ABI's 26th Annual Spring Meeting, the networking and CLE event of 2008, will be held April 3-6 at Washington, D.C.'s Renaissance Hotel in the Nation's Capital! Join us during cherry blossom season for exciting and informative sessions, including a luncheon keynote by Supreme Court Justice Samuel A. Alito, Jr.
The Bankruptcy Litigation committee will meet jointly with the Unsecured Trade Creditors committee on Saturday, April 5, from 8:00 to 9:30 a.m. to discuss, “An Examination of Preference Litigation Run Amok.”
The program on the problem of preferences, which have become the bane of every credit department. After working hard to get the payment in, two years later the preference complaint appears in the mail. Congress may have intended preferences to "level the playing field" so that all unsecured creditors could share equally in a distribution from the debtor's estate. In reality, however, preference recoveries often do not benefit unsecured creditors and often seem to benefit only the professionals representing the creditors' trust or the trustee. This panel will look at preference litigation run amok - examining several different cases in which hundreds of preference cases were pursued and the methods by which the plaintiffs sought recovery. Is there a way for preference recoveries to be pursued without creating a log jam in bankruptcy courts? Is there a way to efficiently examine defenses prior to filing cases? This will be a fascinating program, addressing a serious problem encountered throughout the nation.