Christopher S. Sontchi

Special Counsel with an Actual Conflict Faces Disgorgement of Fees in Delaware

Judge Sontchi set aside a prior order preventing the trustee from controlling litigation brought in the trustee’s name.

Court :

3rd Circuit

Delaware

Opinion Finding Fraud Shows the Dangers in an Agreement to Finance Litigation

Chapter 7 trustee was precluded from terminating a lawsuit because a secured lender had been given the right to settle.

Court :

3rd Circuit

Delaware

Delaware Bankruptcy Judge Dismisses a Lawsuit for Forum Non Conveniens

Although a chapter 11 plan can bind parties throughout the world, Judge Sontchi wouldn’t let a foreign debtor sue a foreign bank in the Delaware bankruptcy court over a transaction that occurred in England.

Court :

3rd Circuit

Delaware

Third Circuit Makes Strict Rules Before Subrogation Rights Kick In

There can be no question about whether the beneficiary of a surety bond has been ‘paid in full’ before the surety has subrogation rights.

Court :

3rd Circuit

Bankruptcy Courts Aren’t Prohibited from Entering Mareva Injunctions

The Supreme Court’s Grupo Mexicano decision doesn’t bar a bankruptcy court from freezing a defendant’s assets prior to judgment in a fraud action, Judge Sontchi says.

Court :

3rd Circuit

Delaware

Judge Sontchi Cuts Off U.S. Trustee Fees on Confirmation of a Chapter 11 Plan

Closing a chapter 11 case after confirmation to avoid U.S. Trustee fees won’t be necessary if the ruling by Judge Sontchi holds up.

Court :

3rd Circuit

Delaware

Federal Common Law Doesn’t Define a Business Trust Eligible for Chapter 11

Recent Supreme Court authority supports the conclusion by Delaware’s Judge Sontchi that law from the jurisdiction of incorporation, not federal common law, determines what is or isn’t a business trust eligible for chapter 11.

Court :

3rd Circuit

Delaware