Who’s on First? Schafer and Weiner Settle Priority Dispute

June, 2021

John Stockdale Jr. assisted a small investment bank and resolved a complex priority dispute with a factoring company regarding priority over a debtor’s accounts receivable.  A priority dispute arises under the Uniform Commercial Code and involves who has senior rights to collateral securing a debt.  The dispute was favorably resolved in pre-litigation mediation before a former federal bankruptcy judge, who referred to the complex issues as a “Uniform Commercial Code mess.”  Strategic use of pre-litigation mediation to reach a favorable settlement saved the parties substantial time and attorney’s fees and avoided protracted litigation.