The majority of courts that
have considered whether there is a cause of action for deepening insolvency
have determined that there is no such thing. Some of those courts have been
very vocally outspoken in opposition to the very existence of such a cause of
action, with good reasons discussed...
Deepening insolvency is alive and well, at least in the Eastern District of New York. That court recently found that deepening insolvency is an appropriate measure of damages resulting from a breach of fiduciary duty claim. Federal Nat’l Mtge. Assoc. v. Olympia Mortgage Corp ., 2014 U.S. Dist....