Here’s a scenario frequently seen in Chapter 11 cases. A tenant files bankruptcy and rejects a commercial real estate lease. The landlord files an unsecured lease rejection claim seeking to recover the lost future rent under the rejected lease. The claim amount is capped by Bankruptcy Code Section 502(b)(6) but may still be one of the
proof of claim
New Article Tackles Whether Unsecured Creditors Should Be Able To Recover Post-Petition Attorney’s Fees, The Question Left Open By The Travelers Decision
By Bob Eisenbach on
Posted in Business Bankruptcy Issues, Recent Developments
When the U.S. Supreme Court overruled the Ninth Circuit’s so-called Fobian rule in the Travelers Casualty & Surety Co. of America v. Pacific Gas & Electric Co. decision (available here) in March 2007, it left for another day the question of whether unsecured creditors could recover, as part of their unsecured claims, post-petition attorney’s…
The Bull Rips A Hole In The Matador’s Cape: New Ninth Circuit Decision Limits Reach Of Section 502(b)(6)’s Landlord Cap
A commercial real estate lease often represents the largest single liability of many debtors. For retailers, which typically have scores or even hundreds of store leases, the liability involved is orders of magnitude larger. It’s fair to say that the management of lease obligations can be of enormous consequence to debtors, landlords, and other creditors in…
Florida Bankruptcy Court Considers The Supreme Court’s Travelers Decision And Refuses To Allow Post-Petition Attorney’s Fees To An Unsecured Creditor
By Bob Eisenbach on
Posted in Business Bankruptcy Issues, Recent Developments
In March 2007, the U.S. Supreme Court overruled the so-called Fobian rule in the Travelers Casualty & Surety Co. of America v. Pacific Gas & Electric Co. decision. (Click here for a copy of the decision.) That rule, named for the decision by the United States Court of Appeals for the Ninth Circuit in a…
California Bankruptcy Court Answers Open Question From Supreme Court’s Travelers Decision: Can Post-Petition Attorney’s Fees Be Added To Unsecured Claims?
By Bob Eisenbach on
Posted in Business Bankruptcy Issues, Recent Developments
In March, the U.S. Supreme Court overruled the so-called Fobian rule in the Travelers Casualty & Surety Co. of America v. Pacific Gas & Electric Co. decision. (Click here for a copy of the decision.) That rule, named for decision by the United States Court of Appeals for the Ninth Circuit in a case…
Proof Of Claim And Other Bankruptcy Forms Revised To Reflect April 1, 2007 Dollar Amount Adjustments
By Bob Eisenbach on
Posted in Business Bankruptcy Issues, Recent Developments
As reported in this post last month, certain dollar amounts in the Bankruptcy Code were increased effective April 1, 2007. The dollar amount changes meant that some of the official bankruptcy forms, most notably the proof of claim form and the voluntary petition, had to be revised as well.
After I put…
The U.S. Supreme Court Rejects The Fobian Rule Barring Unsecured Creditors From Recovering Attorney’s Fees In Bankruptcy Cases
By Bob Eisenbach on
Posted in Business Bankruptcy Issues
Attorney’s Fees And Unsecured Claims. For more than 15 years, creditors in the Ninth Circuit who sought to include in unsecured claims amounts for attorney’s fees incurred post-petition litigating bankruptcy issues have had that portion of their claims disallowed. The reason? A decision by the United States Court of Appeals for the Ninth Circuit in…
Bankruptcy Notices: New Rule Lets Creditors Choose A Preferred Address
By Bob Eisenbach on
Posted in Business Bankruptcy Issues, Recent Developments
You’re a creditor in a bankruptcy case and a bankruptcy notice arrives on your desk setting a deadline to object to an important motion. The address on the notice is a P.O. box located a thousand miles away, one used only for customer payments and not for legal notices. As a result, the notice took a long…
Objections To Bankruptcy Claims: Ignore Them At Your Peril
By Bob Eisenbach on
Posted in Business Bankruptcy Issues
If you’re a creditor in a bankruptcy case and diligently file a proof of claim on time, often months or even years may go by before you hear anything further about your claim from the debtor, bankruptcy trustee, or any other party. In fact, the only thing you may hear about your claim for a long time…
Selling A Bankruptcy Claim: Opportunity And Risk
By Bob Eisenbach on
Posted in Business Bankruptcy Issues
At one time or another just about every creditor in a large corporate Chapter 11 bankruptcy case will receive an offer to purchase the creditor’s claim. These offers typically come from professional claims traders, most of which are in the business of buying claims at a discount to what they believe will be the claims’ ultimate…