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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.
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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.
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.
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.
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?