Wednesday, May 26, 2021

Self-Insured Retention Poses Problem for Discrimination Plaintiff

 The intersection between bankruptcy and personal injury tort claims can be a difficult one, as shown by a new opinion from Judge Marvin Isgur in Case No. 20-33900, In re Tailored Brands, Inc. (Bankr. S.D. Tex. 5/20/21). The opinion can be found here. The case involves a man who filed an employment discrimination suit against the clothier, but found his claims discharged without any ability to collect from insurance proceeds. The case is a cautionary tale for attorneys dealing with tort claims when a bankruptcy is filed, as large companies increasingly include large self-retention amounts as part of their insurance policies.

Monday, May 17, 2021

NRA Decision Illustrates Vitality of Good Faith Doctrine

When the National Rifle Association filed for bankruptcy in Texas, some pundits speculated that the gun advocates might have been seeking a firearm friendly forum. However, on May 11, 2021, Judge Harlin "Cooter" Hale dismissed the case based on lack of good faith. In re National Rifle Association of America and Sea Girt, LLC, No. 21-30085 (Bankr. N.D. Tex. May 11, 2021). You can find the opinion here. The opinion demonstrates the vitality of the good faith doctrine, which requires debtors’ filings for relief to advance a proper bankruptcy purpose. In the NRA's case, the answer was no.