Bankruptcy

Crocs, Lawsuits, Warning Labels and Neal Boortz

Posted on September 11, 2008
This is off-topic, except to the extent that it does relate to the financial condition of companies and sometimes these issues lead to Bankruptcy.  Crocs are cheap plastic shoes, but very trendy nonetheless for some reason.  Like flip flops and similar shoes, one can generally look at them and know that are not sturdy shoes...

Bankruptcy Court Order Dismissing Adversary Was Final Appealable Order Notwithstanding Absence Of Entry Of Judgment By Clerk Of Court

Posted on September 09, 2008
Klauman v. GMAC Mortg., LLC, Slip Copy, 2008 WL 4098947 (M.D.Ga. August 28, 2008) (J. Land). Debtors filed a class action against Defendant alleging that Defendants added undisclosed fees during their Bankruptcy case.  The Bankruptcy Court entered an Order dismissing the adversary for lack of subject matter jurisdiction on April 10, 2008: Since [Debtors] fail to allege an injury in fact, the court must dismiss this case pursuant to FRCP 12(b)(1) for lack of subject matter jurisdiction...

Duke Has The Worst College Football Team In America, As A Matter Of Law?

Posted on September 08, 2008
The university's lawyers seem to think so, and have said so in court!  For background, go to the comprehensive post on the N.C. Business Litigation Blog, and the follow-up post here, but I'll summarize. The University of Louisville filed suit against Duke University in Kentucky state court because Duke backed out of a contract to play a four game series against Louisville (read the complaint)...

Doctrine Of Equitable Mootness Does Not Protect Debtor's Counsel From Disgorgement Of Fees

Posted on September 08, 2008
From law.com,  Winstead Ordered to Disgorge up to $500,000 in Bankruptcy Case: A 5th U.S. Circuit Court of Appeals opinion that one former bankruptcy judge calls "scary" for lawyers requires Dallas-based Winstead to disgorge up to $500,000 in attorney fees the firm received for its work on the restructuring of a restaurant chain that filed for bankruptcy...

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Georgia School Superindendent Kathy Cox Wins $1 Million On "Are You Smarter Than A 5th Grader?"

Posted on September 06, 2008
... and the remaining Clayton County School Board members need some of those fifth graders to help them figure out how to hold a meeting.

Eighth Circuit Says Bankruptcy Lawyers Can Advise Clients To Run Up Pre-Bankruptcy Debt

Posted on September 05, 2008
In  Milavetz, Gallop & Milavetz, P.A. v. U.S.,  --- F.3d ----, 2008 WL 4068448 (8th Cir. September 4, 2008) (click here for .pdf), the Eighth Circuit struck down the part of the Bankruptcy Code that prohibits lawyers from telling their clients they cannot incur more debt before filing a petition...

Atlanta Bankruptcy Lawyer Hayden Kepner Debates Neal Boortz On Fair Tax

Posted on September 05, 2008
Hayden Kepner, a bankruptcy partner at Scroggins & Williamson, recently participated in a roundtable debate over the Fair Tax. The debate was moderated by CNN's Rick Sanchez, and included  Neal Boortz, John Linder, and others. You can access the video of the debate, which aired on CNN, by clicking here.

Discount Clothing Chain Goody's Family Clothing Files Chapter 11 - Will Close Nine Georgia Stores

Posted on June 10, 2008
From the Atlanta Business Chronicle - Discount clothing retailer Goody's Family Clothing Inc. has filed for Chapter 11 bankruptcy protection blaming pressures from tightening credit markets, strain on merchandise flow and dozens of underperforming stores in the chain...

Atlanta Based Credit Card Marketer CompuCredit Charged With Deceptive Marketing And Abusive Debt Collection Tactics

Posted on June 10, 2008
From the Atlanta Business Chronicle - The Federal Trade Commission has sued Atlanta-based credit card marketer CompuCredit Corp. and its debt collection unit Jefferson Capital Systems LLC, charging them with using deceptive marketing and abusive debt collection tactics on consumers in the subprime market...

Practice of North Georgia Residents Filing Bankruptcy In Chattanooga Might Come To An End

Posted on June 10, 2008
By Scott B. Riddle, Esq.It has been a common practice for residents of northeast Georgia to file bankruptcy petitions in Chattanooga, Tennessee rather than Rome, Georgia, in spite of the Bankruptcy Code's requirement that cases be filed in the district in which the debtor resides...

Cheerwine Coming Back To Atlanta

Posted on June 09, 2008
Obviously not bankruptcy related, but former North Carolinians will be interested in Cheerwine coming back to Atlanta (the article incorrectly says it is making its debut - it was sold in Atlanta grocery stores a few years ago). Tar Heels, rejoice! Cheerwine, one of our state's indigenous delicacies, is now available in the ATL...

Latest Bankruptcy Statistics, Mortgage And Foreclosure Updates

Posted on June 05, 2008
From the Administrative Office of the U.S. Courts, via Law.com, bankruptcy filings are up 30% for the twelve month period ending March 31, 2008.  It is not a surprise that Georgia is near the top - The top five states for bankruptcy filings per capita in the 2008 data are Tennessee, 6...

Delaware Bankruptcy Court: Breach of Fiduciary Duty Claim Was Not Disguised Deepening Insolvency Claim; Aiding And Abetting Fraudulent Conveyance; In Pari Delicto

Posted on June 05, 2008
From the Delaware Bankruptcy Blog, comes the case of  Miller v. McCown De Leeuw & Co., Inc. (In re Brown Schools), No. 05-10841, Adv. No. 06-50861 (Bankr. D. Del. April 24, 2008).Duty of care violations more closely resemble causes of action for deepening insolvency because the alleged injury in both is the result of the board of directors’ poor business decision...

New York Times Article On Kirk Wright Suicide And Continuing Litigation Involving NFL Players And Union

Posted on June 03, 2008
By Scott B. Riddle. Esq. The New York Times has an article about the recent suicide of Kirk Wright (discussed in this post). See Hedge Fund Manager's Death Does Not Halt Suit Against N.F.L. and Players Union by Mike Tierney. Six former players, including the star defensive backs Steve Atwater and Blaine Bishop, are involved in a two-year-old civil suit against the Players Association and the N...

Article: Wave Of Litigation From Subprime Crisis

Posted on June 03, 2008
Corporate Counsel and Law.com have an article about litigation arising from the subprime mortgage meltdown.  The article is entitled Wipeout: Subprime Crisis Spawns Wave of Litigation, by Sherry Karabin. Among the highlights: A new study by Navigant Consulting Inc...

Dischargeability Of Stated Income Loans ("Liar Loans") Based Upon Material Misrepresentations Of Income

Posted on June 01, 2008
By: Scott B. Riddle, Esq. From Conglomerate (and now the Wall Street Journal) comes the recent decision in National City Bank v. Hill (In re Hill), Adv No. 07-4106, Ch. 7 Case No. 07-41137 (Bankr. C.D. Ca. May 23, 2008) (click here for .pdf of opinion)...

Countrywide Fires Back In Lawsuit Filed By United States Trustee (In re Atchley)

Posted on June 01, 2008
By: Scott B. Riddle, Esq.In this February 29, 2008 post, I discussed the adversary complaint filed in the Northern District of Georgia against Countrywide by the Office of the United States Trustee.  See Walton, United States Trustee v. Countrywide Home Loans, Inc...

Kirk Wrights Commits Suicide Before Sentencing

Posted on May 25, 2008
Kirk Wright, recently convicted of a massive fraud, and head of Chapter 11 Debtor International Management Associates (discussed in previous posts here, here and here) committed suicide on Saturday, prior to being sentenced.  From the AJC -  Wright, 37, was found dead Saturday in the cell, where he was being held for federal authorities while awaiting sentencing...

UK Guardian Article: Why Delaware And New York Get Largest Chapter 11 Case, And Why Chicago Does Not

Posted on May 23, 2008
The Guardian has an article about the dominance of Delaware and New York when it comes to large Chapter 11 cases. The choice of judge and court is often seen as particularly important in bankruptcy cases where there are no juries and limited ability to appeal the decisions made by that judge...

Several Related Real Estate Entities File Chapter 11 Petitions In Northern District

Posted on May 22, 2008
It looks like the real estate slide continues, as these related entities filed Chapter 11 petitions in the Northern District -   08-69440-mhm 11 GT Architecture Contractors Corp Murphy   Filed: 05/20/2008 Entered: 05/20/2008 Office: Atlanta Asset: Yes Fee: Paid County: Clayton 08-69445-mhm 11 Southside Grading, Inc...

The Other Side Of Bankruptcy: Buying Foreclosures

Posted on May 20, 2008
By: Scott B. Riddle, Esq.If you have been reading real estate Bankruptcy blogs and headlines, you know foreclosures are up. Way up.  Georgia, and Atlanta in particular, are amount the nations leaders in that respect.  That naturally crates a market for individuals or companies who have the ability to invest in foreclosed properties...

Federal Reserve Bank Of New York Interactive Map Of Non-Prime Mortgages In United States

Posted on May 13, 2008
The Federal Reserve Bank of New York has posted Dynamic Maps of Non-Prime Mortgage Conditions in the United States. The interactive map is searchable by state and ZIP code, and provides quite a bit of information on mortgage loans.Thanks to Jeb Howell of Auction Management Corporation for the link.

Delaware Chancery Court Holds Directors Did Not Breach Fiduciary Duty To Creditors By Filing Chapter 11 Petition

Posted on May 10, 2008
From the Delaware Litigation Blog comes the case of  Nelson v. Emerson, 2008 WL 1961150 (Del. Ch., May 6, 2008) (the opinion is linked from the Delaware Litigation Blog), where the one major secured creditor alleged the directors of the corporation breached their fiduciary duty to the creditor by filing a Chapter 11 petition and paying themselves excessive compensation...

Countrywide Admits Bankruptcy Errors, Tells Senate It Is Making Changes To Avoid Similar Errors In The Future

Posted on May 06, 2008
From CNNMoney.comThe Countrywide executive told a U.S. Senate Judiciary subcommittee that the company was taking new steps to address concerns that have led to an outcry from consumer advocates and that were the catalyst for Tuesday's hearing. Bailey said Countrywide plans to hire an independent auditor to review its treatment of loans whose borrowers have filed for bankruptcy...

Pre-Foreclosure Day Chapter 11 Cases

Posted on May 06, 2008
It was not a very busy pre-foreclosure week in the Northern District, as far as new Chapter 11 petitions, but a few cases were filed in the last several days -- 08-21204-reb 11 MM Acquisition, LLC Filed: 05/02/2008 Entered: 05/02/2008 08-68330-crm 11 Markee William Brown Jr...

ND Ga - Chapter 7 Trustee Could Neither Assign Tort Claim Nor "Conditionally Abandon" Valuable Cause Of Action

Posted on May 03, 2008
In re Allen, Ch. 7 Case No. 01-82408-MHM, 2008 Bankr LEXIS 366 (Bankr. N.D. Ga. February 14, 2008). Debtor’s pre-petition state law cause of action was property of the Chapter 7 Estate, with a value that likely exceeded the liabilities of the Estate...

ND Ga - Compensation For Chapter 11 Counsel After Appointment of Chapter 11 Trustee And Then Conversion Of Case To Chapter 7

Posted on May 03, 2008
Two recent opinions from the Northern District  (in the same Bankruptcy case) concern debtor's counsel's right to attorneys fees where, first, a Chapter 11 Trustee is appointed and then the case is converted from a Chapter 11 to a Chapter 7:In re Patterson,  Case No...

Fifth Circuit Says "No" To Full Hourly Rate For Travel Time

Posted on May 02, 2008
From the Wall Street Journal Legal Blog - Tax firm Caplin & Drysdale was appointed national counsel for the asbestos claimants’ committee in the bankruptcy of Babcock & Wilcox, a maker of boilers and generators. The firm sought about $6...

Linens N' Things Finally Files Chapter 11

Posted on May 02, 2008
After being on the verge of a filing for many months, Linens N' Things finally pulled the trigger.  According to this article in the Atlanta business Chronicle, the following local stores will close -It will close stores at Perimeter Mall in Atlanta, Uptown Square Shopping Center in Fayetteville, Stonecrest Marketplace in Lithonia, Macon Mall in Macon and Southlake Pavillion in Morrow...

Georgia Still Second In The Nation In Rate Of Personal Bankruptcy Filings

Posted on May 01, 2008
 From the May 2, 2008 Atlanta Journal Constitution - Georgia ranked No. 2 nationally for its rate of consumer bankruptcy filings in the first quarter of the year. The bankruptcy courts statewide processed 12,981 consumer filings during the quarter, up 16 percent from the same period in 2007...

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