Tax and Bankruptcy Litigation

Among the divisions of the Law Department, one with particularly broad ranging responsibilities is the Tax and Bankruptcy Litigation Division. Its functions are noteworthy not only for the diversity of issues dealt with but also because they contribute directly and significantly to the city’s revenues and foster private activities that benefit the city’s economy. It is obvious from the division’s title that its attorneys handle tax-related matters and bankruptcy cases. What is not evident (because it is not included in its title) is that an important part of the division’s responsibilities involves eminent domain proceedings brought on behalf of the city or in which the city has an interest. Here I will present an overview of the division’s recent activities in the areas of tax and bankruptcy, reserving for a future article a discussion of noteworthy recent developments in the work of the division on eminent domain.

Bankruptcy Proceedings

The four attorneys who work in the division’s bankruptcy unit protect the city’s interests in bankruptcy proceedings. Most often, the city’s interest is in the payment of delinquent taxes owed by the bankruptcy debtor, requiring the unit’s attorneys to be active in all phases of bankruptcy proceedings by, among other things, opposing motions to expunge claims, objecting to claimed tax exemptions not authorized by federal bankruptcy law and challenging bankruptcy plans which appear to be filed only to avoid the payment of taxes. Bankruptcy proceedings may also involve preserving the city’s interests as a regulatory authority, property owner or landlord, contracting party, franchisor, lessor and licensor. Protecting these interests requires attorneys of the bankruptcy unit to appear in bankruptcy courts throughout the United States.