Savage & Associates, P.C. v. K&L Gates LLP (In re Teligent, Inc.)
- Citation:
- Nos. 10-2257-bk(L), 10-2411-bk (XAP) (2d Cir. May 5, 2011)
- Tag(s):
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- Ruling:
- The Court ruled that K&L Gates had too remote an interest in a settlement agreement to have been considered a "party in interest" under Bankruptcy Code section 1109 for purposes of being heard by the bankruptcy court on the agreement's approval.
- Procedural context:
- Appeal from an order of the United States District Court for the Southern District of New York affirming the bankruptcy court's denial of a motion for injunctive relief, reviewed de novo.
- Facts:
- Savage & Associates, P.C. ("Savage"), as representative of an unsecured claims estate, entered into a settlement agreement with a third party that required the third party to commence a malpractice action against K&L Gates. Savage then sought to enjoin K&L Gates from raising the validity of certain provisions of the settlement agreement as a defense to the malpractice action, reasoning that any such arguments should have been raised when the bankruptcy court was deciding whether to approve the agreement.
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