Investors Fail to Secure Lifting of Stay Of Their Claims Against Firm in Receivership
BNA's U.S. Law Week is reporting on a Third Circuit case addressing the standards for granting a motion to lift a stay of litigation imposed as part of nonbankruptcy receivership proceedings :
"Investors who alleged that a firm in receivership proceedings had fraudulently induced their investment failed to show that a stay of litigation should be lifted to allow them to pursue their claims, the U.S. Court of Appeals for the Third Circuit held Nov. 8 (United States v. Acorn Technology Fund LP, 3d Cir., No. 04-3663, 11/8/05). The court took this occasion to delineate the specific factors to be used in determining whether to lift a stay of litigation entered in nonbankruptcy receivership proceedings. Adopting a three-factor test used by the Ninth Circuit, Judge Franklin S. Van Antwerpen ultimately decided that the factors weighed against lifting the stay in this case."
U.S. Law Week, Volume 74 Number 19 Tuesday, November 22, 2005, Page 1293, ISSN 1522-4317. BNA subscribers can access the story on the case by clicking here. Westlaw subscribers can view the case by clicking here.