Tag Archives: Southern District

Patriot Coal Update: Mining For Venue

Late last week, Judge Shelley C. Chapman of the Bankruptcy Court for the Southern District of New York heard arguments from a number of parties regarding whether the New York bankruptcy court is the proper venue for Patriot Coal Corporation’s bankruptcy cases. In re Patriot Coal Corp., Case No. 1:12-bk-12900. Judge Chapman did not rule on the venue question from the bench. Instead, the parties will wait for a ruling while proceeding with the bankruptcy case. Continue reading

If Your Signature is On It, You’d Better Have Personally Reviewed It

That was the admonition Judge Sean H. Lane of the United States Bankruptcy Court for the Southern District of New York recently delivered to a partner and his law firm. The Court held that the partner’s failure to personally review a proof of claim that an attorney at his firm submitted to the Court under the partner’s signature, but which the partner had not personally reviewed, violated Bankruptcy Rule 9011.[i] Continue reading

Coudert Brothers Trust v. Baker & McKenzie, et al., No. 11-2785, 2011 U.S. Dist. LEXIS 110425 (S.D.N.Y. Sept. 23, 2011)

In Coudert Brothers, the Southern District of New York considered whether the parties impliedly consented to the bankruptcy court’s entry of a final order determining non-core claims it otherwise lacked constitutional authority to adjudicate under Stern v. Marshall.[i] Because the parties did not consent, the district court treated the bankruptcy court’s opinion as proposed findings of fact and conclusions of law, which the district court would review de novo. Continue reading

Development Specialists, Inc. v. Akin Gump Strauss Hauer & Feld LLP, No. 11 Civ 5994, 2011 WL 5244463 (S.D.N.Y Nov. 2, 2011)

The plan administrator for the estate of Coudert Brothers, LLP filed with the bankruptcy court thirteen separate adversary proceedings against ten law firms alleging that the law firms were liable to Coudert for “unfinished business” that several of Coudert’s former partners took with them to their new firms. After the Supreme Court issued its decision in Stern v. Marshall, the law firms moved the Southern District of New York to withdraw the bankruptcy reference and abstain from hearing the claims in favor of New York state courts or review the merits of the bankruptcy court’s denial of the firms’ motion to dismiss de novo. The court granted the motion to withdraw the reference, but denied the motion to abstain. Continue reading

Bankruptcy Bullets – Official Comm. of Unsecured Creditors of Quebecor World (USA) Inc. v. Am. United Life Ins. Co. (In re Quebecor World (USA) Inc.), Adv. Proc. No. 08-01417 (Bankr. S.D.N.Y)

On July 27, 2011, in an adversary proceeding brought by the Creditors’ Committee against certain of the Debtor’s noteholders, Bankruptcy Judge James M. Peck held that a $376 million prepetition redemption payment made by the Debtor to noteholders did not constitute an avoidable preference. Instead, the payment was a safe-harbored “settlement payment” under section 546(e) of the Bankruptcy Code. Continue reading

S.D.N.Y. Bankruptcy Court Continues to Construe Bankruptcy Code’s Safe Harbor Provisions Narrowly

In two recent decisions, the United States Bankruptcy Court for the Southern District of New York has interpreted narrowly certain of the Bankruptcy Code’s safe harbor provisions. Continue reading

Bankruptcy Bullets – In re Fairfield Sentry Limited, et al., No. 10-13164 (Bankr. S.D.N.Y. May 23, 2011)

On May 23, 2011, Judge Lifland granted, over the objection of various defendants in adversary proceedings commenced by the Debtors, the Debtors’ request for an extension of time to assert causes of action and investigate potential claims in their chapter … Continue reading