Here’s an aggregation of some of my Twitter posts from May 16-24, 2018, with links to important cases, articles, and news briefs that restructuring professionals will find of interest. Don’t hesitate to reach out and contact me to discuss any posts. Thanks for reading!
BK RELATED CASES:
- 9th Cir.: Tax-sale buyer & prior owner of contaminated property had a “contractual relationship” through the tax deed, so CERCLA’s 3d party defense to liability (which exempts facility owners from liability for contamination if a 3d party caused the contamination & as long as the owner did not have a contractual relationship with the third party) did not apply to a tax purchaser. California Department of Toxic Substances Control v Westside Delivery LLC
- BAP-10: “The determination of the factors that justify separate classification of claims is a question of law reviewed de novo, but whether the requisite factors have been established is a question of fact reviewed for clear error.” In re Novinda Corp
- CD-CA: Even if DHCS didn’t know the amt of its claim before BK filing, it could fairly contemplate the existence of its Hospital Quality Assurance quarterly fee. This is enough to satisfy the fair contemplation test, so the claim is not administrative. In re Gardens Regional Hospital and Medical Center Inc
- D-IL: A creditor’s judgment lien attaches to a debtor’s contingent future interests in property held as tenants by the entirety, but those contingent future interests—like the tenancy interests themselves—are exempt under § 522(b)(3). Jaffe v Williams
- BK-DE: Judge Shannon finds Till rate in Chapter 13 plan should be prime plus 2% for an auto loan, stating: “The Court is not persuaded by Ally’s arguments that a 3% adjustment is necessary due to a rapid depreciation rate of cars.” In re Burton
- BK-ND-GA wades into the murky waters of alleged fraudulent transfers of LLC interests, examining the nature of the rights assigned, the timing of the transfer, and the value of the interests transferred. In re White
- BK-ND-IL: Judge Thorne holds that a same-sex couple with a “Certificate of Civil Union” under IL law, but not a certificate of marriage, were the substantive equivalent of married under IL law & so were “spouses,” eligible to file a joint Ch 13 petition. In re Simmons
INTERESTING CASES FROM ILLINOIS COURTS:
- IL AP 1: Future Chief Justice Neville of the Illinois Supreme Court presiding rules that if a general release references a specific claim, but there was a second claim known to one party and not the other, then the general release is limited to the specific claim referenced. Young v Meadows
- IL AP 1: A $210,000 charge for one day of surgery is “not reasonable under any definition of reasonable.” Illinois Neurospine Institute PC v Maczuga
- IL AP 1: A foreclosure buyer’s payment of condo assessments can occur after confirmation of the foreclosure sale, but should include assessments accruing the month following the foreclosure sale, not the sale’s confirmation. V And T Investment Corporation v West Columbia Place Condominium Association
LAW RELATED NEWS & ARTICLES:
- Finders’ Fees: “Whether an intermediary is acting as a finder or an unregistered broker-dealer is a fact-specific analysis and can often be complex. Unfortunately, frequently a third party assisting with capital-raising will be acting as a broker-dealer, not a finder.” Finders and Unregistered Broker-Dealers, by Eric Smith and Mario Richards of Venable
- Judge Posner: What has happened to Judge Posner? Posner brief accuses judge of laziness for copy-and-paste order via ABA Journal
- Mineral Rights: Judge Shannon (B-DE) “heard oral arguments Tuesday on whether GP Iron Ore Prop had the right to pull its mineral rights at the Mesabi Metallics Nashwauk mine site out of a bankruptcy agreement and sell them to Cleveland-Cliffs.” Federal judge hears Nashwauk mineral lease arguments via Duluth News Tribune
- Sanctions: Looking at the impact of Iran sanctions on US and foreign companies and asking: “What exactly does it mean to “wind-down” transactions?” Withdrawal of U.S. From Iran Nuclear Deal and the Impact on U.S. and Non-U.S. Companies, by Karen McGee, Linda Weinberg & Clinton Yu of Barnes & Thornburg
LIFE AND THE WORLD GENERALLY:
- “Bullshit” Jobs: David Graeber writes in his new book “Bullshit Jobs!” about 5 types of “bullshit jobs”: flunkies (who exist to make bosses look good), goons (who exist bec others employ goons), duct-tapers,box-tickers, and taskmasters. Why do pointless jobs exist?: ‘Bullshit Jobs’ provides a thought-provoking examination of our working lives via FT
- CBS v. Redstone: “No matter who emerges the victor in what promises to be a prolonged series of courtroom showdowns, both companies will be profoundly affected, and the broader media landscape fundamentally transformed.” A Battle for Control of CBS, With Far-Reaching Consequences via NYT
- Chicago’s Corruption: Univ. Illinois-Chicago publishes its “Anti-Corruption Report No. 10,” titled “Continuing Corruption in Illinois.” It starts: “Chicago continues to be the most corrupt city in the country and Illinois continues to be the third most corrupt state.” Report: Chicago most corrupt city in U.S. via ABC-7 News
- Faith from Golf: If this doesn’t restore your faith, nothing will. “Ben Bender, 93, caps golf 66-year golf career with hole-in-one.” Ben Bender, 93, caps 66-year golf career with hole-in-one: Two aspects of Ben Bender’s life – faith and golf – came together for his final round on the course via USA Today
- Marketing – Big Ticket Events: The success of this test with the marketing of Taylor Swift’s concerts will cause others to test similar strategies in other hot ticket venues, including NBA, NHL, MLB, and NFL playoffs. Why Empty Seats at Taylor Swift’s Concerts Are Good for Business: Pricier tickets aimed at squeezing out scalpers and delivering higher returns to promoters are producing fewer instant sellouts via WSJ
- MoviePass Economy: “For consumers willing to do their research this can be a golden age of deals. We can get our movie tickets and pecan-crusted salmon meal kits, reaping the benefits of artificially cheap goods and services while investors soak up the losses.” The Entire Economy Is MoviePass Now. Enjoy It While You Can via NYT
- Plastics Pollution: “China stopped taking shipments of U.S. mixed paper and mixed plastic in January. Steve Moore said mixed-paper shipments to other Asian countries now fetch $5 a ton, down from as much as $150 last year. … In the long run we are going to have to address our wasteful love affair with packaging and disposable containers.” Recycled Materials Must Be Clean Enough to Reuse via WSJ
- Quantum Computing: “Computers made up of quantum bits (or qubits) that can be in two states at once, or “entangled” in ways that lead them to act in unison, could enable computers that are a million times or more faster than current machines.” Time to invest in skills for quantum computing revolution: Practical quantum machines are likely to arrive much sooner than expected via FT
- Royal Romance: “After his disastrous marriage to Diana, Charles came to rely heavily on Camilla. Diana referred to her as ‘the enemy’ and ‘the Rottweiler.’ ” ‘The Duchess’ Review: How to Survive a Royal Romance via WSJ
- Turkey’s Financial Instability: “How can you invest in a country when the guy doesn’t believe in basic interest rate theory?” said one person with knowledge of the discussion. “Turkey almost looks uninvestible.” Investors lose their appetite for Turkey: Erdogan sends uncompromising message he is intent on taking control of monetary policy via FT
- Yanny v. Laurel: My son agrees with me that it’s Yanny, but my daughter says it’s Laurel. Yanny or Laurel? Your Brain Hears What It Wants To: Debate over viral audio clip is latest example of a sensory illusion, psychologists say, via WSJ
©2018, Steve Jakubowski