April 04, 2018 | Delaware Business Court Insider
Chancery Addresses Subrogation Rights in the Context of Claims for IndemnificationIn Meyers v. Quiz-Dia, Vice Chancellor J. Travis Laster addressed the question of whether a party that paid the legal fees and expenses of persons entitled to indemnification could be subrogated to their rights to recover losses incurred in defending against claims filed against them.
By Barry M. Klayman and Mark E. Felger
7 minute read
March 07, 2018 | Delaware Business Court Insider
Financial Distress Is a Prerequisite to Good-Faith Bankruptcy FilingIn In re Rent-A-Wreck of America, Bankruptcy Judge Laurie Silverstein dismissed voluntarily filed bankruptcy cases on the grounds they were not filed in good faith.
By Barry M. Klayman and Mark E. Felger
7 minute read
February 14, 2018 | Delaware Business Court Insider
Stockholders Agreement Interpreted to Not Run Afoul of DGCLVice Chancellor J. Travis Laster held that a provision in a stockholders agreement that purported to limit the board's authority to select the company's chief executive officer was ineffective because it conflicted with the Delaware General Corporation Law.
By Barry M. Klayman and Mark E. Felger
6 minute read
January 17, 2018 | Delaware Business Court Insider
Bankruptcy Judge Applies Anti-Forfeiture Statute to Save Debtor's Exercise of Option to Renew LeaseIn a recent decision, Bankruptcy Judge Christopher S. Sontchi addressed the question of whether a Chapter 11 debtor, the tenant under a commercial lease, could exercise an option to renew the lease during the bankruptcy proceedings, even though the debtor was in default under the lease and the lease specified that it could not be renewed if defaults existed at the time the option was exercised.
By Barry M. Klayman and Mark E. Felger
7 minute read
December 06, 2017 | Delaware Business Court Insider
Receiver's Disallowance of Creditor's Claim Subject to De Novo ReviewWhat should be the standard of review when the Court of Chancery considers an appeal from a receiver's disallowance of a claim pursuant to section 296(b) of the Delaware General Corporation Law? In B.E. Capital Management Fund LP v. Fund.com Inc., C.A. No. 12843-VCL (Del. Ch. Oct. 4, 2017), Vice Chancellor Laster held that a receiver's determination is subject to de novo review and the court has discretion to go beyond the record presented to the receiver by conducting an evidentiary hearing.
By Barry M. Klayman and Mark E. Felger
13 minute read
November 08, 2017 | Delaware Business Court Insider
Bankruptcy Court Affirms Authority to Approve Nonconsensual Third-Party ReleasesIn a significant decision in a closely watched case, Bankruptcy Judge Laurie Selber Silverstein held in In re Millennium Lab Holdings II, Case No. 15-12284 (LSS) (Del. Bankr. Oct. 3, 2017), that the bankruptcy court had constitutional adjudicatory authority to approve the nonconsensual release of nondebtor, direct nonbankruptcy common law claims against third parties as part of a confirmation order.
By Barry M. Klayman and Mark E. Felger
7 minute read
October 11, 2017 | Delaware Business Court Insider
Corporation Is Not Precluded From Contradicting Its Own 30(b)(6) WitnessCan a party be precluded from offering evidence that contradicts or seeks to expand the testimony of its designated Rule 30(b)(6) witness? When a party notices the deposition of an organization under Rule 30(b)(6), the organization has an obligation to ensure, through the testimony of one or more witnesses, that the party taking the deposition receives complete responses, based on the organization's full knowledge and any relevant material available to it.
By Barry M. Klayman and Mark E. Felger
12 minute read
September 07, 2017 | Delaware Business Court Insider
Bankruptcy Court Predicts Del. Will Recognize Existence of De Facto LLCsIn a case characterized as a "matter of great local interest," Bankruptcy Judge Kevin Gross determined a question of much wider interest to practitioners: whether a contract was void ab initio because the Delaware limited liability company that executed it had not yet been formed.
By Barry M. Klayman and Mark E. Felger
5 minute read
August 09, 2017 | Delaware Business Court Insider
Drop Shipped Goods Failed to Qualify for Administrative Expense Priority in BankruptcyIn order for a creditor who supplies goods to a debtor within 20 days before the bankruptcy petition is filed to recover the value of the goods as a priority administrative expense under Section 503(b)(9) of the Bankruptcy Code, the debtor must have had physical possession of the goods and not merely constructive receipt.
By Barry M. Klayman and Mark E. Felger
6 minute read
July 05, 2017 | Delaware Business Court Insider
Standing in Foreclosure Actions Requires Holding Both Mortgage and NoteA divided Delaware Supreme Court recently held that a mortgage assignee must be entitled to enforce the underlying obligation that the mortgage secures in order to foreclose on the mortgage.
By Barry M. Klayman and Mark E. Felger
7 minute read
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