Bankrupt Enron paid more than a billion dollars in cash to bankruptcy lawyers, financial advisors, and other bankruptcy professionals. The managers of Enron, like those of most bankrupt companies, paid the professionals with other peoples' money - money that would otherwise have gone to creditors, employees, shareholders, or to saving the companies. To prevent excessive payments, the bankruptcy code and rules establish an elaborate system for public reporting and court approval of professional fees. Armed with the ability to choose among courts that want or need to attract the cases, the professionals have largely taken charge of the fee-control system and rendered it toothless. The professionals ignore ignore the rules and the courts do nothing about it. Objections to fees are rare, and the courts award almost 99% of the amounts applied for. Fees rose at the rate of 9.5% per year from 1998 through 2007. Effective methods for assessing and controlling fees do exist, but it is not in the interests of the courts or the professionals to employ them. Based on a study of thousands of documents from the court files in 102 of the largest cases, bankruptcy expert, Lynn M. LoPucki, and political scientist, Joseph W. Doherty, provide an unprecedented window on the worlds of bankruptcy professionals, professional fees, and their scientific study. Through that window, readers see both a disturbing picture of a legal system in crisis and a hopeful one with opportunities for desperately needed reform. Professional Fees in Corporate Bankruptcies is a scholarly work that employs statistical analysis, and documents its findings to scientific standards. But the authors have written for readers with technical backgrounds in neither bankruptcy nor statistics. This book will be of interest not only to scholars studying professional fees, but also to bankruptcy professionals, judges, policymakers, and anyone interested in the functioning of law-based systems.
LoPucki's provocative critique of Chapter 11 is required reading for everyone who cares about bankruptcy reform. This empirical account of large Chapter 11 cases will trigger intense debate both inside the academy and on the floor of Congress. Confronting LoPucki's controversial thesis-that competition between bankruptcy judges is corrupting them-is the most pressing challenge now facing any defender of the status quo." -Douglas Baird, University of Chicago Law School "This book is smart, shocking and funny. This story has everything-professional greed, wrecked companies, and embarrassed judges. Insiders are already buzzing." -Elizabeth Warren, Leo Gottlieb Professor of Law, Harvard Law School "LoPucki provides a scathing attack on reorganization practice. Courting Failure recounts how lawyers, managers and judges have transformed Chapter 11. It uses empirical data to explore how the interests of the various participants have combined to create a system markedly different from the one envisioned by Congress. LoPucki not only questions the wisdom of these changes but also the free market ideology that supports much of the general regulation of the corporate sector." -Robert Rasmussen, University of Chicago Law School A sobering chronicle of our broken bankruptcy-court system, Courting Failure exposes yet another American institution corrupted by greed, avarice, and the thirst for power. Lynn LoPucki's eye-opening account of the widespread and systematic decay of America's bankruptcy courts is a blockbuster story that has yet to be reported in the media. LoPucki reveals the profound corruption in the U.S. bankruptcy system and how this breakdown has directly led to the major corporate failures of the last decade, including Enron, MCI, WorldCom, and Global Crossing. LoPucki, one of the nation's leading experts on bankruptcy law, offers a clear and compelling picture of the destructive power of "forum shopping," in which corporations choose courts that offer the most favorable outcome for bankruptcy litigation. The courts, lured by big money and prestige, streamline their requirements and lower their standards to compete for these lucrative cases. The result has been a series of increasingly shoddy reorganizations of major American corporations, proposed by greedy corporate executives and authorized by case-hungry judges.
Commercial Transactions: A Systems Approach explores the nuances of transaction law from a systems’ perspective, examining the infrastructure that supports commercial transactions and how lawyers apply the law in real-world situations. The outstanding team of co-authors uses an assignment-based structure that allows professors to adapt the text to a variety of class levels and approaches. Well-crafted problems challenge students’ understanding of the material in this comprehensive, highly teachable text. New to the Seventh Edition: 25 new cases spread across all three major parts of the text More than 50 new problems in the Sales material Updated and revised discussion of proceeds issues in bankruptcy Revisions through the book to reflect new technologies Professors and students will benefit from: Easy-to-teach materials with class sessions that flow naturally from bite-sized assignments, each with a problem set Comprehensive Teachers’ Manual that provides answers to every question we ask Accessible authors who are happy to interact directly and on short notice with adopters Assignment structure that makes it easy to select topics for coverage The opportunity for adopters to become characters in the book Information-rich, concise text Clear explanations of the law and institutions – no hiding of the ball Having all the information students need to solve the problems A focus on the things students need to know to succeed in their future jobs A real-life approach that prepares students for practice
Bankruptcy and Article 9: 2021 Statutory Supplement is offered in two versions. Both are smaller, lighter, and more portable than competing Supplements. Each version includes: UCC Article 1, UCC Article 9, key excerpts from UCC Article 2 and UCC Article 8, Uniform Fraudulent Transfer Act, Uniform Voidable Transactions Act, Uniform Motor Vehicle Certificate of Title and Anti-Theft Act, Bankruptcy Code, selections from the Bankruptcy Rules Title 18 and Title 28 of the United States Code, Fair Debt Collection Practices Act, and Federal Tax Lien Act. This year’s Supplements contain numerous amendments to the Bankruptcy Code. They are from the COVID-19 Bankruptcy Relief Extension Act of 2021, the Consolidated Appropriations Act, and the Bankruptcy Administrative Improvement Act of 2020. The Supplement also contains new UCC comments on protected series and the effect of bad faith purchase at an Article 9 sale. It also contains minor amendments to the Bankruptcy Rules and the bankruptcy related provisions of Title 28. The Visilaw Marked Version contains the same statutes, but with modified formatting and patented VisiLaw markings that makes the statutes easier to read and improves comprehension. Three out of five commercial law students chose the VisiLaw Marked Version over the unmarked version. These features are unique to the VisiLaw Marked Version: Each mark has the same, clearly defined meaning in every occurrencePrimary sentence structure is visible at a glanceUnderlining creates readable sentences-within-sentencesCohesive phrase marks indicate words that should be read togetherStandardized marks facilitate a variety of reading strategiesBoldface makes paragraph numbers and letters unambiguousVariable spacing separates paragraphsSquare paragraphs, indented by steps, keep readers orientedIdentical in coverage to the unmarked version, so each of your students can make his or her own choice. Make the VisiLaw Marked Version of the Bankruptcy and Article 9 Statutory Supplement an option for your students this fall. Benefits to the professor: Provides a foundation for teaching statutory analysisStudents prefer VisiLaw marked statutes and will appreciate your recommendationStudents in the same class can use different versionsStudents can read more statutes in the same timeSee features of statutes you’ve never seen beforeSaves the time you used to spend marking statutes – year after year
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