Courting Failure: How Competition for Big Cases Is Corrupting the Bankruptcy Courts (Hardcover)

~ Lynn LoPucki (Author) "In 1884, James B. Dill was a young lawyer with a small New York City practice and a big idea..." (more)
Key Phrases: New York, United States, Cayman Islands (more...)

Editorial Reviews

From Booklist

As if Americans don't have enough to concern them about corrupt corporate practices, now they need to be worried about powerful forces influencing where large failed corporations will have their bankruptcy trials judged. Fierce competition among courts to attract the bankruptcy trials of corporations with more than $220 million in assets has led to the failure of several companies, including Enron, MCI, and WorldCom. LoPucki, a law professor, offers a clear and alarming look at how courts offer streamlined procedures and lower standards to compete for huge bankruptcy cases that can bring notoriety and influence for the courts and big money to law firms. LoPucki chronicles the evolution of bankruptcy law in the U.S., how states--notably New York, New Jersey, and Delaware--have vied to attract the business, and how the trend toward "forum shopping" has expanded beyond U.S. borders. She concludes with recommendations for reform, including the creation of specialized bankruptcy courts. This is a well-researched, highly accessible look at troubling practices in corporate bankruptcy law. Vanessa Bush
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Review

"...scathing." - The Kansas City Star "...a well-researched, highly accessible look at troubling practices in corporate bankruptcy law." - Booklist "In a searing indictment of the U.S. Bankruptcy Court system, Lynn LoPucki paints a very unflattering picture of the results of bankruptcy court competition for big cases that began in the 1980s. Courting Failure is backed by years of research, hard numbers from LoPucki's web-based research database, and anecdotal evidence that should make some bankruptcy professionals, particularly bankruptcy judges, squirm." - Turnarounds & Workouts Newswire" --This text refers to the Paperback edition.

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Product Details

• Hardcover: 336 pages
• Publisher: University of Michigan Press (January 14, 2005)
• Language: English
• ISBN-10: 0472114867
• ISBN-13: 978-0472114863
• Product Dimensions: 8.9 x 6.3 x 1.3 inches
• Shipping Weight: 1.4 pounds
• Average Customer Review: 5.0 out of 5 stars  See all reviews (2 customer reviews)
• Amazon.com Sales Rank: #1,298,855 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

2 of 2 people found the following review helpful:

5.0 out of 5 stars A important expose - Required reading for anyone in business, April 29, 2008

By	Jacqueline (United States) - See all my reviews

Lynn M. LoPucki has described and documented the insidious corruption that has taken hold of the U.S. bankruptcy courts. Almost no one in the bankruptcy field will talk openly about what has happened to the practice of their profession. But the corruption and prevalence of greed are very real. Lynn M. LoPucki has decoded their playbook and exposed the pattern of corruption. The "case placers" (bankruptcy lawyers and professionals) choose where to file the cases; judges compete for big cases by appealing to them. Compromised judges readily approve lucrative fees for the lawyers and bankruptcy professionals with whom they have cozy relationships, while allowing them to suppress, muzzle and trample on the rights of shareholders and creditors who dare to object. Disturbingly, corrupt bankruptcy lawyers and professionals are becoming more artful at their game. The plays are now so well understood that case placers do not need to spell out their conspiratorial actions to one another. They have mastered the quick Section 363 sale (minimum time, maximum fees). They can effectively hijack companies through their counsel to boards of directors, then be opportunely positioned to generate millions in legal and professional fees, all readily approved by the judges who reward their brethren who bring cases to their courts, even praising them for their "hard work." The U.S. Trustee's office is no help in ferreting out the abuse. Nor is the SEC. Bankruptcy fraud and corruption are not even among the SEC's priorities. So it is "businessperson beware," and especially beware of your lawyers and professional advisors, their motives, and their connections to the bankruptcy world. No serious business person can afford not to know what is happening to the bankruptcy courts. LoPucki's book is required reading.

2 of 2 people found the following review helpful:

5.0 out of 5 stars Excellent and well written book, January 8, 2007

By	Reviewer (Miami FL, USA) - See all my reviews

This review is from: Courting Failure: How Competition for Big Cases Is Corrupting the Bankruptcy Courts (Paperback)

Great book, explains how companies can abuse the bankruptcy court system. Very well written, and interesting for a general audience.