Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
DE Bankruptcy Court Decision Provides Reminder of Potential Consequences of Violating the Automatic Stay
An opinion from the U.S. Bankruptcy Court for the District of Delaware provides a reminder of the potentially severe punishment that a party can suffer as a result of its violation of the automatic stay of Section 362 of the Bankruptcy Code, even if the debtor does not suffer any actual damages as a result of the violation.
In general, the automatic stay forbids creditors from taking offensive actions against a debtor outside of the confines of the debtor's bankruptcy case, including efforts to collect debts or pursue litigation against the debtor, exercise control over the debtor's property, or terminate or interfere with the debtor's property interests. Subsection (k) of Section 362 provides for sanctions in favor of the debtor against creditors who violate the automatic stay.
In In re Healthcare Real Estate Partners (Healthcare Real Estate Partners v. Summit Healthcare REIT), AP No. 16-50981, (Bankr. D. Del. Nov. 14, 2023), a group of petitioning creditors filed an involuntary Chapter 7 petition against the debtor as part of a scheme to terminate the debtor's role as the manager of two investment funds. Following the commencement of the bankruptcy case, the petitioners, in violation of the automatic stay, in fact did terminate the debtor's position as manager of the two funds, and then proceeded to dissolve the two funds.
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
'Huguenot LLC v. Megalith Capital Group Fund I, L.P.': A Tutorial On Contract Liability for Real Estate Purchasers
In June 2024, the First Department decided Huguenot LLC v. Megalith Capital Group Fund I, L.P., which resolved a question of liability for a group of condominium apartment buyers and in so doing, touched on a wide range of issues about how contracts can obligate purchasers of real property.
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.
CoStar Wins Injunction for Breach-of-Contract Damages In CRE Database Access Lawsuit
Latham & Watkins helped the largest U.S. commercial real estate research company prevail in a breach-of-contract dispute in District of Columbia federal court.
The Power of Your Inner Circle: Turning Friends and Social Contacts Into Business Allies
Practical strategies to explore doing business with friends and social contacts in a way that respects relationships and maximizes opportunities.