On September 8, 2008, we posted a commentary on a newly promulgated interim rule relating to “Export-Controlled Items,” that was finalized in 2010 and is now set forth at DFARS Subpart 204.73 and implemented in principal part by the clause set forth at 52.204-7008. Click here. That rule was relatively straightforward, basically reminding DOD contractors (1) that they were obligated to “comply with all applicable laws and regulations regarding export-controlled items” and (2) that those compliance obligations existed independent of the new DFARS rule and its implementing clause. In reality, while the clause had the capacity to transform an export violation into a breach of contract, with all of the attendant liabilities and risks that attend such breaches, it imposed no new substantive obligations on DOD contractors. If DOE has its way, DOE contractors will soon be confronted with far more rigorous export-related obligations. Under a proposed rule published … [Read more...] about Department of Energy (DOE) Proposes Highly Burdensome Reporting Obligations With Respect To Export Compliance
What does bankruptcy mean
As NASA engineers breathe a sigh of relief after the “seven minutes of terror” that was the rover Curiosity’s landing on Mars, recipients of payments under commodity forward contracts can—at least in the Fifth Circuit—rest assured that agreements that meet the basic definition of forward contract contained in section 101(25) of the Bankruptcy Code will be protected from preference liability should their counterparties find themselves in bankruptcy. Last Thursday, in Lightfoot v. MXEnegry Electric, Inc. (In re MBS Management Servs., Inc.). No. 11-30553 (5th Cir. Aug. 2, 2012), the Fifth Circuit Court of Appeals declined a bankruptcy trustee’s invitation to limit “forward contracts” to contracts that specify a particular quantity or date for performance. MBS provided property management services for terrestrial apartment complexes owned by its affiliates. In 2005, MBS agreed to purchase the “full electric … [Read more...] about Curiosity Safe on Mars, Forward Contracts Safe Under Section 546(e) of the Bankruptcy Code
Chapter 15 of the Bankruptcy Code was enacted to give representatives of foreign liquidators recognition in U.S. courts for foreign insolvency proceedings. When a court recognizes a foreign representative and a foreign proceeding, one question that arises is whether the representative can take advantage of avoidance powers like those that are available for domestic bankruptcies—such as avoiding preferential or fraudulent transfers. A foreign representative’s powers, however, are not coextensive with those of a Chapter 7 or Chapter 11 trustee. Chapter 15 expressly excludes the substantive avoidance powers that are usually available under U.S. law and foreign liquidators cannot use such powers without filing a separate Chapter 7 or Chapter 11 case. Notwithstanding that statutory command, a series of court decisions interpreting Chapter 15 has given representatives of foreign liquidations options to invoke avoidance powers under foreign law. This … [Read more...] about What Avoidance Powers Are Available Under Chapter 15 of the Bankruptcy Code?
Spotting FakesAt Small Firm Innovation, Washington, D.C., solo Carolyn Elefant notes a New York Times article about researchers at Cornell University who have developed an algorithm to distinguish fake reviews from real ones on websites like TripAdvisor. They ran the algorithm through 400 real hotel reviews and 400 hotels reviews they knew to be fake, and it worked 90 percent of the time.Elefant thinks a “fake-review-detector” like this one would be a boon for lawyer review websites. Lawyers might be more inclined to participate in them, for one thing. “A detector wouldn’t eliminate accurate critiques, but prevent lawyers from being hurt by fakes,” Elefant wrote.A solid review-detector might also ease concerns that some state bar associations have about client testimonials in advertising. “A review detector allows for a more narrowly tailored solution: state bars could require lawyers to register their websites and subject them to the fraud detector … [Read more...] about Around the Blawgosphere: Pruning Phony Web Client Reviews; What Does It Mean to Be a Virtual Lawyer?
Hulk Hogan from his lawsuit over clips of a sex tape that Gawker posted online. Owner Nick Denton told Gawker employees that he will continue to fight the verdict through the appeals process, according to Recode.net.Bankruptcy does not mean that Gawker is going out of business. By filing Chapter 11, a debtor company (in this case Gawker) continues to operate under court supervision, after submitting a plan to reorganize. This means that they will continue business with a duty to operate in the best interest of its creditors (in this case Hogan and others), while figuring out how to pay creditors over time. If the court feels their management is not effective or honest, they can appoint a trustee to take over, although according to the U.S. Courts website, this is rare.The bankruptcy code states that once a company has Chapter 11 status, there is a stay against “the enforcement … of a judgment obtained before the commencement of the case under this … [Read more...] about Don’t Worry Gawker Fans, Site Won’t Shut Down Even Through Bankruptcy