On October 18, Upper Deck International BV (the first UD in the Upper Deck v Upper Deck matter), filed for Chapter 15 bankruptcy protection in the Southern District of New York.
Legal translation: A chapter 15 bankruptcy petition basically says, "Hey Judge, we've got a bankruptcy going on in another country and that one's going to decide what happens to us in the future. Now, while we're waiting to sort that one out, there MIGHT be some ancillary issues in the US that need to be wrapped up. So, we'll probably need you for that."
Given that Upper Deck International had already filed a bankruptcy action in the Netherlands some time ago, it may not seem like this is big deal. But, it actually is. If a bankruptcy proceeding goes forward in the United States, it might trigger an automatic stay of the UD2 matter.
Legal translation: Stop the press! Nothing more to see here until we get this whole bankruptcy thing sorted out.
A hearing is set for November 20 in New York to address some of the preliminary bankruptcy issues, and the United States Upper Deck defendants (who, for the record, are not in bankruptcy proceedings) were invited.
It could be as soon as that hearing ends that UD2 might be put on hold. Maybe indefinitely.
This is not really a surprise since this case started floundering this summer and the defendants' recent push into foreign discovery. It's just another sign that my favorite lawsuit might be coming to a close soon.
The information provided in Paul Lesko's "Law of Cards" column is not intended to be legal advice, but merely conveys general information related to legal issues commonly encountered in the sports industry. This information is not intended to create any legal relationship between Paul Lesko, the Simmons Browder Gianaris Angelides & Barnerd LLC or any attorney and the user. Neither the transmission nor receipt of these website materials will create an attorney-client relationship between the author and the readers.
The views expressed in the "Law of Cards" column are solely those of the author and are not affiliated with the Simmons Law Firm. You should not act or rely on any information in the "Law of Cards" column without seeking the advice of an attorney. The determination of whether you need legal services and your choice of a lawyer are very important matters that should not be based on websites or advertisements.
|Making purchases through affiliate links can earn the site a commission|