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New Cases For the Week of April 11, 2011 - April 15, 2011
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| April 13, 2011 |
Case |
Court |
Holding |
Parmalat Capital Finance Limited v. Bank Of America Corporation
(DBN) |
2nd Cir. |
A section 304 proceeding is a "case under Title 11" for purposes of subject matter jurisdiction under section 1334(b). State law litigation by a foreign representative against a foreign debtor's accountants are "related to" a section 304 proceeding for the purpose of removal jurisdiction. The fact that a § 304 proceeding, by definition, involves a bankruptcy estate located abroad does not short circuit the "related to" analysis. In the context of § 1334(b), there is no need to distinguish between estates administered principally in foreign forums and those administered principally in domestic forums. |
In re National Century Financial Enterprises, Inc., Investment Litigation
(DBN) |
SD Ohio |
The claims of a post-confirmation litigation trust against a debtor's agent and financial advisor are barred by the doctrine of in pari delicto. |
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| April 12, 2011 |
Case |
Court |
Holding |
In re Apply 2 Save, Inc.
(DBN) |
Bankr. ID |
The idea of sealing the record utilized by a trustee to support the proper exercise of his discretion in settling causes of action of the estate is incompatible with governing authorities. A trustee — as fiduciary to creditors — is required to explain why he proposes a compromise and the reasons he chooses to exercise his discretion in a particular way. Since one of the major factors pertinent to assessment of the propriety of a settlement is the preferences of creditors, those creditors must be able to fully understand all of the reasons supporting a settlement. Sealing part of the explanation for a settlement thwarts creditors form exercising their important role. Sealing is further inconsistent with a strong policy for open and public records in courts. Although a bankruptcy rule allows sealing to prevent "defamatory" statements, information concerning a defendant's poor financial condition is not "defamatory." Injury or potential injury to reputation will not suffice to deny public access. |
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