Business Reorganization and Bankruptcy Subpractice Group
214-210-2929
facebook
linkedin
rss
twitter
youtube
google_plus
email
  • Home
    • Bankruptcy Group Home
    • Firm Home (Other Practice Groups)
  • Attorneys
  • Offices
    • Dallas
    • New York
  • Services
  • Industries
  • Bankruptcy News / Blog

Fifth Circuit: Chapter 11 Professional Liability Claims property of subsequent Chapter 7 Estate

May 29, 2015
by Richard G. Grant
Fifth Circuit, Property of Estate
0 Comment
Cantu

In Cantu v. Stone (In re Cantu), Case No. 14-40762 (5th Cir. May 20, 2015), the Fifth Circuit ruled that a professional negligence claim that accrued during the pendency of the debtors’ Chapter 11 case was property of the Chapter 7 estate when the Chapter 11 case converted to Chapter 7:

US-CourtOfAppeals-5thCircuit-Seal“Because the misconduct alleged against [the DIP’s accountant] that gave rise to the settlement depleted the estate’s assets, delayed the [Chapter 11] bankruptcy, and injured the creditor body by preventing confirmation of a reorganization plan that could have resulted in a larger recovery for the creditors, the causes of action against him accrued prior to conversion and therefore belong to the estate rather than the Cantus.

See also Cantu v. Schmidt (In re Cantu), — F.3d — –, 2015 WL 1809013 (5th Cir. Apr. 16, 2015)

About the Author
Richard G Grant is the Bankruptcy and Chapter 11 Business Reorganization Practice Area Chair of Culhane Meadows, PLLC.
Social Share
  • google-share
Culhane Meadows PLLC \ Observation \ Fifth Circuit Opini… \ Fifth Circuit: Chap…

Bankruptcy Practice Areas:

Company (Debtor) Representation
Secured Creditor Representation
Unsecured Creditor Representation
Creditors' Committee Representation
Landlord Representation
Asset Sales | Purchases
Trustee Representation
Industries
Firm Contact Information
Testimonials
Sitemap

Note:

For nonbankruptcy services including Corporate and Business Services, Intellectual Property, Technology and nonbankruptcy Litigation and Dispute Resolution, please visit the Firm’s Primary Website.

In the News:

Best Lawyers in Dallas 2016 - Bankruptcy
Four Partners Named Among “Best Lawyers in Dallas” by D Magazine | 2016
Aug 17, 2016
Triangle USA Files Chapter 11
Triangle USA Petroleum Corporation Files For Chapter 11 Bankruptcy Protection | June 30, 2016
Jul 07, 2016
Hercules Bankruptcy
Hercules Offshore Files For Chapter 11 Bankruptcy Protection | June 6, 2016
Jul 05, 2016
Supreme Court | Wellness | Stern v. Marshall
Supreme Court Will Review Jevic to Rule on Structured Dismissals and Gift Plans
Jun 29, 2016

Group Contact Information

Richard G. Grant 214-210-2929 rgrant@culhanemeadows.com

Disclaimer:

*For information Technology Law, Culhane Meadows received a Tier 1 ranking in Atlanta, GA and a Tier 3 national ranking. This website and the communications herein may be considered attorney advertising. Previous results are not a guarantee of future outcome. This website is for informational purposes only and does not constitute legal advice. The information herein is not intended to create an attorney-client or similar relationship. Please do not send us unsolicited confidential information. Whether you need legal services and which lawyer or law firm you select are important decisions that should not be based on this website alone.

Contact Us:

Live on Twitter

Tweets by @chapter11dallas

Subscribe to CM Bankruptcy News:

Bankruptcy News:

Best Lawyers in Dallas 2016 - Bankruptcy
Four Partners Named Among “Best Lawyers in Dallas” by D Magazine | 2016
Aug 17, 2016
Triangle USA Files Chapter 11
Triangle USA Petroleum Corporation Files For Chapter 11 Bankruptcy Protection | June 30, 2016
Jul 07, 2016
Hercules Bankruptcy
Hercules Offshore Files For Chapter 11 Bankruptcy Protection | June 6, 2016
Jul 05, 2016
© 2013 – 2016 Richard G. Grant, P.C.
Designated lawyer responsible for this website: Richard G. Grant