Appeals, Bankruptcy Code, Fiduciary Duty

The Ultra Vires Exception to the Barton Doctrine is Very Narrow

Ervin Cohen & Jessup LLP on 2/13/2025

Q: I am a state court receiver in a case that has been disrupted by a bankruptcy filing. The bankruptcy trustee has been threatening to sue me, in the bankruptcy court, for what she claims were negligent actions and to...more

The Barton Doctrine: Suit Against Receiver Did Not Require Court Permission

Patterson Belknap Webb & Tyler LLP on 1/29/2025

The Barton doctrine provides that a court-appointed receiver cannot be sued absent “leave of court by which he was appointed.” Barton v. Barbour, 104 U.S. 126, 127 (1881). “An action against a receiver without court...more

Del. Bankruptcy Rulings Instruct on Creditors' Rights to Sue

Proskauer Rose LLP on 9/30/2022

Creditors of distressed businesses are often frustrated by shareholder- controlled boards when directors pursue strategies that appear to be designed to benefit shareholders at the creditors' expense. In these...more

Another Ruling on Public Auctions Versus Private Sales Under Section 363

Patterson Belknap Webb & Tyler LLP on 5/6/2019

Two weeks ago, we discussed asset sales under Bankruptcy Code section 363. As that post noted, section 363 requires court approval for asset sales outside the ordinary course of business, with courts ensuring that sales...more

Bankruptcy Remoteness Going to a Court of Appeals (Progress Report No. 2)

Patterson Belknap Webb & Tyler LLP on 4/18/2018

Our February 22 post reported that the Franchise Services of North America, Inc. decision of Bankruptcy Judge Edward Ellington of the Southern District of Mississippi dismissing a Chapter 11 petition because a shareholder had...more

Bankruptcy Remoteness Going to a Court of Appeals (Progress Report No. 1)

Patterson Belknap Webb & Tyler LLP on 3/20/2018

Our February 22 post reported that the Franchise Services of North America, Inc. decision of Bankruptcy Judge Edward Ellington of the Southern District of Mississippi dismissing a Chapter 11 petition because a holder of...more

Seventh Circuit Says Violations of Wisconsin’s Theft-by-Contractor Statute Are Not Dischargeable in Bankruptcy

Foley & Lardner LLP on 6/18/2015

The Bankruptcy Code prevents an individual debtor from discharging certain debts, including, upon request of the creditor, debts for “fraud or defalcation while acting in a fiduciary capacity.” 11 U.S.C. § 523(a)(4). The...more

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