FLP’s residential home builder client prevails in bankruptcy trial, discharging $20 million of unsecured debt
A subcontractor sued FLP’s client, an individual home builder, for
fraud and misrepresentation in state court which caused the home builder
to file bankruptcy. The subcontractor then filed an adversary action in
the bankruptcy court to deny the home builder’s discharge based
on alleged false and misleading statements made in connection with the
bankruptcy. FLP’s Alan Forsley defended the home builder in the
ensuing bankruptcy court trial. After 11 years of litigation in the state
court and bankruptcy court, the bankruptcy court entered judgment in favor
of the home builder.
FLP’s actions allow receiver to recover $1.1 million after appeal to 9th Circuit Court of Appeals
Representing the receiver in a shareholder dispute, the receiver recovered
$1.1 million after prevailing on appeal to the 9th Circuit Bankruptcy Appellate Panel and obtaining dismissal of appellant’s
subsequent appeal to the 9th Circuit Court of Appeals.
In re MBE Digital, 9th Cir. BAP Case No. CC-16-1121 and 9th Cir. Court of Appeals Case No. 16-60093.
Debtor’s Reorganization Plan Confirmed Over Creditor Objection
On behalf of a judgment-debtor law firm in disputes with multiple creditors,
FLP filed a Chapter 11 bankruptcy petition after the largest creditor
obtained an assignment order against the law firm’s receivables
which, if executed, would have caused the law firm to shut down. The bankruptcy
afforded the client the time it needed to reorganize its affairs, resolve
disputed claims, pay certain creditors over 60 months, and most importantly,
to stay in business.
Bankruptcy Court Discharged the Debt
Prior to our representation, a purchaser of a dental practice (“Purchaser”)
won an arbitration award worth over $500,000 against the selling dentist
(“Seller”). The arbitrator stated the Seller made material
misrepresentations regarding the sale. The Seller filed bankruptcy and
the Purchaser filed an adversary matter to prevent discharge of the award.
The Seller retained our firm to represent him. We defended the Seller
at trial. Notwithstanding that the arbitrator held the Seller made material
misrepresentations, the bankruptcy court discharged the debt after it
found that the Purchaser did not justifiably rely on the misrepresentations
and that there was no evidence of intent to deceive.
Mediation Results in Settlement Discharging of 90% Student Loan Debt
September 2017. FLP successfully negotiated a compromise on behalf of an
individual Chapter 7 client seeking to discharge over $110,000 of student
loan debt. Based on the client’s age and after documenting his medical
issues and work limitations, we reached a settlement that allowed the
client to avoid the expense and uncertainty of trial. Result: 90% reduction
in principal payable over 5 years with no interest.
Entered Judgment in Favor of Debtor Defendants
Represented debtor defendants in causes of action under 11 U.S.C. §§
523(a)(4 & (a)(6), and 727(a)(2)(A) and (a)(3). After a two day trial,
the Court held the plaintiff failed to prove his claims by a preponderance
of evidence and entered judgment in favor of debtor defendants.
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