Posts Categorized: Bankruptcy

Posted: December 3, 2020

Federal Bankruptcy Law Does Not Preempt Tortious Interference Claim by Non-Debtors

On November 24, 2020, the Court of Appeals issued a decision in Sutton 58 Assoc. LLC v. Pilevsky, 2020 NY Slip Op. 06939, holding that federal bankruptcy law does not preempt tortious interference claims by non-debtors, explaining: In their bid for dismissal of plaintiff’s claims, defendants do not identify any specific Bankruptcy Code provisions that... Read more »

Posted: March 10, 2018

Court Denies Stay Despite Necessary Party Being Bankrupt

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 »

Posted: June 12, 2016

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 »

Posted: June 10, 2016

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 »

Posted: November 30, 2014

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 »

Posted: March 28, 2014

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 »