Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Trustee Liability and the Curious Case of Maxwell v. KPMG, LLP
Last year, Judge Richard A. Posner of the Seventh Circuit Court of Appeals wrote an opinion that sent shockwaves throughout the bankruptcy community, particularly in trustee circles. The shocking part of Maxwell v. KPMG, LLP, 520 F.3d 713 (7th Cir. 2008) (“Maxwell I“) was not its holding, but its dicta. In affirming the dismissal of a bankruptcy trustee's $600 million accounting malpractice case, the Seventh Circuit admonished bankruptcy judges to “be vigilant in policing the litigation judgment exercised by trustees in bankruptcy,” and it also suggested the imposition of personal sanctions against trustees who file frivolous lawsuits. See Maxwell I, 520 F.3d at 718-719.
Some commentators have applauded Maxwell I as just deserts for a bankruptcy trustee who brought suit based on overly aggressive theories of liability and damages. Others have been troubled by the Seventh Circuit's criticism of bankruptcy trustees and its unsupported suggestion of personal sanctions against plaintiff trustees. However, almost all commentators have correctly regarded Maxwell I as a cautionary tale for any trustee embarking upon an aggressive litigation strategy.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.