Judge Lifland

In re Daewoo Logistics Corp.

After the court granted an order recognizing a foreign proceeding for rehabilitation under the Republic of Korea's (ROK's) Debtor Rehabilitation and Bankruptcy Act pursuant to chapter 15, the debtor filed a motion for an order declaring that a creditor must release funds and finding that the creditor was in contempt of the Recognition Order when it obtained a state court order issuing a warrant to seize the debtor's vessel.
Ruling: 
Recognition of foreign main proceeding did not preclude action against debtor's assets in the U.S. after stay in foreign proceeding expired.
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Commercial case opionion summary, case decided on October 05,2011, LexisNexis #1111-041

In re Daewoo Logistics Corp.

A debtor in foreign rehabilitation proceedings obtained recognition of the foreign proceeding by a bankruptcy court, and the recognition order expressly granted protection under bankruptcy stays. The debtor moved for an order directing a creditor to release funds posted by the debtor to secure the release of a vessel arrested by the creditor after the foreign proceeding terminated.
Ruling: 
Arrest of foreign debtor's vessel not precluded once foreign proceeding closed.
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Commercial case opionion summary, case decided on October 05,2011, LexisNexis #1111-099

Picard v. Madoff (In re Bernard L. Madoff Inv. Sec. LLC)

Plaintiff trustee filed an adversary proceeding against defendants, the brother, sons, and niece of a person who was convicted of operating a Ponzi scheme, seeking an order under 11 U.S.C.S. §§ 544, 547, 548, 550, and 551 and New York law which allowed him to recover more than $198 million which he claimed defendants received from a securities business that was operated as Ponzi scheme. Defendants filed motions to dismiss.
Ruling: 
Trustee stated valid claims against brother, sons and niece of Ponzi scheme operator for recovery of transfers.
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Commercial case opionion summary, case decided on September 22,2011, LexisNexis #1011-095

Fairfield Sentry Ltd. V. Theodore GGC Amsterdam (In re Fairfield Sentry Ltd.)

Plaintiffs, foreign representatives of debtors in foreign insolvency proceedings, brought a multitude of actions in state court against defendant financial entities seeking to recover amounts paid to the entities based on the debtors' participation in a fraudulent investment scheme. The actions were removed to the bankruptcy court, and certain entities moved for remand or abstention with regard to certain of the actions.
Ruling: 
Claims by foreign representatives of debtors in foreign insolvency proceedings were properly removed to bankruptcy court.
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Commercial case opionion summary, case decided on May 23,2011, LexisNexis #0611-136

In re Fairfield Sentry Ltd.

Foreign representatives of three debtors that sought bankruptcy protection in the Commercial Division of the High Court of Justice, British Virgin Islands (the "BVI Court") filed motions seeking an order under 11 U.S.C.S. §§ 103(a), 105(a), 1507(a) and 1521(a)(7) which granted relief under 11 U.S.C.S. § 108. Entities that were named as defendants in adversary proceedings the foreign representatives filed opposed the motion.
Ruling: 
Tolling of time limit for filing adversary proceeding granted to foreign representative of debtors who helped non-U.S. persons invest in the Madoff Ponzi scheme.
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Commercial case opionion summary, case decided on May 23,2011, LexisNexis #0611-036

Securities Investment Prot. Corp. v. Bernard L. Madoff Inv. Secs. LLC

A trustee for the consolidated liquidation of an entity under the Securities Investor Protection Act, 15 U.S.C.S. § 78aaa et seq., and for the estate of an individual filed complaints and related documents under seal or redacted. Defendants set forth grounds for maintaining the redactions in the publicly filed complaints.
Ruling: 
Identifying information of subsequent transferees of debtor Ponzi scheme operator ordered unsealed.
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Commercial case opionion summary, case decided on April 12,2011, LexisNexis #0511-038

In re Fairpoint Communs. Inc.

Debtor objected per 11 U.S.C.S. § 502(b)(7) to a $1 million proof of unsecured claim filed by counsel for a former employee who charged that debtor was liable for damages based on a wrongful termination that violated the Age Discrimination in Employment Act (ADEA) and RSA ch. 354- A (New Hampshire). A central issue was whether counsel was properly sanctioned per Bankr. S.D.N.Y. R. 9006-1 for having filed an out of-time response to the objection.
Ruling: 
Age Discrimination in Employment Act claim was subject to cap on damages resulting from claim for termination of employment contract.
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Commercial case opionion summary, case decided on March 17,2011, LexisNexis #0411-044

Picard v. Estate of Chais (In re Bernard L. Madoff Inv. Sec. LLC)

Defendants moved to partially dismiss the complaint of the trustee for the substantively consolidated liquidation of a securities firm and its principal under the Securities Investor Protection Act (SIPA), 15 U.S.C.S. 78aaa et seq. The complaint was filed pursuant to, inter alia, 15 U.S.C.S. § 78fff(b) and § 78fff-2(c)(3), 11 U.S.C.S. §§ 105(a), 502(d), 542, 544, 547, 548(a), 550(a), and 551, and N.Y. Debt. & Cred. Law § 270 et seq. (2010).
Ruling: 
Proceeding for immediate turnover of funds transferred pursuant to debtor's Ponzi scheme dismissed.
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Commercial case opionion summary, case decided on February 24,2011, LexisNexis #0311-086

Securities Investor Protection Corp. v. Bernard L. Madoff Inv. Secs. LLC

Plaintiff, the trustee for the Securities Investor Protection Act, 15 U.S.C.S. § 78aaa et seq., liquidation of an investment firm, sought an order pursuant to 11 U.S.C.S. § 105(a) and § 362(a) and Fed. R. Bankr. P. 7065 enforcing the automatic stay and declaring certain actions by third party plaintiffs against defendants void ab initio as against defendants, and enjoining the third party plaintiffs from litigating third party actions.
Ruling: 
Order granted enforcing stay and voiding third party actions against defendants in avoidance proceedings based on debtor's Ponzi scheme.
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Commercial case opionion summary, case decided on February 09,2011, LexisNexis #0311-002

Bernard L. Madoff Inv. Secs. LLC v. Merkin (In re Bernard L. Madoff Inv. Secs. LLC)

Defendants filed motions to dismiss a complaint filed by plaintiff trustee pursuant to 15 U.S.C.S. § 78fff(b) and § 78fff-2(c)(3) (SIPA), 11 U.S.C.S. §§ 105(a), 502(d), 542, 544, 547, 548(a), 550(a), 551, various sections of New York Debtor and Creditor Law (NYDCL), and other applicable law for turnover, accounting, preferences, fraudulent conveyances, damages, and objections to SIPA claims.
Ruling: 
Safe harbor provision for securities contracts did not apply to bar claims relating to debtor's massive Ponzi scheme.
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Commercial case opionion summary, case decided on November 17,2010, LexisNexis #1210-051

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