Violation of Intercreditor Agreement Costs Senior Lender its Priority
An Illinois Appellate Court recently held that a senior lender that violated the terms of an intercreditor agreement partially relinquished its priority in collateral securing its loan. In Bowling Green Sports Center, Inc. v. G.A.G. LLC, 2017 IL App...
Ninth Circuit Allows Trustee’s Fraudulent Conveyance Suit against IRS
The Ninth Circuit Court of Appeals recently split with the Seventh by holding that sovereign immunity does not prevent a bankruptcy trustee from avoiding a debtor’s federal tax payments to the Internal Revenue Service. In Zazzali v. United States...
Fraud Of A Greater Magnitude: Sixth Circuit Reinforces High Bar For Relief Under Rule 60(d)(1)
In Giasson Aero. Sci., Inc. v. RCO Eng'g Inc., 2017 U.S. App. LEXIS 18165 (6th Cir. Sep. 20, 2017), the Sixth Circuit Court of Appeals held that a party seeking an independent action for relief from a final judgment under Rule 60(d)(1) must...
Sixth Circuit Narrows Ability to Use Antitrust Violations as an Affirmative Defense
The Sixth Circuit Court of Appeals recently affirmed a trial court’s decision to strike an affirmative defense alleging antitrust violations in a breach of contract case. In Hemlock Semiconductor Operators, LLC v. SolarWorld Industries Sachsen...
Secured Lender's Dispositive Motion Denied in Sports Authority's Consignment Controversy
The United States Bankruptcy Court for the District of Delaware recently denied a secured lender’s motion for partial judgment on the pleadings that the lender’s interest in certain goods took priority over a vendor’s interest in those same...
Tenants Beware: Bankruptcy Sale May Terminate Your Lease
A recent ruling by the Ninth Circuit Court of Appeals that a lessee’s possessory right did not survive a “free and clear” sale under section 363 of the Bankruptcy Code is a warning to tenants of a bankrupt landlord to be diligent.
The case,...
Adverse-Domination Doctrine Does Not Toll Statute of Limitations For Claims Committee Could Have Brought
In Gecker v. Estate of Flynn (In re Emerald Casino, Inc.), 2017 U.S. App. Lexis 14895 (7th Cir., August 11, 2017), the Chapter 7 trustee sued former casino officers, directors, and shareholders for, among other things, breaches of fiduciary duties...
Bankruptcy Court Holds Case Subject To Dismissal When Reorganization Depends On Income Derived From Sale Of Marijuana
The Chapter 11 debtor in In re Arm Ventures, LLC, 564 B.R. 77 (Bankr. S.D. Fla. 2017) owned a commercial building. The debtor repeatedly maneuvered in state and federal court to stop foreclosure sales by the bank. Ultimately, the debtor filed...
Court Of Appeals Affirms Trial Court's Decision To Bar Witnesses After Party Misses Disclosure Deadline
The Michigan Court of Appeals recently affirmed a trial court's decision to bar trial witnesses because a party failed to timely disclose them. In Roeder v. Global Express Services, LLC, 2017 Mich. App. LEXIS 947 (June 13, 2017), the trial court had...
