Judge Orders Accounting Firm's Insurer To Pay $10M To Bankruptcy Estate

FORT LAUDERDALE, Fla. - A Florida federal bankruptcy judge on April 9 granted a motion by the Chapter 11 trustee of the law firm once headed by convicted Ponzi scheme operator Scott Rothstein to compel the insurer of an accounting firm, which allegedly enabled the Ponzi scheme, to pay $10 million to...

Bankruptcy Judge: Insurance Carriers May Pay Defense Costs In MF Global Case

NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of MF Global Holdings Ltd. (MFGH) in the U.S. Bankruptcy Court for the Southern District of New York on April 10 ruled that the automatic stay could be lifted in the case to allow the payment of certain defense costs using...

Alternative Dispute Resolution Proposal By Hostess Should Be Changed, Insurers Say

NEW YORK - An insurance company and its affiliate on May 24 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to a motion by bankrupt Hostess Brands Inc. that seeks to use alternative dispute resolution (ADR) as a means of resolving various claims in its Chapter...

Federal Bankruptcy Judge Dismisses Breach Of Contract, Subrogation Case

WILMINGTON, Del. - A bankruptcy judge in Delaware on Oct. 4 dismissed an insurance claims breach of contract case, saying the court lacked jurisdiction to hear the dispute ( In re Washington Mutual Inc., et al., No. 08-12229, D. Del. Bkcy.; 2012 Bankr. LEXIS 4673).

Dewey & LeBoeuf Executives: $19.5M Deal With Insurer Lacks 'Supportable Basis'

NEW YORK - Two former executives with bankrupt law firm Dewey & LeBoeuf on May 2 filed a brief objecting to the more than $19.5 million settlement reached among the Dewey & LeBoeuf Liquidation Trust, XL Specialty Insurance Co. and Steven H. Davis, on grounds that the liquidating trustee has failed...

Insurer: U.S. High Court Must Vacate; Bankruptcy Courts Lack Judicial Power

WASHINGTON, D.C. - In a brief made available on Sept. 16, the Executive Benefits Insurance Agency (EBIA) argues that the U.S. Supreme Court should vacate a ruling by the Ninth Circuit U.S. Court of Appeals because Article III of the U.S. Constitution does not permit the exercise of the judicial power...