News & Events

The Second Circuit issued a per curiam decision today in favor of Richard C. Breeden - Chapter 11 trustee (the "Trustee") for The Bennett Funding Group, Inc. The Trustee had previously recovered approximately $27.5 million in a settlement of claims asserted against the debtors' reinsurer and several related parties. A group of investor creditors (the "Ades Investors") sued the Trustee in an effort to obtain a declaration that the settlement proceeds were held in a constructive trust for their sole benefit and could not be distributed to other creditors, including similarly-situated investor creditors. The Bankruptcy Court granted the Trustee's motion to dismiss these claims in October 2006. This decision was affirmed by the District Court on July 9, 2007. The Ades Investors appealed to the Second Circuit which heard argument on November 24, 2008. The Second Circuit issued a written decision 29 days later in which it rejected the Ades Investors' arguments and cleared the way for the Trustee to make his final distribution of estate assets to creditors this month.

This team advising Breeden includes Bill Russell, Kathy McLendon, Michelle Cherande, Marissa Piropato, Carlos Lopez and paralegal Sean Weekes.