Does a Claim Objection Under Section 502(d) Survive the Transfer of the Claim by the Original Claimant?

The Southern District of New York recently reminded us in In re Firestar Diamond, Inc., et al., Case No. 18-10509 (Bankr. S.D.N.Y. April 22, 2019) (SHL) [Dkt. No. 1482] that equitable principles in bankruptcy often do not match those outside of bankruptcy. Indeed, bankruptcy decisions often place emphasis on equality of treatment amongst all creditors […]

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Delaware District Court Denies Interlocutory Appeal on Stern Claims

Introduction Bankruptcy courts are often asked to determine the state law rights of debtors and claimants alike.  However, the Supreme Court in 2011 held that the non-Article III courts (i.e., bankruptcy courts) generally do not hold constitutional authority to enter final judgments on state common law claims, despite being conferred with statutory authority under 11 […]

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Fourth Circuit Distinguishes LLC Membership Interests from Economic Interests in a Security Agreement Conveyance

In Wells Fargo Bank, N.A., f/b/o Jerome Guyant, IRA v. Highland Construction Management Services, L.P. et al., Nos. 18-2450-52 (4th Cir. March 17, 2020), the Fourth Circuit Court of Appeals recently upheld that a borrower’s indirect economic interests in a limited liability company (LLC) were not assigned to a lender under a conveyance in a security […]

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