Oil and Gas Royalties Never Become Estate Property in Colorado
The Third Circuit gave royalty owners a constructive trust over royalties improperly paid to secured creditors. The circuit court did not rule on remedy.
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Whether a Fraudulent Transfer Claim Is ‘Direct’ or ‘Derivative’ Depends on Point of View
A D&O policy covering securities claims doesn’t provide coverage for a claim resulting from a fraudulent transfer, the Delaware Supreme Court rules.
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Actual Damages Not Required to Recover Attorneys’ Fees for a Stay Violation
Judge Goldblatt slaps creditors with $665,000 in damages for violating the automatic stay.
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Lawyer Must Disclose a Client’s Misconduct, Even When It’s ‘Uncomfortable’
Lawyers aren’t guarantors for a client’s misconduct, but they may be sanctioned for a coverup.
Judge Goldblatt on the Imputation of Fraudulent Intent to a Delaware Corporation
The fraudulent intent of an individual who controls a corporation can be imputed to the corporation itself, even if the board is unaware of fraud.
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It’s Ok for Lenders to ‘Manufacture’ a Favorable Venue, Delaware Judge Says
A Delaware opinion states that debtors can’t reincorporate to manufacture venue, but it’s permissible for lenders to do so.
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Bankruptcy Judge Hints: Third Circuit Precedent on Public Records May Be Too Broad
Delaware’s Judge Goldblatt seems to be recommending that the Third Circuit close a loophole in confidentiality agreements.
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A Settlement Term Sheet Signed After Mediation Was an Enforceable Contract
The state law standards for creation of a contract governed enforceability of a term sheet signed after mediation.
Successorship Obligations Are Not Barred by Sales Free and Clear, Delaware D.J. Says
Neither a sale ‘free and clear’ nor rejection of a union contract bars enforcement of NLRA successorship obligations, Delaware district judge rules in reversing the bankruptcy court.
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Supreme Court Will Soon Grant or Deny ‘Cert’ to Rule on Refunds for UST Overpayments
The bankruptcy court in Delaware sided with four circuits by directing the U.S. Trustee to give refunds for overpayment of fees that were not uniform throughout the country.
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