LexisNexis® Legal Newsroom
Satcon Creditors Oppose Deal That Would Lead To Incurring Post-Petition Trade Debt

WILMINGTON, Del. - A group of secured creditors in the Chapter 11 bankruptcy of alternative energy company Satcon Technology Corp. (STC) on Nov. 27 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to the debtor's emergency motion seeking authorization to enter a settlement in which it would incur post-petition trade debt (In Re: Satcon Technology Corporation, No. 12-12869, Chapter 11, D. Del. Bkcy.).

Kodak Restructuring Officer: Bankruptcy Court Should OK Additional Financing

NEW YORK - The chairman of the restructuring group in the Chapter 11 bankruptcy case of Eastman Kodak Co. on Nov. 19 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that the bankruptcy court should approve additional post-petition funding for Kodak to emerge from bankruptcy quickly (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).

FCC Approves Tribune Licenses; Progress Toward Emerging From Chapter 11 Continues

CHICAGO - Bankrupt Tribune Co. on Nov. 16 issued a statement in which it said that based on the approval it has gained from the Federal Communications Commission for broadcast licenses, the company will be able to emerge from Chapter 11 bankruptcy (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.). Subscriber may view the statement available within the full article.

New York High Court Finds Challenge To Medicaid Benefits Notification Not Moot

ALBANY, N.Y. - The New York Court of Appeals on Oct. 30 affirmed an appellate court order that the state's Department Of Health failed, and will likely continue to fail, to timely respond to requests for emergency medical assistance benefits. The high court agreed that the "likely to recur" mootness doctrine should be applied to the plaintiff's claim seeking damages for lack of notification of benefits availability (Barbara Coleman, etc., v. Richard F. Daines, M.D., etc.,  No. 152, N.Y. App.; 2012 N.Y. LEXIS 3263).

City Of Atwater, Calif., Officially Says It Has Declared Fiscal Emergency

ATWATER, Calif. - An official in the City of Atwater, Calif., on Oct. 8 confirmed that the City Council has declared a fiscal emergency, which is seen as the first step toward officially filing for Chapter 9 bankruptcy.

Atwater, Calif., Council Declares Fiscal Crisis, May File For Chapter 9 Bankruptcy

ATWATER, Calif. - The Atwater City Council on Sept. 19 issued a report in which it recommended that the city manager declare a fiscal emergency pursuant to state code in order to prepare the way for the municipality to file a Chapter 9 bankruptcy petition.

Sallie Mae Reaches $24M Settlement In Telephone Debt Collection Class Action

SEATTLE - Student loan borrowers and a subsidiary of SLM Corp. on Sept. 17 agreed to settle claims that the subsidiary violated the Telephone Consumer Protection Act (TCPA), 47 U.S.C.S. § 227, by making a number of non-emergency autodialed calls and/or automated text messages to the borrowers' cellular telephones in an attempt to collect on outstanding student loan debt, according to documents filed in a Washington federal court (Mark A. Arthur, et al. v. Sallie Mae Inc., No. 10-0198, W.D. Wash.).

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Stay Denied In California Dispute Over 'Muscle Power' Trademark

SACRAMENTO, Calif. - A California federal judge on Sept. 6 denied a defendant's request for an emergency stay in a longstanding trademark infringement case (CytoSport Inc. v. Vital Pharmaceuticals Inc., No. 08-2632, E.D. Calif.). Subscribers may view the decision available within the full article.

3rd Circuit: Bond Order Appeal 'Moot' In Tribune Chapter 11 Bankruptcy

PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on Sept. 10 dismissed as moot a creditor's motion seeking an emergency stay of a bond order in the Chapter 11 bankruptcy proceeding of Tribune Co. (In Re: Tribune Company, No. 12-3437, Chapter 11, 3rd Cir.). Subscribers may view the order available within the full article.

9th Circuit Accepts Appeal Of Remand Order But Denies Stay Of Trial

LOS ANGELES - The Ninth Circuit U.S. Court of Appeals on Sept. 6 accepted Lorillard Tobacco Co.'s appeal of a remand order and ordered expedited briefing but denied its emergency motion seeking to stay the state court asbestos case set for trial (Dimitris O. Couscouris, et al. v. Hatch Grinding Wheels Inc., et al., No. 12-56446, 9th Cir.).Subscribers may view the order available within the full article.

Bankrupt San Bernardino Emergency Budget Aims To Cut Deficit By $27.89M

SAN BERNARDINO, Calif. - The City Council for San Bernardino, Calif., on Sept. 5 approved an emergency budget that will reduce expenses by 30 percent and aims to reduce the city's $45 million deficit to slightly more than $16.42 million (In Re: City of San Bernardino, California, No. 12-28006, Chapter 9, C.D. Calif. Bkcy.). Subscribers may view the emergency budget  available within the full article.

Bankrupt Hostess CEO: Deal With Union Close, May Pave Way Out Of Chapter 11

NEW YORK - The CEO of bankrupt Hostess Brands Inc. on Aug. 20 sent a letter to employees indicating that the company had reached a breakthrough with its largest union regarding modification to the collective bargaining agreement (CBA), which may help pave the way for Hostess to emerge from bankruptcy (In Re:  Hostess Brands Inc.,  No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).

Chapter 9 Bankruptcy Imminent As San Bernardino Declares Fiscal Emergency

SAN BERNARDINO, Calif. - The San Bernardino City Council on July 18 voted 5-2 to declare a fiscal emergency, which allows it to file Chapter 9 bankruptcy without first negotiating with its creditors. City officials said they expect to file a petition in the next 30 days.

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A&P Seeks Order Enforcing Cost Reduction Agreement With One Of Its Unions

NEW YORK - Bankrupt grocer The Great Atlantic & Pacific Tea Co. on July 6 moved in the U.S. Bankruptcy Court for the Southern District of New York to enforce an agreement with one of its unions that had agreed to make cost reductions to help the company emerge from Chapter 11 bankruptcy (In Re: The Great Atlantic & Pacific Tea Company Inc., No. 10-24549, S.D. N.Y. Bkcy).

Harrisburg City Council Sues Governor For Declaring Crisis That Led To Bankruptcy

HARRISBURG, Pa. - The Harrisburg City Council sued Pennsylvania Gov. Thomas W. Corbett in the U.S. District Court for the Middle District of Pennsylvania on June 26, arguing that the governor violated the due process clause of the U.S. Constitution when he declared the fiscal emergency that led to the city's filing for Chapter 9 bankruptcy (Wanda R.D. Williams, et al. v. Governor Thomas W. Corbett, No. 12-1211, M.D. Pa.). Subscribers may view details of the complaint available within the full article.

Judge Dismisses Kmart's Suit Against FEMA Arising From Flood Damage

ABERDEEN, Miss. - Citing a lack of subject-matter jurisdiction, a Mississippi federal senior judge on June 11 granted a motion by the Federal Emergency Management Agency to dismiss Kmart Corp.'s lawsuit seeking recovery of flood damage to one of its Mississippi stores (Kmart Corporation v. The Kroger Co., et al., No. 1:11-CV-001-03-GHD-DAS, N.D. Miss., Eastern Div.; 2012 U.S. Dist. LEXIS 80218).

Orthofix Pleads Guilty, Pays $42M In Fines, Penalties For Device Sales Tactics

BOSTON - Orthofix Inc. on June 7 pleaded guilty to a federal felony count of obstructing a federal audit and agreed to pay nearly $42 million in criminal fines and civil penalties for illegal promotion of its bone-growth stimulators (United States of America v. Orthofix, Inc., No. 1:12-cr-10169, United States of America, ex rel. Jeffrey Bierman v. Orthofix International, N.V., et al., No. 1:05-cv-10557, D. Mass.). Review a complimentary copy of the complete Mealey's Emerging Drugs & Devices Bulletin.

Pennsylvania Federal Judge: Reason For Firing Man With ADHD May Be Pretext

PHILADELPHIA - A black emergency medical technician who suffers from attention deficit hyperactivity disorder (ADHD) failed to show that the ambulance company he worked for discriminated against him because of his race but did make a prima facie showing that he was fired because of his disability, a Pennsylvania federal judge held June 5 (Michael McCarty v. Marple Township Ambulance Corps,  No. 10-5747, E.D. Pa.; 2012 U.S. Dist. LEXIS 77519).

Settlement Agreement Amended To Add Settling Defendants In FEMA Trailer Litigation

NEW ORLEANS - In anticipation of the September fairness hearing to consider the certification of a settlement class and approval of a global settlement in the multidistrict Federal Emergency Management Agency formaldehyde trailer litigation consolidated in the U.S. District Court for the Eastern District of Louisiana, joint stipulations of settlement with contractor defendants and additional emergency housing unit manufacturers were filed May 29 (In re: FEMA Trailer Formaldehyde Products Liability Litigation, No. 07-1873, MDL 1873, E.D. La.). Subscribers may view the joint stipulation of contractor settlement, individual settlement sheets, joint memorandum and manufacturer settlement sheets  available within the full update.

Philadelphia Orchestra Files Reorganization Plan, May Exit Bankruptcy By August

PHILADELPHIA - The Philadelphia Orchestra on May 23 proposed its Chapter 11 reorganization plan in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania, under which all outstanding claims will be resolved by cash payments, paving the way for the orchestra to emerge from bankruptcy on July 31 (In Re: Philadelphia Orchestra Association, et al., No. 11-13098, Chapter 11, E.D. Pa. Bkcy.). Subscribers may view the reorganization plan available within the full update.

California Panel Affirms Decision For Defendant In Medical Negligence Case

LOS ANGELES - In a 2-1 decision, the Second District California Court of Appeal on May 14 upheld a defense judgment in favor of Los Angeles paramedics accused of medical negligence, agreeing that the plaintiff failed to present necessary expert testimony (Dong Jee v. City of Los Angeles Fire Department Emergency Medical Services, No. B234445, Calif. App., 2nd Dist.; 2012 Cal. App. Unpub. LEXIS 3560).

Louisiana High Court: Driver Distraction May Have Caused Auto Accident

NEW ORLEANS - The Louisiana Supreme Court on May 8 overturned a judgment for the plaintiff in an auto accident action, disagreeing with the trial court's determination that the defendant was negligent in leaving a disabled vehicle on the side of a highway (Jeryd Zito v. Advanced Emergency Medical Services Inc., No. 2011-C-2382, La. Sup.; 2012 La. LEXIS 1314).

Judge Narrows Claims In Trade Secrets Suit Over Breathing Device

CONCORD, N.H. - Tort claims based on misappropriation of technical and customer information related to an emergency breathing apparatus are preempted under the New Hampshire Uniform Trade Secrets Act (NHUTSA), a New Hampshire federal judge said May 7, while claims stemming from commercial disparagement are not (Wilcox Industries Corp. v. Mark Hansen, Advanced Life Support Technologies Inc.,  Case No. 11-cv-551-PB, D. N.H.; 2012 U.S. Dist. LEXIS 63668).

Security Company That Works For White House, Other Agencies, Files For Bankruptcy

GREENBELT, Md. - A private company that provides security for the White House and other government agencies filed for Chapter 11 bankruptcy on April 18 in the U.S. Bankruptcy Court for the District of Maryland, citing liabilities of more than $12.9 million and assets of only $7.36 million (In Re: TW & Company Inc., No. 12-17363, Chapter 11, D. Md. Bkcy.). Subscribers may view the petition and emergency motion available within the full update.

Parties File Joint Motion To Certify Settlement Class In FEMA Trailer Litigation

NEW ORLEANS - The parties to the multidistrict Federal Emergency Management Agency formaldehyde trailer litigation consolidated in the U.S. District Court for the Eastern District of Louisiana filed a joint motion April 13 for certification of a settlement class and for preliminary approval of a global settlement of all remaining claims in the litigation; the amount of the settlement is confidential (In re: FEMA Trailer Formaldehyde Products Liability Litigation, No. 07-1873, MDL 1873, E.D. La.).  Subscribers may view the stipulation of settlement, joint brief in support, and proposed settlemet order and individual settlement sheets available within the full update.