Ritzen and Bullard Didn’t Change the ‘Pragmatic Approach’ to Bankruptcy Finality
Under binding circuit precedent, a Delaware district judge ruled that an order denying a motion to dismiss a chapter 11 case is final and appealable.
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Shareholder Standing Scrutinized in a Case that Presages Truck Insurance
Can Section 327(c) be unconstitutional as applied if it deprives shareholders of standing when the estate might be solvent?
Another Judge Rules that Federal Bankruptcy Law Preempts Delaware Law on LLCs
Like Bankruptcy Judge Lopez in Houston, Delaware’s Judge Goldblatt decided that Delaware law governing LLCs can’t eliminate rights that are fundamental in federal bankruptcy law.
No Condemnation When Government Takes Over Property to Prevent Public Injury
No reverse condemnation occurred when the state took over a debtor’s property to prevent an imminent threat to public health.
Whether a Fraudulent Transfer Claim Is ‘Direct’ or ‘Derivative’ Depends on Point of View
A D&O policy covering securities claims doesn’t provide coverage for a claim resulting from a fraudulent transfer, the Delaware Supreme Court rules.
Actual Damages Not Required to Recover Attorneys’ Fees for a Stay Violation
Judge Goldblatt slaps creditors with $665,000 in damages for violating the automatic stay.
Judge Goldblatt on the Imputation of Fraudulent Intent to a Delaware Corporation
The fraudulent intent of an individual who controls a corporation can be imputed to the corporation itself, even if the board is unaware of fraud.
It’s Ok for Lenders to ‘Manufacture’ a Favorable Venue, Delaware Judge Says
A Delaware opinion states that debtors can’t reincorporate to manufacture venue, but it’s permissible for lenders to do so.
Bankruptcy Judge Hints: Third Circuit Precedent on Public Records May Be Too Broad
Delaware’s Judge Goldblatt seems to be recommending that the Third Circuit close a loophole in confidentiality agreements.
Successorship Obligations Are Not Barred by Sales Free and Clear, Delaware D.J. Says
Neither a sale ‘free and clear’ nor rejection of a union contract bars enforcement of NLRA successorship obligations, Delaware district judge rules in reversing the bankruptcy court.