Joy Harmon Sperling on Stalford v. Lion Financial, LLC (In re Lancaster Mortgage Bankers, LLC), 2008 Bankr. LEXIS 1776, Ch. 7 Case No. 07-22479, Adv. No. 08-01028 (Bankr. D.N.J. June 4, 2008)

Lancaster Mortgage Bankers was in the business of originating and selling residential mortgage loans. Lancaster would execute a mortgage assignment and generally register the assignment with the Mortgage Electronic Registration System (MERS) rather than record it with the county recording offices. After...

Arnoldo Wald and Rodrigo Garcia Da Fonseca on the Interclinicas Case

In the Interclínicas case, Interclínicas argued that a decree of its extrajudicial liquidation amounted to a supervening cause of invalidity of an arbitration clause. In addressing this argument, Brazil’s Superior Court of Justice issued a landmark decision in a thorny issue faced...

FREE DOWNLOAD: Backgrounder -- Financial Derivatives: Safe Harbors in Bankruptcy

The current financial crisis has highlighted the fact that the complexity of certain financing and financial instruments made it virtually impossible to determine the true extent of the risk faced by lenders and other financial companies. Since the collapse of Lehman Brothers and the bailout of major...

Foley & Lardner on the Yellowstone Club Case: New Concerns Are Raised Regarding Subordination of Secured Creditors Claims

In May 2009, the United States Bankruptcy Court, Montana District, issued an interim order causing serious concern to secured creditors counting on the priority of their claim against a debtor’s bankruptcy estate. In this commentary, Cherie Raidy and Archana Acharya of Foley & Lardner LLP discuss...

Distressed Acquisitions: Brave New World or Variation on a Familiar Theme?

Distressed M&A activity continues to be one of the most active segments of the deal market despite signs of improvement in the economy and recovery in the credit markets. Discussions of rights plans and "go shops" are being replaced by fraudulent conveyance risk, 363 sales and plans of...

Supreme Court Wants Solicitor General Comments On Bankruptcy Conflict

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on June 20 asked the U.S. solicitor general for comment on a bankruptcy case in which the Bankruptcy Code and the Real Estate Settlement Procedures Act (RESPA) are in conflict as it relates to a lender's right to require debtors to deposit...

The Anna Nicole Smith Case: Bankruptcy Courts Lack Constitutional Authority On Compulsory Counterclaims

WASHINGTON, D.C. - (Mealey's) A divided U.S. Supreme Court on June 23 affirmed a Ninth Circuit U.S. Court of Appeals ruling that a bankruptcy court lacks the constitutional authority to enter final judgment on compulsory counterclaims to proofs of claim in bankruptcy proceedings ( Howard K. Stern...

Tribune Reaches $32 Million Agreement With Former Employees To Settle ERISA Claims

CHICAGO - (Mealey's) The Tribune Co., which is in Chapter 11 bankruptcy, announced Oct. 20 that it has reached a $32 million settlement with former employees who had sued the company alleging violations of the Employee Retirement Income Security Act of 1974 (ERISA), which may provide Tribune with...

3rd Circuit Decides Landmark Case Involving Ethics and Technology

A landmark case involving ethics and technology has reached its conclusion with an opinion from the Third Circuit Court of Appeals that an attorney cannot blindly rely on information provided by an automated system, especially when the accuracy of that information has been called into question. In re...