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Supreme Court Puts End to Prudential Barriers In Chapter 11 Appeals
For decades, insurers seeking to object in their insured's Chapter 11 reorganizations were blocked by the "insurance neutrality" doctrine, a prudential limitation that stopped courts from considering objections on the merits unless the insurer could show a confirmed plan "impair[ed] the insurer's pre-petition policy rights" or "'alter[ed] the quantum of liability'" it faced. But in Truck Insurance Exchange v. Kaiser Gypsum, the U.S. Supreme Court unanimously rejected this judge-made limitation as "conceptually wrong and mak[ing] little practical sense." That ruling also indicates tension between the court's statutory approach and that of lower courts which apply other doctrines to end bankruptcy appeals on prudential grounds with no consideration of the merits.
Truck addressed the scope of the right to participate in bankruptcy proceedings created by Section 1109(b) of the Bankruptcy Code. Truck Insurance Exchange is the liability insurer of the debtor, which faces thousands of asbestos tort claims. Notwithstanding Truck's obligation to pay virtually every dollar of those claims, each lower court had applied the insurance-neutrality doctrine to hold that Truck had no right to be heard. The Supreme Court disagreed. The court recognized that in Section 1109(b), Congress used "capacious" language "to promote greater participation in reorganization proceedings" and conditioned a party's right to be heard only on "whether the reorganization proceedings might affect a prospective party, not how a particular reorganization plan actually affects that party." In holding that insurers like Truck "with financial responsibility for a bankruptcy claim" are "'part[ies] in interest' that can raise objections" because the reorganization can affect their interests in "myriad ways," the court refused to allow prudential considerations unmoored from the Code to trump congressionally enacted language.
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Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
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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.
Transfer Tax Implications on Real Property Leases
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