Tuesday, January 3, 2012
NACBA Members of the Month
I just went to pay my NACBA dues online and discovered that our own Peter
Lively is the NACBA member of the month this month and our own Erik Clark
was so designated three months ago. So we can say that on average in the
recent past a cdcbaa member has been member of the month 50% of the time.
I thought it was important to let everyone know that many of us in cdcbaa
are proud of our members.
Patrick T. Green
Thursday, December 29, 2011
Madoff Son Must Face Suit in Bankruptcy Court
"Bernard Madoff’s son Andrew must submit to a bankruptcy judge’s decision to permit a $198 million lawsuit to go forward because he sought that court’s protection when he filed a claim against his father’s estate, a federal judge said.
U.S. District Judge William Pauley in Manhattan last week declined to hear an appeal of the September decision in favor of Irving Picard, the trustee liquidating Bernard L. Madoff Investment Securities LLC, in his claim against Madoff family members including Andrew Madoff and the estate of Mark Madoff, who committed suicide in December 2010. Pauley’s written opinion was filed today in U.S. Bankruptcy Court in Manhattan.
'Because Mark and Andrew invoked the aid of the bankruptcy court by offering a proof of claim and demanding its allowance, they must abide by the consequences of that procedure,' Pauley said in his Dec. 22 decision, citing a U.S. Supreme Court ruling that also described limits to the power of bankruptcy judges."
Wednesday, December 28, 2011
Temporary Payroll Tax Cut Continuation Act of 2011
On December 23, 2011, President Obama signed into law HR 3765, the Temporary Payroll Tax Cut Continuation Act of 2011, extending the current 4.2% Social Security Old-Age, Survivors, and Disability Insurance (OASDI) tax rate for employees to wages paid between January 1, 2012 and February 29, 2012. Please be aware of the following:
- Effective immediately, any payrolls processed with a check date between January 1, 2012 and February 29, 2012 will reflect the employee Social Security rate of 4.2% with a wage limit of $110,100.00.
- For 2012 payrolls processed prior to December 27, 2011, Social Security tax was withheld from your employees at the rate of 6.2%. Your employees will automatically receive a credit for any overpayment of Social Security tax with their first 2012 pay check processed on or after December 27, 2011.
The reduced tax rate may be extended through 2012. Congress and the White House intend to pursue further legislation to extend the reduced 4.2% OASDI tax rate through 2012. Employers will continue to pay Social Security tax of 6.2% up to the taxable wage limit for each worker ($110,100 for 2012), as well as the 1.45% Medicare tax, with no limit.
Three New Bankruptcy Judges
Three California federal bankruptcy judges set to retire are being replaced
by an attorney from Pillsbury Winthrop Shaw Pittman LLP, a partner from
Friedman Dumas & Springwater LLP, and a solo practitioner. The announcement
was made by the chief judge of the Ninth Circuit on Tuesday.
U.S. Bankruptcy Judge Ellen Carroll will be replaced by Pillsbury Winthrop
counsel Mark D. Houle, who will be sworn into the position on February 17
at the office of the Central District of California.
“Mr. Houle is an experienced practitioner who comes to the bench with a
thorough understanding of bankruptcy court operations,” Ninth Circuit Chief
Judge Alex Kozinski said in a statement Tuesday.
Mary E.Hammond, a partner from Friedman Dumas, will be taking over the
position of U.S. Bankruptcy Judge Edward D. Jellen on February 2. The
position is for the Northern District of California.
U.S. Bankruptcy Judge Whitney Rimel will be replaced by Frederick E.
Clement in the Eastern District of California when sworn in on the 16 of
Houle has been employed by Pillsbury Winthrop since 2000, working in the
firm’s insolvency and restructuring group. He represented secured and
unsecured creditors, asset purchasers, and others in various
bankruptcy-related cases at the firm.
Houle worked as an associate at Winthrop Couchot PC before he joined
Pillsbury Winthrop. At the firm of Winthrop Couchot PC, Houle represented
Chapter 11 creditors’ committees, debtors, and Chapter 7 trustees. Prior to
that decision, Houle worked as a clerk for bankruptcy judges in the Central
District of California.
Houle earned a bachelor’s degree from Salem State College in Salem,
Massachusetts. Houle earned his law degree from Boston College Law School.
Houle is also a veteran of the U.S. Air Force and Massachusetts Air
Hammond was hired by Friedman Dumas in 2003 and was made a partner of the
firm in 2008. Hammond’s practice includes commercial and bankruptcy law.
She particularly focuses on business debtors, trustees, and secured and
unsecured creditors. Hammond typically represents Chapter 9 and Chapter 11
debtors. Hammond was an associate at Murphy Sheneman Julian & Rogers, which
is now Winston & Strawn LLP, before she joined Friedman Dumas. She was a
clerk for Judge Jellen from 1998 to 2000 and served as a legal assistant
from 1996 to 1998 for the North Carolina General Assembly. As a legal
assistant, she worked for the Senate president pro tempore and
Appropriations Committee co-chair.
Hammond earned a law degree from the University of North Carolina School of
Law and earned a bachelor’s degree from Duke University.
Clement has been practicing law since 1993 in Redding, California. Clement
earned a bachelor’s degree from Westmont College and a law degree from the
University of California, Hastings College of the Law.
Click below to see original article:
Daniela Romero, Esq.
Tuesday, December 27, 2011
Your Legal Rights Radio Program
Leon Bayer, (aka The Bankruptcy Blogger, http://www.bankruptcyblogger.org/) is a Certified Bankruptcy Specialist by the State Bar of California and will be interviewed live on Public Radio station KALW, San Francisco, Wednesday, January 4, 2012 from 7:30 PM to 8:30 PM on the widely acclaimed legal affairs program, "Your Legal Rights." The radio program is sponsored by the State Bar of California, and hosted by Chuck Finney. The show can be heard live on the Internet, at http://www.kalw.org/
'Basketball Wives' Star Sued for Helping Blow NBA Star's Fortune
"Evelyn Lozada -- one of the stars of 'Basketball Wives' who was once engaged to former NBA All-Star Antoine Walker -- is being sued for allegedly receiving hundreds of thousands of dollars illegally.
The story is shocking. Walker raked in a whopping $110 million during his NBA career, in addition to untold millions in endorsements and other deals ... and he blew ALL OF IT and a lot more.
Walker filed for bankruptcy last year, and now the bankruptcy trustee smells a rat. It seems Walker gave Lozada $560,000 when he already knew he was going belly up. The trustee has sued Lozada, claiming the transfer was fraudulent -- an attempt to hide money from legitimate creditors."
Friday, December 23, 2011
Rapper Young Buck faces losing his trademarked name in bankruptcy case in Nashville
"Multiplatinum rapper Young Buck could lose his name and other assets in a bankruptcy case that the rapper says is frustrating his attempts to sign with a new record label.
Davidson County Bankruptcy Judge George Paine converted the artist’s bankruptcy from Chapter 11 reorganization to Chapter 7 liquidation this week.
The trustee administering his estate has said she plans to sell the trademarked 'Young Buck' name along with other assets. Buck, whose real name is David Darnell Brown, told The Tennessean he was close to signing a recording deal with New Orleans-based Cash Money Records."
Thursday, December 22, 2011
Financial Lawyers Conference
The Annual Seminar of The Financial Lawyers Conference April 20-22, 2012
Ojai Valley Inn & Spa
Bankruptcy After The Fall: Emerging Issues In The Wake Of The Financial Crisis
The bursting of the housing bubble in 2007, the financial panic of September 2008 culminating in the bankruptcy of Lehman and bailout of AIG, and the ensuing and continuing shocks to the global financial system, have created novel stresses on the bankruptcy system. Judges and practitioners in cases such as Lehman, Chrysler, and Madoff, have been required to address and resolve numerous cutting edge issues, often in very pressured environments. Using a series of hypothetical fact patterns created by our moderator, we shall examine these cutting-edge issues and explore their applicability to the more traditional cases handled by the bankruptcy system.
Professor Douglas G. Baird
University of Chicago Law School
Our moderator will be Professor Douglas G. Baird, the Harry A. Bigelow Distinguished Service Professor of Law at the University of Chicago Law School, where his research and teaching interests focus on corporate reorganizations and contracts. Before joining the faculty in 1980, he was a law clerk to Judge Shirley M. Hufstedler and Judge Dorothy W. Nelson, both of the Court of Appeals for the Ninth Circuit. Professor Baird was Dean of the Law School from 1994 to 1999. He has served as Vice Chair of the National Bankruptcy Conference and is Scholar in Residence of the American College of Bankruptcy. He is also a fellow of the American Academy of Arts and Sciences and sits on the Board of Directors of the American Law and Economics Association.
The seminar will be held at
OJAI VALLEY INN & SPA
905 Country Club Road
Ojai, California 93023
A short drive northwest of LA, the luxurious Ojai Valley Inn & Spa offers guests the finest of amenities, including a world-class spa, award-winning cuisine, superb golf and tennis, and scenic horseback rides, as well as art and mind/body classes. The charming shops and galleries of Ojai are a short stroll away. Please see www.ojairesort.com for more information about the resort and to view this beautiful property.
Please direct all questions regarding the 2012 Annual Seminar to:
Christyne Buteyn at firstname.lastname@example.org.
Hostess filing in mix?
"Hostess Brands, America’s biggest bakery, is on the verge of filing for bankruptcy again — perhaps as early as next month, The Post has learned.
Staying out of Chapter 11 is proving tough for the Twinkies maker, a source said, adding the question now is whether it will be a pre-packaged bankruptcy or not."
Wednesday, December 21, 2011
Over Trustee's Objections, Former Howrey Bankruptcy Counsel to be Paid in Full
"In a single declarative sentence, U.S. bankruptcy court judge Dennis Montali captured the essence of what was at issue during a nearly two-hour hearing Wednesday over professional fee applications in the Howrey bankruptcy: 'This is not an ATM machine.'
That observation notwithstanding, the Howrey estate spit out fees in abundance as the sometimes contentious hearing came to a close. Wiley Rein collected one of the largest sums, with Montali approving the full $1.03 million the firm requested for its work as debtor's counsel in the Howrey case from June to October.
By way of background: Howrey entered involuntary Chapter 7 bankruptcy in San Francisco in April, less a month after dissolving. The case was converted to a Chapter 11 proceeding in June; at the urging of the estate's largest creditor, Citibank, it got put in the hands of Chapter 11 trustee Allan Diamond of Diamond McCarthy in October."
Tuesday, December 20, 2011
American Laser Centers files for chapter 11
"American Laser Centers LLC has filed for bankruptcy protection along with its parent, as a weak economy dampened demand for its laser hair removal treatments leading to cash constraints, court documents showed."
Mo. firms seek involuntary bankruptcy for Mamtek
"A Missouri bank has joined with four companies seeking to force a failed artificial sweetener factory in Moberly into an involuntary bankruptcy case."
Monday, December 19, 2011
Round Table wraps up restructuring, emerges from bankruptcy
"Round Table Pizza Inc. said Friday it is expected to emerge from bankruptcy next week.
The company filed for Chapter 11 protection in February with the U.S. Bankruptcy Court in Oakland. Its reorganization plan was approved Dec. 12."
Scottsdale Owners of 54 Arby's File for Chapter 11 Bankruptcy
"The slogan 'It's Good Mood Food' doesn't appear to be case with several Arby's restaurants in Arizona. In fact, the mood's downright depressing.
The Republic reports three related Scottsdale limited-liability companies, all led by Scottsdale businessman Charles Harmon, that operate 54 Arby's fast-food restaurants in Arizona and one in New Mexico, have filed for Chapter 11 bankruptcy protection."
Thursday, December 15, 2011
Wall St. seeks dismissal of Ala. record bankruptcy
"Wall Street creditors asked a judge Thursday to throw out the record bankruptcy filed by Alabama's largest county over more than $4 billion in debt, arguing state law doesn't allow it."
Wednesday, December 14, 2011
Mobile PACER Case Locator Debuts
The most widely used feature of the federal Judiciary’s Public Access to Court Electronic Records (PACER) service has gone mobile.
American Airlines' $30 million London town house
"Buried deep in American Airlines' Chapter 11 bankruptcy filing is a striking asset -- a town house in one of London's most expensive residential streets that property experts say could be worth up to $30 million."
Tuesday, December 13, 2011
Supreme Court Granted Cert. Today in RadLAX Gateway Hotel, LLC vs. Amalgamated Bank
Jon and Roksana,
A note to let you know that the Supreme Court granted cert. today in RadLAX Gateway Hotel, LLC vs. Amalgamated Bank (11-166) rising from the 7th Circuit, containing an important chapter 11 issue: whether a bankruptcy court may confirm a plan of reorganization that proposes to sell substantially all of the debtor’s assets without permitting secured creditors to bid with credit.
The Third and Fifth Circuits hold that creditors are not entitled to credit bid under these circumstances, and the Seventh Circuit held to the contrary. There doesn’t seem to be definitive 9th Circuit case law on this issue.
A group of “Bankruptcy Scholars” presented an amicus brief supporting review of the 7th Cir. decision, arguing that “(1) the appellate courts have extensively considered the question presented; (2) the doctrine of “equitable mootness” impedes the development of deeper splits over legal questions concerning plans of reorganization; (3) an unusually permissive venue statute allows debtors to forum shop, increasing the importance of providing a uniform national construction of the Bankruptcy Code; and (4) the answer to the question presented holds billions of dollars in the balance.”
Here is the 7th Circuit Opinion which will be reviewed:
Regards, Judge Clarkson
UC Irvine Announces Better Clerkship Numbers Than Almost Everyone Else
Thank you to the Hon. Scott Clarkson for the lead on this:
"UC Irvine Announces Better Clerkship Numbers Than Almost Everyone Else" By Christopher Danzing
United States Bankruptcy Court - Central District of California
Santa Ana, CA
Monday, December 12, 2011
New Debate Published in the Texas Law Review
Dear Mr. Hayes:
You may be interested in a new debate published today in the Texas Law Review and its online companion publication, See Also, concerning whether Chapter 13 is merely a "pretend solution" warranting wholesale reform. Professor Katherine Porter takes that position in a new article published in the Texas Law Review, and Chapter 13 Trustee Henry E. Hildebrand, III, and Professor William C. Whitford (Wisconsin). Mr. Hildebrand argues that Professor Porter's position is overstated and can better be explained by the drafting of unrealistic repayment plans, among other things. Professor Whitford's Response agrees with the premise of a fatally flawed system but proposes a near-term solution that would mitigate the effect of local legal culture on Chapter 13 decisions. Their articles can be accessed at http://www.texaslrev.com/issues/vol/90/issue/1/porter (with the Whitford and Hildebrand responses available on the right-hand side of the page).
Today, See Also becomes the first online companion publication of a law review to publish responses with the corresponding print volume. Other responses in this issue of See Also include, among others:
· A review from a leading expert in forensic science concerning a student proposal for state oversight of forensic science laboratories.
· A response from the Co-Reporters of Restatement (Third) of Torts concerning the application of indivisible injury doctrine.
The full issue of See Also is available at http://www.texaslrev.com/seealso?volume=90&issue=1 (right-hand side).
The Texas Law Review, is an independent operation, edited and published entirely by students of the University of Texas School of Law. The Texas Law Review was founded by Professor Leon Green in 1922 and published its first issue that year. The Texas Law Review now publishes seven issues annually and is currently publishing its 90th volume.
Please let me know if you have any questions. We hope that this content is of interest to your readers.
Online Content Editor
Texas Law Review, Vol. 90