The World Imports and SRC Liquidation Opinions Section 503(b)(9) of the Bankruptcy Code[i] allows a creditor an administrative expense claim (i.e., a claim with payment priority over other pre-bankruptcy claims) for the value of goods that the debtor “received” within 20 days before filing for bankruptcy. But what precisely does “received” mean in this…

These Standard Clauses are a representative set of separatenessrequirements that a lender may require in a borrower’sorganizational documents and loan documents. These StandardClauses contain integrated drafting notes with importantexplanations and drafting and negotiating tips.…

The Delaware Supreme Court surprised the mortgage lending community in April with its opinion in J.M. Shrewsbury v. Bank of New York Mellon. In Shrewsbury, the Court held that to foreclose on a mortgage the holder of the mortgage must also be the party entitled to enforce the underlying obligation secured by that mortgage. Stated differently,…

In the second quarter of 2017, the Delaware Superior Court's Complex Commercial Litigation Division issued a number of interesting decisions touching on contractually shortened limitations periods, insurance coverage issues, and contracts involving foreign defendants.

In Motors Liquidation Co. DIP Lenders Trust v. Allianz Insurance Co., C.A. No. N11C-12-022-PRW-CCLD, an insurance coverage suit concerning underlying asbestos claims against General Motors (“GM”), Judge Wallace granted summary judgment in favor of the plaintiff concerning transfer of rights, trigger, and the number of occurrences under the applicable insurance policy. The Court also granted the…

In CNH Industrial Am., LLC v. American Casualty Company of Reading, Pa., C.A. No. N12C-07-108-EMD-CCLD, Judge Davis held that defendant Travelers Indemnity Company (“Travelers”) must indemnify plaintiff CNH Industrial America, LLC (“CNH”) for defense costs in over 200 underlying asbestos-related lawsuits. In prior decisions, the Court determined that, among other things, Wisconsin law applied to the…

In LCT Capital, LLC v. NGL Energy Partners LP, C.A. No. N15C-08-109-WCC-CCLD, Special Discovery Master Kevin F. Brady granted a motion by defendants NGL Energy Partners LP and NGL Energy Holdings LLC’s (collectively, “NGL”) to compel plaintiff LCT Capital, LLC (“LCT”) to supplement responses to interrogatories and revise privilege and redaction logs. In their motion to…

In Bedrock Leasing Corp. v. Lexington Ins. Co., C.A. No. N16C-08-084-EMD-CCLD, Judge Davis granted defendant Lexington Insurance Company’s (“Lexington”) motion to dismiss, and held that the claims asserted by plaintiffs Bedrock Leasing Corporation, WFNY I, LLC, and BulGroup Colorado LLC (collectively, “Bedrock”) were untimely under a suit limitation clause in the parties’ property insurance contract. Bedrock…

In SRL Mondani, LLC v. Modani Spa Resort, Ltd., C.A. No. N16C-04-010-EMD-CCLD, Judge Davis denied the defendants’ motion to dismiss the plaintiffs’ complaint, holding that a forum selection clause in one of the parties’ contracts did not supersede the Delaware forum selection clauses in the two agreements under which the dispute arose. Judge Davis additionally rejected…

In Sonos Inc. v. D&M Holdings, Inc., C.A. No. 14-1330-RGA (D. Del. June 2, 2017) (the “14-1330 Case”), and related case D&M Holdings, Inc., et al. v. Sonos Inc., C.A. No. 16-141-RGA (D. Del. June 2, 2017) (the “16-141 Case”), Judge Andrews issued an amended discovery order requiring plaintiff Sonos, Inc. (“Sonos”) to produce materials from…