Bankruptcy Litigation
Representative cases include:
- Defended automotive tooling manufacturer against $1.2 million “preference payment” suit filed in Delaware bankruptcy case of a large Tier One supplier. Our client had held back tooling deliveries to secure payment of old invoices from the Tier One and was sued to recover a $1.2 million “hostage” payment after the Tier One filed bankruptcy. The firm designed a theory that the $1.2 million was not the Tier One’s property – and therefore was not a preference payment -- because the Tier One was merely a conduit for funds that General Motors provided to secure delivery of the withheld tools. Settled before trial for about 20 cents on the dollar.
- Brought action against Tier One automotive supplier on behalf of a toolmaker. Our client had contracted with a now-bankrupt Tier Two supplier to build tools for the Tier One supplier. Because typical mold builder lien claims against the Tier Two supplier were potentially defective, we pressed a novel agency theory against the Tier One supplier and obtained a cash settlement for about 60 cents on the dollar.