“And it’s too late, baby now, it’s too late,
Though we really did try to make it.”
Carole King, It’s Too Late
Today’s blog is about a recent non-precedential decision from the Third Circuit, In re Winstar Communications, Inc.
The decision is short and simple, and it stands as an important reminder of two important concepts for attorneys to remember:
- The bankruptcy court, and by extension, the district where a bankruptcy is heard, retains exclusive jurisdiction over any matters arising out of a bankruptcy proceeding, even years after the fact.
- Never take a statute of limitations for granted.
IDT Corporation and Winstar Holdings, LLC, purchasers of assets in a Delaware bankruptcy sale and plaintiffs in the original action, asserted that the defendants, Blackstone Advisory Partners L.P., Impala Partners LLC, and Citigroup, Inc., defrauded them in connection with the sale of assets in Winstar Communications’ bankruptcy case. The underlying action included claims on account of fraud, negligent misrepresentation, and civil conspiracy. The action was filed in New York Supreme Court in May 2007, five years after the sale.