New Opinions

June 22, 2021 roland jones

Northern District of Illinois – Focus of Inquiry Regarding Reasonably Equivalent Value Must Be On A Specific Transfer That A Trustee Seeks to Avoid Rather Than On Analysis of The Transaction’s Overall Value To A Debtor

An Illinois Judge dismissed a trustee’s complaint because the trustee failed to allege facts to support the element of lack of reasonably equivalent value.

June 15, 2021 roland jones

An IIlinois Bankruptcy Court – A Corporate Fiduciary Need Not “Give Up” His Contractual Rights To His Detriment To Fulfill His Fiduciary Duty

The Court dismisses Trustee's fraudulent transfers and breach of fiduciary duty claims because neither could the trustee prove a transfer, nor breach of duties.

June 8, 2021 Suchika Mehra

A Connecticut Court Denies Defendants’ Motion To Dismiss, Alleged Assets Were Transferred For Less Than Reasonably Equivalent Value

The Court denies a defendants’ motion to dismiss because trustee sufficiently supports its constructively fraudulent claims with plausible facts.

June 4, 2021 roland jones

A Virginia District Court Denies Defendants’ Motion to Withdraw Reference, Finds Defendants Had Already Submitted to the Bankruptcy Court’s Equitable Jurisdiction

A Motion for withdrawal for reference was denied since trustee’s claims were “core” and defendants had submitted to the bankruptcy court’s jurisdiction by filing proofs of claims and receiving administrative fees.

May 30, 2021 roland jones

Bankruptcy Court for Southern District of New York: Pre-Petition Claims May Not Set-Off Against Post-Petition Claims Under Doctrine of Mutuality

The Bankruptcy Court for Southern District of New York recently concluded that the defendant investment institutions are liable for breach of contract and turnover of property because their purported setoffs were invalid and their safe harbor defenses failed.

May 18, 2021 roland jones

A New York Bankruptcy Court Allows Level 8 Apparel Trustee to Use the Doctrine of Equitable Tolling and Extend the One-Year Statute of Limitation For the Claim

A Chapter 7 trustee recently brought an action against insider defendants to avoid transfers under 11 U.S.C.S. §§ 548(a)(1)(A) and 544(a) and (b) of the Bankruptcy Code and N.Y. Debt. & Cred. Law § 276.

May 17, 2021 roland jones

Delaware Bankruptcy Court Allows Ashinc Corp. Trustee to Recover Value of Fraudulent Transfers, Rules on Multiple Other Issues

The case refers to a dispute resulting from two complaints that were asserted against Defendants Yucaipa American Alliance Fund I and Yucaipa American Alliance (Parallel) Fund I and certain individuals in In re Ashinc Corporation and In re Allied Sys. Holdings bankruptcy cases.

April 9, 2021 roland jones

A Florida Court Rules in Favor of a Title Insurance Company Because Plaintiff Failed to Meet His Burden of Proof on Issue of Reasonably Equivalent Value

The Court ruled that a debtor's transfer of assets to a defendant was not avoidable as a fraudulent transfer under 11 U.S.C.S. § 548 and Fla. Stat. §§ 726.105, 726.106, because the debtor transferred tangible assets in exchange for the defendant's assumption of debtor's title insurance policy liabilities.

March 23, 2021 roland jones

An Indiana Court Permits ITT Educational Services Trustee to Clawback About $200k Preference Transfers from a Leading Publishing Company

Trustee Deborah J. Caruso for the bankruptcy estates of ITT Educational Services, Inc. and others sued Defendant John Wiley & Sons, Inc. to recover alleged preference payments from the Defendant under § 547 of the Bankruptcy Code.

March 2, 2021 roland jones

Sections 546 (e) and 561 (d) Are Limited to Avoidance Claims, Do Not Explicitly Bar Foreign Common Law Claims

The Court denied the Defendants motion for reconsideration based on their argument that the constructive trust claims were barred by the safe harbor.