One of the advantages of a bankruptcy filing is bringing most claims held by or against the debtor into one forum—the bankruptcy court—to be resolved as part of administration of the bankruptcy case. In their most recent article for The Legal Intelligencer, Chairman and CEO Andy Kassner and Corporate Restructuring associate Joe Argentina examine the importance of analyzing claims and set out to answer the following question: does the claim against a nondebtor belong to the debtor or a third party who alleges it was damaged?
Their article, titled “Fifth Circ. Distinguishes Derivative Versus Individual Claims Against Third Parties,” discusses the opinion issued by the U.S. Fifth Circuit Court of Appeals in the Matter of Buccaneer Resources, 912 F.3d 291 (5th Cir. 2019). The Court held that Curtis Burton, former CEO of Buccaneer Resources who was fired shortly before the company filed for bankruptcy, held a claim against a third party allegedly behind the firing or against his employer, the Debtor.