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When Judges Mediate: Perspectives on Reaching Successful Outcomes

In recent years, bankruptcy judges — including the co-author of this article — have been mediating cases with more frequency. Parties in bankruptcy-related disputes often request that one of the local bankruptcy judges mediate their cases, or in other cases, that a bankruptcy judge refer a matter to a colleague for mediation. Having bankruptcy judges mediate disputes can be an effective and economical way to resolve contentious matters.

Mediation: Mother, May I?

In many bankruptcy courts, using mediation to resolve complex disputes, or at least narrow issues in dispute, has become commonplace.[1] In fact, in certain jurisdictions mediation of adversary proceedings is mandatory.[2] However, one recent bankruptcy court expressed disapproval at the notion that every bankruptcy dispute should be mediated, and set forth the factors it will consider before allowing parties to expend any estate funds on mediating disputes.

Special Edition: Joint ABI Mediation and Litigation Committee Newsletter

We asked our joint membership to respond to mediation-related survey questions in order to better understand the experience and to receive comments from the litigant’s and mediator’s perspectives. We would like to thank all those who responded to the survey. We received a robust response and are providing highlights to our joint membership.

Debt-Equity Recharacterization

The most recent committee call explored decisions that have clarified case law on recharacterization, including analyzing the Tenth Circuit’s Alternate Fuels decision and other rulings. Additionally, speakers discussed how practitioners can effectively use section 510(b) of the Bankruptcy Code, and how courts have reviewed contemporaneous business records to evaluate the parties’ intentions at the time of the transaction. Speakers from this call included authors of the most recent committee newsletter articles.