BANKRUPTCY LAW CASES

• In re: Triple S Restaurants, Inc.
• Maxwell v. KPMG, LLP

U.S. 6th Circuit Court of Appeals, March 17, 2008
In re: Triple S Restaurants, Inc., No. 07-5452
In a tort action removed to bankruptcy proceedings, dismissal of debtor's general counsel's claim against bankruptcy trustee for intentional infliction of emotional distress, as well as imposition of sanctions on general counsel, are affirmed where: 1) because certain negotiations were within the context of recovering assets for the bankruptcy estate, there was no clear error in a finding that defendant acted within the scope of his authority as trustee when he stated he would refer a particular matter for criminal investigation if plaintiff would not agree to the settlement; 2) the claim of intentional infliction of emotional distress and outrage was properly dismissed; and 3) there was no abuse of discretion in imposing sanctions. Read more...

U.S. 7th Circuit Court of Appeals, March 21, 2008
Maxwell v. KPMG, LLP, No. 07-2819
In a suit brought by a Chapter 7 bankruptcy trustee alleging that the bankrupt company was harmed by an accounting firm's breach of its duty of care, summary judgment for defendant is affirmed where: 1) even assuming that defendant was negligent in its statement of the company's earnings, that statement was not the cause of an ill-fated business decision entered into by the company; and 2) the evidence presented did not support the claim for damages. Defendant is authorized to seek attorney's fees in the district court. Read more...