Practice and Procedure

First Nixing $240,000 for Contempt, Fifth Circuit Approves $450,000 for Civil Contempt

Having previously set aside a $240,000 sanction as criminal contempt, the Fifth Circuit affirmed $450,000 in civil contempt against the same contemnor in the same bankruptcy case.

Working with Local Counsel in Chapter 11 Cases

Parties in large, complex bankruptcy cases routinely retain local counsel when that party's primary counsel has no office or attorneys licensed in a particular venue. Local counsel can provide critical support in these cases--to creditors, committees, groups, and debtors--including having local knowledge, well-formed relationships in the venue, and familiarity with other professionals and the court.

But hiring local counsel can present myriad issues with retention, compensation, and, in particular, ethics. Many courts have strict rules on hiring local counsel, including some jurisdictions that require local counsel to play a substantive role in the case (as opposed to simply signing/filing pleadings), including attending all depositions and hearings. There may be many landmines waiting for both local and outside counsel, depending on the jurisdiction.

This panel would discuss the benefits of local counsel, things to avoid, and ethical/compensation related issues. The panel could consist of an attorney that often serves as local counsel, an attorney that often hires local counsel as outside counsel, and a judge that frequently sees retention of local counsel (to provide that judge's views on what works, what doesn't, and things to avoid). This panel would discuss the benefits of local counsel, things to avoid, and ethical/compensation related issues. The panel could consist of an attorney that often serves as local counsel, an attorney that often hires local counsel as outside counsel, and a judge that frequently sees retention of local counsel (to provide that judge's views on what works, what doesn't, and things to avoid). Business Tim Anzenberger tim.anzenberger@arlaw.com Adams and Reese LLP

A Claim Is Unliquidated if It Requires the Exercise of Judgment or Discretion

Tort claims are usually unliquidated, but a contract claim is liquidated if it’s precisely determinable by agreement or operation of law, Judge Lori Vaughan says.

Appeals

Litigation Skills

Eligibility for Subchapter V: The Meaning of “Engaged in Commercial or Business Activity”

June 2025

Stepping Up: Transitioning Successfully to a Mid-Level Bankruptcy Associate

Transitioning from a junior bankruptcy associate to a mid-level bankruptcy associate can sometimes feel like climbing the staircases at Hogwarts: difficult and uneasy at first, but it eventually becomes second nature. As a junior associate, one learns the fundamentals of bankruptcy law, fine-tunes research skills, and finds an understanding of how to work with managing and senior associates and partners. Stepping into a mid-level position requires letting go of the handrails and transitioning into managing up and down, engaging with clients, and running the day-to-day of cases.

Supreme Court to Rule on Waiver of Sovereign Immunity for Suits Under Section 544(b)(1)

To resolve a circuit split, the Supreme Court has agreed to decide whether a trustee can sue the government to recover a fraudulent transfer under state law when sovereign immunity would bar an ‘actual creditor’ from suing.

A Contest of Wills, or Deference Due? Arbitration and Bankruptcy

Aug 2024

Misleading Ads to Poach a Debtor’s Customers Is No Stay Violation, Circuit Says

The Second Circuit gives competitors license to mount false advertising unless it’s ‘virtually certain’ to affect a debtor’s customer contracts or goodwill.