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Vol 12, Num 7 l November 2016

Technology and Intellectual Property

► In This Issue:

Bankruptcy Court Permits Pre-Petition Payment in Full In Order To Moot Sole Plan Objection And Permit Confirmation Of Chapter 11 Plan


Daniel M. Anderson
Ice Miller LLP
Columbus, Ohio

In a recent decision, the U.S. Bankruptcy Court for the Eastern District of Michigan held that a chapter 11 debtor may pay an unsecured claim in full prior to confirmation in order to moot the creditor’s objection to the debtor’s plan of reorganization and allow confirmation of the plan.

In In re RnD Engineering LLC, there were two chapter 11 debtors: Richalin Digue, an individual, and RnD Engineering, LLC, a limited liability company controlled by Digue. Digue had been employed for many years by Nagel Precision, Inc., the major creditor in the case, before leaving to form his own firm. Afterwards, Nagel filed suit in state court for misappropriation of trade secrets and related torts. The debtors filed chapter 11 cases on the eve of trial in the state court action, and the state court claims were refiled in an adversary proceeding commenced in the bankruptcy court by Nagel.

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Old Fraud in New Forms: Lawyers and Clients Beware


Robert M. Charles, Jr.
Lewis Roca Rothgerber
Christie LLP
Tucson, Ariz.


A string of recent email and media account scams remind us that fraudsters are constantly looking for gullible victims, whether lawyers or clients, to scam in seemingly legitimate schemes. Folks in financial distress are excellent targets. Here are several examples to watch for and to caution clients against.

Client in Distress

My first employer, a federal judge, related to me the story of law firms in the early 1960s, which were all mostly open on Saturday mornings. As the scheme would work, an attractive young woman stopped by without an appointment. She had a local business’s check payable to her personally. She wanted desperately to retain the firm and pay a large retainer, but banks were not open on Saturdays, so she could not cash the check and pay the firm.
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Bankruptcy Trustees Borrow Longer Look-Back Provisions Meant for Governmental Creditors


Patrick S. Scott
GrayRobinson, P.A.
Fort Lauderdale, Fla.

It’s widely known that avoidance actions to claw back fraudulent transfers can be filed after the typical four-year limitations period has expired under most states’ versions of the Uniform Fraudulent Transfers Act (or the new Uniform Voidable Transactions Act) by invoking the “discovery rule” in those statutes. Under the discovery rule, the limitations period may be tolled where the transfer was made with the debtor’s intent to defraud creditors and the transfer (or in many states, its wrongful character) was not reasonably discoverable 12 months before the bankruptcy petition was filed. But what can the trustee do when both the four-year and the 12-months-from-discovery periods have expired pre-petition?
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