CARES Act Expands Relief for Small Businesses
Long before COVID-19 (Coronavirus) was even known to most Americans, Congress acted to address a recognized deficiency in the Bankruptcy Code. The expansive provisions for business reorganization under Chapter 11 were too cumbersome, expensive and complex for many smaller businesses, while the options for “mom and pop” enterprises under Chapter 13 were too limited. To […]
COVID-19 Guidance for Commercial Landlords
The impact of COVID-19 continues to be felt throughout the economy, with a collapse of demand in basically every consumer-facing industry, including restaurants, hotels, airlines, gas stations, and non-grocery retail stores. These problems flow through the economic food chain, with storefronts unable to pay landlords, who in turn have trouble paying their lenders. They may […]
Court of Appeals Answers FAQ Concerning Auto Repossession and Bankruptcy
A familiar circumstance in consumer bankruptcies is that a borrower becomes delinquent on an automobile loan and fails to address the situation – until the automobile is repossessed. The consumer then seeks bankruptcy representation, and then seeks (usually through counsel) the return of the vehicle.
District Court Upholds Administrative Pledge Policy of Bank in Bankruptcy Case
A recent decision from the United States District Court for the Southern District of New York upheld the “Administrative Pledge Policy” of Wells Fargo Bank N.A. This decision echoed earlier court decisions, including from the 9th Circuit Court of Appeals, and the 1995 U.S. Supreme Court decision in Citizens Bank of Maryland v. Strumpf. It […]
FLB Secures Dismissal of De Facto Taking Claim Against the City of Allentown
The owners of Plaza at 835 West Hamilton Street brought an eminent domain proceeding against the City of Allentown, arguing that the City caused them to lose a major tenant and default on their mortgage. As a consequence, the building owner claimed that they suffered a “taking” of their property for which they sought “just […]
FLB Obtains Favorable Ruling as N.J. Court Denies Injunction
St. Luke’s Warren Hospital awarded exclusive contracts to two separate groups for the provision of general surgery and orthopedic surgery at its facility and closed its Department of Surgery and Department of Orthopedics to physicians outside of these groups. Eight physicians and Coordinated Health challenged the decision in Court and requested that an injunction be […]
FLB Prevails for City of Allentown in $5 Million Arbitration
Shareholders Douglas J. Smillie and Maraleen D. Shields recently won an arbitration on behalf of the City of Allentown in a dispute brought by Lehigh County Authority (“LCA”) and several suburban sewer authorities (Coplay-Whitehall Sewer Authority, Salisbury Township, South Whitehall and South Whitehall Township Authority and Lower Macungie Township), claiming that the City intentionally over-charged […]
Corporations Registering To Do Business In Pennsylvania Consent To Being Sued In Pennsylvania
On September 25, 2018, the Pennsylvania Superior Court in Murray v. American LaFrance, — A.3d —, 2018 Pa. Super. 267 held that foreign corporations registered to conduct business in the state automatically consent to being sued in Pennsylvania’s courts. This decision, along with the Court’s decision in Webb-Benjamin, LLC v. International Rug Group, LLC, — […]
Court Holds Non-Collusive Sheriff’s Sale Not a Preferential Transfer
In an Opinion dated July 19, 2018, the Third Circuit Court of Appeals held that a transfer of property pursuant to a non-collusive sheriff’s sale is not a preferential transfer under Section 547 of the Bankruptcy Code.
Firm Assists Newspaper in Obtaining Access to School Bus Video
Pursuant to Pennsylvania’s Right to Know Law, a regional newspaper sought to obtain a copy of a video recording of an incident involving a student and a teacher that occurred on a school bus. The school district opposed the request. The Office of Open Records (OOR) concluded that the video was a public record to […]