Category Archives: bankruptcy
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Client Alert for Commercial Landlords: “Control The Space” and Pre-Bankruptcy Contractual Termination of Lease
When the economy weakens, as with the unprecedented effects of the current COVID-19 pandemic, certain office and retail tenants will be unable to satisfy their lease obligations, vacate or file bankruptcy. Landlords should anticipate the consequences of these developments and some may choose to be proactive rather than reactive, and one way is to consider sending notices of default and ... Read More
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SCOTUS Opinion: Denial Of Request For Relief From Automatic Bankruptcy Stay Is A Final, Appealable Order
After Ritzen Group, Inc. sued Jackson Masonry, LLC over a contract, Jackson filed for Chapter 11 bankruptcy, which immediately halted Ritzen’s litigation. Ritzen moved the bankruptcy court for relief from the automatic stay, which was denied. Ritzen then filed a proof of claim, which was eventually disallowed. Ritzen then opted to file a notice of appeal of the bankruptcy court’s ... Read More
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SCOTUS Opinion: Court Sets “No Objectively Reasonable Basis” Standard For Violation Of Bankruptcy Discharge Orders
After Bradley Taggart was civilly sued for violating a business operating agreement, but before the case went to trial, he filed for Chapter 7 bankruptcy and received a discharge. After the discharge was granted, the civil suit recommenced and Taggart lost. The winners sought their attorneys’ fees incurred after Taggart’s petition was filed, which normally were discharged unless Taggart had ... Read More
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Court Upholds Validity of Foreclosure Sale in Light of Debtor’s Failure to Seek a Stay Pending Appeal
A recent decision issued by the Bankruptcy Court for the Eastern District of Virginia underscores the importance for both debtors and creditors to be especially cognizant of procedural rules when dealing with a property subject to foreclosure. In re: Bobbie Upasna Vardan involved a property that had been affected by four bankruptcies filed by the debtor or members of her ... Read More
District Courts Have Original, But Not Exclusive, Jurisdiction Over Bankruptcy Issues
The decision in Houck v. Substitute Trustee Services, Inc. concerned a foreclosure sale that occurred after a bankruptcy petition had been filed and the automatic stay under 11 USC sec. 362(k) was in effect, but the panel opinion by Judge Niemeyer contains several important rulings that all litigators ... Read More
TAGGED: foreclosures, bankruptcy, Fourth Circuit
Mortgage Company’s Indemnification Claim Against Loan Officer Not Discharged In Bankruptcy
When Fidelity First Home Mortgage Company was found liable by a jury under the doctrine of respondeat superior when one of its loan officers engaged in a fraudulent foreclosure rescue scheme, it sued the loan officer seeking indemnification and contribution. The loan officer claimed that Fidelity’s claims were discharged ... Read More