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New Cases For the Week of June 1, 2009 - June 5, 2009
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Click here to search prior New Opinion summaries.
| June 5, 2009 |
Case |
Court |
Holding |
In re Baird
(DBN Subscription Required) |
10th Cir. |
The right of a debtor/insured under an insurance policy to consent to any settlement by the insurance company of a claim against the policy is a right which the bankruptcy trustee can sell and assign (here, to the injured creditor). |
Gredd v. Bear Stearns Securities Corp.
(DBN Subscription Required) |
2nd Cir. |
A broker was a defendant in a fraudulent transfer lawsuit brought by a bankruptcy trustee whose debtor was a Ponzi scheme. The broker asserted, among other things, that it was a good faith transferee. The district court did not err in refusing to instruct the jury: (i) that good faith must be evaluated transfer-by-transfer or (ii) that the defendant could not rely on third party diligence in establishing its good faith. |
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| June 4, 2009 |
Case |
Court |
Holding |
In re Empire Equities Capital Corp.
(DBN Subscription Required) |
Bankr. SDNY |
To assume an executory contract, a debtor must cure monetary and non-monetary defaults, unless the contract is an unexpired real property lease (in which case non-monetary default cures are not required). Thus where an option contract expired by its own terms post-petition, assumption was literally impossible, since the debtor could not cure its failure to act within the option time period.
Section 108(b) however, does operate to extend the period to exercise the option by 60 days. |
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