LexisNexis® Legal Newsroom
Beauty School Admissions Reps Granted Conditional Certification In Overtime Suit

MINNEAPOLIS - A Minnesota federal judge on July 15 conditionally certified a class of beauty school admissions representatives seeking overtime compensation after first dismissing the reps' record-keeping claims (Michelle Le, et al. v. Regency Corporation d/b/a Regency Beauty Institute, et al., No. 13-391, D. Minn.; 2013 U.S. Dist. LEXIS 98276).

Dewey & LeBoeuf Creditors Say $15M Claim Should Be Allowed Even Though It's Late

NEW YORK - Creditors of bankrupt law firm Dewey & LeBoeuf on July 16 filed a brief arguing that the bankruptcy court should permit them to file a late claim for $15 million as a result of alleged malpractice by one of the firm's attorneys (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

Judge Grants Motion To Compel Arbitration Of Reinsurance Dispute

NEW HAVEN, Conn. - A federal judge in Connecticut on July 12 granted a motion to dismiss and compel arbitration, holding that a valid arbitration agreement exists between a reinsurer and a nonsignatory to a reinsurance agreement (Trenwick America Reinsurance Corporation v. Unionamerica Insurance Company Limited, No. 13-cv-00094, D. Conn.; 2013 U.S. Dist. LEXIS 97518).

Exide Committee: DIP Loan Is 'Extremely Prejudicial' To Unsecured Creditors

WILMINGTON, Del. - The Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy of Exide Technologies on July 16 filed a brief objecting to the company's request for bankruptcy court approval of $500 million in post-petition financing, also known as debtor-in-possession (DIP) financing, on grounds that the case control milestones encompassed in the loan are "extremely prejudicial" (In Re: Exide Technologies, No. 13-11482, Chapter 11, D. Del. Bkcy.).

Directors And Officers Say Shareholder Complaint Should Be Dismissed As Moot

TRENTON, N.J. - Directors and officers of a company told a New Jersey federal court on July 11 that they have remedied a shareholder's complained-of issues and that the shareholder's suit against them is therefore moot (Justin Holland v. New Jersey Resources Corporation, et al., No. 12-cv-07858, D. N.J.).

Cross-Elasticity Of Supply Dooms Attempted Monopolization Claim, 11th Circuit Rules

ATLANTA - The 11th Circuit U.S. Court of Appeals on July 15 affirmed the dismissal of attempted monopolization claims brought by the losing bidder in a bankruptcy auction of a steel mill's assets against the successful bidder, finding that there was high cross-elasticity of supply, which deters monopoly pricing (Gulf States Reorganization Group, Inc. v. Nucor Corporation, No. 11-14983, 11th Cir.; 2013 U.S. App. LEXIS 14187).

2nd Circuit Reverses; Evidence Needed On Automatic Stay Issue In ResCap Bankruptcy

NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on July 15 reversed a District Court ruling and held that more evidence was needed to determine whether the automatic stay applied in a case where the Federal Housing Finance Agency (FHFA) sued the parent and affiliates of Bankrupt Residential Capital (ResCap) related to home loans (Residential Capital v. Federal Housing Finance Agency $(In Re: Residential Capital LLC$), No. 12-3342, Chapter 11, 2nd Cir.).

Judge: Insurer Has No Duty To Defend Counterclaims In Patent Infringement Dispute

SAN FRANCISCO - An insurer has no duty to defend its insured against counterclaims as they are currently pleaded in an underlying patent infringement lawsuit, a California federal judge ruled July 12 (Travelers Property Casualty Company of America v. KFx Medical Corporation, No. C 13-00710 JSW, N.D. Calif.; 2013 U.S. Dist. LEXIS 97777).

U.S. Trustee: OnCure's More Than $425,000 Retainer Does Not Meet Criteria

WILMINGTON, Del. - The U.S. trustee in the Chapter 11 bankruptcy case of OnCure Holdings Inc. on July 12 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to the more than $425,000 retainer the company proposes to pay its bankruptcy counsel, on grounds that it does not meet the criteria for what is called an evergreen retainer (In Re: OnCure Holdings Inc., No. 13-11540, Chapter 11, D. Del. Bkcy.).

ResCap Seeks OK To Make $230M Payment To End Federal Reserve Foreclosure Review

NEW YORK - Bankrupt Residential Capital LLC (ResCap) on July 12 moved for authorization to enter into a consent agreement with the Federal Reserve Board (FRB) and the Federal Deposit Insurance Corp. under which it would pay $230 million to satisfy its payments under the FRB foreclosure review and end the review process (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).

National Envelope Proposes Plan For $67.5 Million In DIP Financing

WILMINGTON, Del. - Bankrupt NE Opco Inc., formerly National Envelope Inc., on July 12 moved in the U.S. Bankruptcy Court for the District of Delaware for approval of an agreement with creditors and lenders that would pave the way for $67.5 million in post-petition financing, also called debtor-in-possession (DIP) financing (In Re: NE Opco Inc., No. 13-11483, Chapter 11, D. Del. Bkcy.).

4th Circuit: Fraud Ruling, Sanctions Proper For Debtor's Discovery Abuses

RICHMOND, Va. - A panel of the Fourth Circuit U.S. Court of Appeals on July 10 ruled that a debtor's repeated violations of discovery orders warranted a decision by a bankruptcy court that denied him the right to present evidence at trial, resulting in his conviction for fraud (Southern Management Corporation Retirement Trust v. Robert Fulton Rood IV, No. 12-2359, Chapter 7, 4th Cir.; 2013 U.S. App. LEXIS 13946).

Bankrupt Video Game Maker THQ Says Liquidation Plan Complies With Bankruptcy Code

WILMINGTON, Del. - Bankrupt video game maker THQ Inc. filed a brief on July 11 arguing that the U.S. Bankruptcy Court for the District of Delaware should approve its plan of liquidation on grounds that it complies with all the provisions of the Bankruptcy Code (In Re: THQ Inc., No. 12-13398, Chapter 11, D. Del. Bkcy.).

San Bernardino Creditors: City Is Eligible For Chapter 9 Bankruptcy

RIVERSIDE, Calif. - A group of creditors in the Chapter 9 bankruptcy of the City of San Bernardino, Calif., filed a brief joining the city's brief arguing that the bankruptcy court should grant summary judgment and rule that it is eligible to be a debtor (In Re: City of San Bernardino, Calif., No. 12-28006, Chapter 9, C.D. Calif. Bkcy.).

Rothstein Trustee: Objections To Liquidation Plan Should Be Dismissed

FORT LAUDERDALE, Fla. - The Chapter 11 trustee in the bankruptcy of former law firm Rothstein Rosenfeldt Adler (RRA) on July 10 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York contending that the U.S. trustee's objections to confirmation of the plan of liquidation should be dismissed (In Re: Rothstein Rosenfeldt Adler, No. 09-34791, Chapter 11, S.D. N.Y. Bkcy.).

Florida Panel: Court Erred In Applying State Arbitration Code To 'Confirm' Award

MIAMI - A Florida appeals panel on July 10 found that a lower court improperly applied the Florida Arbitration Code to "confirm" a $1,058,122.52 appraisal award against an insurer stemming from a Hurricane Wilma claim, reversing and remanding the lower court's ruling against the insurer (Citizens Property Insurance Corporation, etc. v. Mango Hill #6 Condominium Association Inc., No. 3D10-2630, Fla. App., 3rd Dist.; 2013 Fla. App. LEXIS 10974).

11th Circuit: Debtor's Damages Not Caused By Attorney Wrongdoing

ATLANTA - A panel of the 11th Circuit U.S. Court of Appeals on July 10 affirmed a ruling that a debtor's damages could not be blamed on wrongdoing by his attorneys (Sohail M. Abdulla v. Scott J. Klosinski, No. 12-15448, Chapter 7, 11th Cir.; 2013 U.S. App. LEXIS 13960).

California Judge Dismisses Patent Claims Without Prejudice

SAN FRANCISCO - A patent infringement plaintiff lacks standing to maintain its action against a competitor until a related case is resolved, a California federal judge ruled July 10 (CopyTele Inc. v. E Ink Corporation, No. 13-378, N.D. Calif.).

Creditor With More Than $250M In Claims Objects To Kodak's Plan To Offer Only $1

NEW YORK - Creditor STWB Inc. on July 10 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, arguing that bankrupt Eastman Kodak Co. should not be permitted to estimate the amount of certain claims in its Chapter 11 case because doing so would "effectively disenfranchise" STWB of valuable property rights, which are part of its general unsecured claims exceeding $250 million (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).

Bankrupt MSR Says Five Mile Capital Lacks Standing To Convert Case To Chapter 7

NEW YORK - Bankrupt MSR Hotels & Resorts Inc. on July 10 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that Five Mile Capital Partners LLC, which seeks to convert the Chapter 11 bankruptcy to Chapter 7, lacks standing (In Re: MSR Hotels & Resorts Inc., No. 13-11512, Chapter 11, S.D. N.Y. Bkcy.).

NMP Group LLC Files Chapter 11 Bankruptcy To Avoid Loss Of Property At Auction

NEW YORK - Real estate company NMP Group LLC on July 10 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York to avoid having its property sold at auction following foreclosure proceedings (In Re: NMP Group LLC, No 13-12269, Chapter 11, S.D. N.Y. Bkcy.).

California Judge Won't Seal Motion For Judgment On Pleadings In Patent Suit

SAN DIEGO - Although presenting arguments that "appear to be valid," a motion to seal a motion for judgment on the pleadings was denied July 8 by a California federal judge in a patent case (e.Digital Corporation v. Research in Motion Ltd. et al., No. 13-781, S.D. Calif.).

6th Circuit Upholds Goodyear's Summary Judgment Award In CERCLA Suit

CINCINNATI - A Sixth Circuit U.S. Court of Appeals panel on July 9 affirmed an award of summary judgment to Goodyear Tire & Rubber Co., ruling that the company transferred any environmental liability for a facility contaminated by polychlorinated biphenyls (PCBs) when it sold its aerospace subsidiary to Loral Corp. in 1987 (Lockheed Martin Corporation v. Goodyear Tire & Rubber Company, No. 12-4108, 6th Cir.).

Bankrupt Hardware Company Objects To Damages Claim Of More Than $17.55M

WILMINGTON, Del. - Bankrupt Handy Hardware Wholesale Inc. on July 8 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to an additional claim filed by Trans Power Corp. for more than $17.55 million in damages (In Re: Handy Hardware Wholesale Inc., No. 13-10060, Chapter 11, D. Del. Bkcy.).

Mining Company Moves To Dismiss Hong Kong Corporation's Complaint

SAN FRANCISCO - A U.S. mining company on July 8 moved to dismiss all of the claims asserted against it by a Hong Kong corporation in relation to an underlying finance agreement or, in the alternative, requested that all discovery be stayed pending the outcome of arbitration before the Singapore International Arbitration Center (SIAC) (Zhenhua Logistics $(Hong Kong$) Co. Ltd. v. Metamining Inc., et al., No. 13-2658, N.D. Calif.; 2013 U.S. Dist. LEXIS 94071).