collectible Against a Bankrupt Estate

Lowenstein Sandler LLP on

Keara Waldron and Lindsay H. Sklar discuss the decision by the Bankruptcy Court for the Southern District of New York in the case of In re Cortlandt Liquidating LLC, which parted with decades of precedent to endorse and apply...more

Pillsbury Winthrop Shaw Pittman LLP

Time Approach Applied to Cap Rent Claim in Century 21 Bankruptcy Cases

New York bankruptcy court breaks with precedent and endorses time approach for calculating lease termination damages over rent amount approach, resulting in smaller claims for landlords. Time approach limits, and often...more

Greenbaum, Rowe, Smith & Davis LLP

NJ Supreme Court Ruling Addresses Enforceability of Arbitration Clauses in Construction Defect Disputes Involving Direct Claims...

What You Need to Know- •The issue at hand in this case involved an interpretation of the statutory construction of New Jersey’s Direct Action Statute, which permits a judgment creditor holding an unsatisfied judgment to...more

Smith Debnam Narron Drake Saintsing & Myers,...

Debtor’s Counsel Failed to Mitigate Attorneys’ Fees Incurred for § 362(k) Violation by Rejecting Settlement Offer; Proceeding to...

Section 362(k) of the U.S. Bankruptcy Code entitles an individual injured by a willful violation of the automatic stay to recover actual damages, including costs and attorneys’ fees, as well as punitive damages in appropriate...more

Patterson Belknap Webb & Tyler LLP

Blurred Immunity: California Cannot Escape Adversary Proceeding on Grounds of Sovereign Immunity

In 2018, the liquidating trustee for Venoco, LLC and its affiliated debtors (collectively, the “Debtors”) commenced an action in the United States Bankruptcy Court for the District of Delaware seeking monetary damages from...more

Spilman Thomas & Battle, PLLC

All Consuming - Financial Litigation Insights: Issue 4, August 2020

Welcome! Welcome to August’s issue of All Consuming. This month, we are taking a deep dive into discharges in bankruptcy and then reviewing several top news stories in the world of consumer finance. We hope you find value...more

Hinshaw & Culbertson LLP

Wisconsin Supreme Court Rules Creditor's Failure to Send a Right to Cure Notice is not Grounds for a Monetary Damages Claim

A debtor ("Kirsch") recently sought monetary damages from his creditor ("Security Finance"), arguing that Security Finance had failed to provide sufficient notice of right to cure before commencing a debt collection action,...more

Hinshaw & Culbertson LLP

Consumer Financial Services Newsletter - August 2016

Seventh Circuit Rules: Filing a Proof of Claim for Old Debt Is Okay — Circuits Split - Owens et al. v. LVNV Funding LLC et al., Nos. 15-2044, 15-2082, 15-2109 (7th Cir. Aug.10, 2016) - In Owens v. LVNV Funding LLC,...more

McAfee & Taft

Bankruptcy Pitfalls: How an infringer's bankruptcy could impact your IP rights

McAfee & Taft on

As a patent owner, you have the exclusive right to prevent others from making, using, selling, offering for sale, or importing your claimed invention into the United States. You also have the ability to recover damages from a...more

Buchalter

What Creditors Need to Know - Two Recent Bankruptcy Rulings Affect Rights and Risks Regarding the Automatic Stay

Buchalter on

Immediately upon the commencement of a bankruptcy case an automatic stay prohibits actions against the debtor to, among other things, collect pre-petition obligations and to obtain control over property of the bankruptcy...more

Fisher Phillips

Education Update, No. 3, July 2013: Are Your Enrollment Agreements Creating More Liability Than Revenue?

Fisher Phillips on

Running a school has become more regulated and difficult. As we look at the creative ways that schools structure enrollment contracts and encourage early payment or accommodate payments over time, many schools may be...more

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