Liquidating trust agreement and indemnification Free open sex chat room no registeration
Moreover, although §502(b)(1) makes any defense to a claim available to a bankruptcy trustee unless applicable state law or one of the exceptions in §502(b) applies, “courts must ‘presume’ that the claim ‘will be allowed in bankruptcy unless [it is] expressly disallowed.’” The court reasoned that since the contract was valid as a matter of state substantive law and none of exceptions under §502(b) applied, they would allow Fidelity’s claim.
Next, the court rejected the trustee’s reliance on §506(b), which purportedly only allows interest on a secured creditor’s claim.
Agway later defaulted on payments to insurers and Fidelity made payments under the terms of the deals it had signed with Agway.
Fidelity then demanded indemnification under the agreements and ultimately incurred 4,506.28 in attorneys’ fees in its post-petition action against Agway to recover amounts due to it.
He also argued that no other section of the Code expressly addresses a claimant’s right to recover its recover its attorneys’ fees, other than the one section that allows such a claim for a secured creditor.
In addressing this issue, the court rephrased the issue to determine whether the Code disallows post-petition attorneys’ fees, and if it does so expressly.
There is a critical and often-overlooked question that must be asked at the beginning of every winding up of a trustee company: is the company still a trustee?
The answer to this question dictates the path that must be followed.
According to the agreements, Fidelity was to provide surety bonds to Agway’s insurers under which it was to be indemnified.
Accordingly, allowance of the claim “merely effectuates the bargained-for terms of the loan contract.” As a result of this decision, it is now well settled in the Second Circuit that an unsecured claim may be made for attorneys’ fees accruing post-petition if the debtor had agreed prepetition in an enforceable contract to indemnify the claimant for such fees. is a senior partner and the chair of the Financial Services, Banking and Bankruptcy Department at Ruskin Moscou Faltischek P.
One of the lessons to be learned from this case is that creditors would be well advised to include an unliquidated, contingent claim for attorneys’ fees accruing post-petition when filing a proof of claim against a debtor that has that has indemnified them for attorney’s fees incurred in connection with their contract.
Liquidating a trustee company gives rise to an added layer of complexity in liquidations, with the liquidator obliged to follow not only the statutory regime, but to also comply with the equitable principles of trusts and potentially the trust deed itself.
Trustee companies are the ‘square peg’ in the round hole of the .