U.S. Government Seeks To Join Interlocutory Appeal Of Fixtures Ruling In GM Bankruptcy Case

LexisNexis (November 20, 2017, 1:58 PM EST) -- The GM bankruptcy case is the gift that just keeps on giving.  First, there were five years of litigation on whether a mistaken termination statement covering a $1.5 billion secured loan was "authorized" within the meaning of Article 9 of the UCC. Then there was a legal malpractice suit brought by some of the secured lenders/investors against the Mayer Brown law firm which represented GM and whose paralegal made the mistaken UCC filing; the plaintiffs lost on the ground that they had no standing because Mayer Brown was not their counsel. Another interesting twist in the litigation was that, before the Second Circuit ruled that the mistaken termination statement was effect to wipe out the lenders' security interest, the lenders were allowed to receive full payment;  thus, the unsecured creditors' avoidance action was transformed into a monstrous claw-back claim.   ...