On February 6, 2018, Justice Kornreich of the New York County Commercial Division issued a decision in D.E. Shaw Composite Holdings, L.L.C. v. TerraForm Power, LLC, 2018 NY Slip Op. 30232(U), denying a stay despite a necessary party being bankrupt, explaining: CPLR 1001 governs the necessary joinder of parties. CPLR 1001(a) provides that persons ought… Read more »
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Posts Categorized: Bankruptcy
Client Q&A: A Customer That Went Bankrupt Is Suing to Recover Payments It Made to Me; What Can I Do?
A customer that went bankrupt is suing to recover payments it made to me. What can I do? By John M. Lundin When a business goes bankrupt, it very often happens that everyone to which the company paid money in the 90 days before the bankruptcy petition was filed gets sued to recover those payments… Read more »
In Pari Delicto Defense Can Be Asserted Against Bankruptcy Trustee
On October 18, 2016, the First Department issued a decision in New Greenwich Litigation Trustee, LLC v. Citco Fund Services (Europe) B.V., 2016 NY Slip Op. 06796, holding that an in pari delicto defense can be asserted against an innocent bankruptcy trustee, explaining: As the Court of Appeals has explained, the doctrine of in pari… Read more »
State Court Can Determine Dischargeability of Debt Not Scheduled in Bankruptcy Case
On May 31, 2016, Justice Ostrager of the New York County Commercial Division issued a decision in Gleeson v. Phelan, 2016 NY Slip Op. 30993(U), regarding the determination of whether a debt had been discharged in bankruptcy. In Gleeson, the plaintiffs sought to have the defendant reimburse them for monies they paid under a Guaranty… Read more »
State Court Has Power to Extend Bankruptcy Stay to Non-Bankrupt Party
On May 25, 2016, Justice Singh of the New York County Commercial Division issued a decision in Deutsch v. Liquid Holdings Group, Inc., 2016 NY Slip Op. 30966(U), extending the automatic bankruptcy stay to non-bankrupt parties, explaining: Bankruptcy law automatically stays all actions or proceedings against the debtor and all actions to obtain possession or… Read more »
Client Q&A: The Person Who Cheated Me Just Filed For Bankruptcy. Is This Legal? What Can I Do?
The Person Who Cheated Me Just Filed For Bankruptcy. Is This Legal? What Can I Do? By Niall D. O’Murchadha Nothing adds insult to injury like getting the news that someone who cheated you in a business transaction, or otherwise did you wrong, has filed for bankruptcy in order to get out of paying you… Read more »
Client Q & A: One of my customers just went bankrupt. Does that mean it does not have to pay off its account?
One of my customers just went bankrupt. Does that mean it does not have to pay off its account? By Bennette Deacy Kramer Your customer does not have to pay off its account now, but depending on the amount of assets in the bankruptcy estate, you might receive payment up to 100% of the amount… Read more »
Court Declines to Stay Action in Favor of Pending Bankruptcy
On November 10, 2014, Justice Schweitzer of the New York County Commercial Division issued a decision in Stonehill Institutional Partners, L.P. v. Frac Diamond Aggregates LLC, 2014 NY Slip Op. 32977(U), refusing to stay an “an enforcement action to obtain an order of reference, to confirm sale, and to determine the amount of a deficiency… Read more »
Case Remanded To EDNY To Determine What Plaintiff Knew Or Could Have Known Regarding Its Claims Before Defendants’ Bankruptcy Discharge
On March 27, 2014, the Second Circuit issued a decision in DPWN Holdings (USA), Inc. v. United Airlines, Inc., No. 12-4867-cv, discussing the standard for determining whether a post-bankruptcy-discharge lawsuit can be brought based on pre-discharge claims. In DPWN Holdings, the EDNY denied the defendants’ motion to “dismiss an antitrust price-fixing claim,” rejecting the defendants’ argument… Read more »