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Ninth Circuit Insulates Corporate Insider from Preference Liability
“A corporate insider who personally guaranteed” the debtor's loan was not liable on a bankruptcy trustee's preference claim when the corporate debtor repaid its lender, held the U.S. Court of Appeals for the Ninth Circuit on May 6, 2015. In re Adamson Apparel, Inc. , 2015 WL 2081575 (9th Cir. May 6, 2015) (2-1).
The trustee had alleged that the insider guarantor defendant (“G”) had received an indirect benefit of $4.9 million when the debtor (“Adamson”) repaid its obligation to the lender and that this benefit was a preference under Bankruptcy Code (“Code”) ' 547(b). According to the trustee, the insider guarantor had been relieved of his guarantee liability when Adamson repaid its primary obligation.
Affirming the dismissal of the trustee's claim by the bankruptcy court and the district court, the Ninth Circuit reasoned that G had “previously waived his indemnification rights against” Adamson in good faith and had taken “no subsequent actions to negate the economic impact of that waiver.” Id at *1. Because G was not a creditor ' an essential element of a preference claim (“to or for the benefit of a creditor”) ' he could not be held liable.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.