Settlement Is Binding Despite Claim that Attorney Lacked Client Authorization
The Michigan Court of Appeals recently continued its trend of enforcing settlements despite the absence of a signed settlement agreement. In Trevino v. Siler, et al., case no. 330120 (Mich. Ct. App. January 17, 2017), the plaintiff's counsel called...
Sixth Circuit Court of Appeals Issues Lengthy Opinion Regarding Claims of Actual Fraud
In Meoli v. Huntington Nat'l Bank, the Sixth Circuit affirmed a multi-million judgment against The Huntington National Bank stemming from a bankruptcy trustee’s lawsuit seeking to recover fraudulent transfers from a debtor company’s operation of...
Sixth Circuit: Bankruptcy Trustee’s Veil Piercing and Substantive Consolidation Claims Fail in Fraudulent Transfer Case
In the personal bankruptcy of a husband and wife, a bankruptcy trustee sought to avoid an allegedly fraudulent transfer between two third-party corporations. Debtors entered into a purchase agreement to purchase a farm, then assigned the purchase...
Creditors’ Committee’s Legal Fees Not Subject to Pre-Confirmation Cap
A Delaware Bankruptcy Court recently held that an unsecured creditors’ committee’s legal fees were not subject to a pre-confirmation cap contained in a financing order. In In re Molycorp, Inc., Case No. 15-11357 (Bankr. D. Del. Jan. 5, 2017),...
Bank’s Security Interest Does Not Attach to Chapter 11 Bankruptcy Retainer
In In re Tuscan Energy LLC, 16-100398 (Bankr. S.D.Fla. Dec. 30, 2016), a bank objected to a fee application of Debtor’s counsel on the grounds that the pre-petition retainer paid to counsel constituted the bank’s cash collateral that should not...
More Than They Barton’ed for: Plaintiffs Must Seek Authorization to Sue Committee Members under Barton Doctrine
In Blixseth v. Brown, et al. (In re Yellowstone Mount Club, LLC), No. 14-35363 (9th Cir. November 28, 2016), the Ninth Circuit Court of Appeals held that the Barton doctrine applies to members of an Unsecured Creditors’ Committee and, therefore, a...
Michigan Legislature Considers Replacing Uniform Fraudulent Transfer Act with Uniform Voidable Transactions Act
The Michigan legislature, at the recommendation of the Uniform Law Commission, is considering replacing the Uniform Fraudulent Transfer Act with the Uniform Voidable Transactions Act. The proposed legislation would, according to the Senate Fiscal...
Golf Channel Scores Bounce Back Birdie in Ponzi Scheme Fraudulent Transfer Case
The Supreme Court of Texas recently held that the transfer of $5.9 million from Stanford International Bank Ltd. to the Golf Channel for media-advertising services was not recoverable as a fraudulent transfer, even though Stanford used the services...
Sixth Circuit Denies Detroit Pensioners’ Appeal under Equitable Mootness Doctrine
In Ochadleus v. City of Detroit (In re City of Detroit), Nos. 15-2194, 2337, 2353, 2371, 2379 (6th Cir. Oct. 3, 2016), the Sixth Circuit Court of Appeals affirmed an order prohibiting Detroit pensioners from challenging cuts to their pensions under...
