Big Win for Debtors-In-Possession represented by BG Law
Larry Gabriel and Robyn Sokol received a favorable judgment regarding the interpretation of a settlement agreement filed in state court and, as a result, brought approximately $630,000 into the debtors’ bankruptcy estate. After a five day trial, the United States Bankruptcy Court, Judge Julia Brand presiding, ruled in favor of the Debtors, finding that the settlement agreement was ambiguous and, after reviewing the extrinsic evidence presented including the testimony of six witnesses, it was clear that the intent of the parties was that the settlement proceeds at issue would be disbursed to the Debtors only. As a result, the Bankruptcy Court will enter a judgment awarding 100% of the settlement proceeds to the Debtors.
Before the trial on the above matter the defendant First Intercontinental Bank attempted to attach the settlement proceeds in violation of the automatic stay. Larry and Robyn were successful in enjoining such actions and obtained an award of actual and punitive damages against defendant First Intercontinental Bank and its counsel in excess of $57,000.