Robert M. Lawless 3 - College of Law

Delaware Bankrupcty Court relies on scholarship from Lawless in opinion

In the U.S. Bankruptcy Court for the District of Delaware, Judge Craig T. Goldblatt relied heavily upon the scholarship of Professor Robert Lawless in his opinion for Yellow Corporation’s Chapter 11 plan. Citing “Reframing Arbitration & Bankruptcy,” Judge Goldblatt ruled that Yellow Corp. must resolve issues in bankruptcy court rather than in arbitration. Speaking to the American Bankruptcy Institution about the decision, Lawless explained “Judge Goldblatt cut through the rhetoric and got it right.”

Read the Bankruptcy Court opinion online.
Read the American Bankruptcy Institute’s examination of the ruling.

Lawless quoted by ABC on financial penalties imposed upon former President Trump

Judge Arthur Engoron dealt a significant legal and financial blow to former President Donald Trump’s business empire, including a staggering $355 million fine and temporary removal of Trump and his sons from business leadership roles. Professor Robert Lawless, speaking to ABC News, explained what may happen to Trump and his businesses if his appeal fails to limit the fines imposed by Engoron, including limited access to capital, increased oversight, and the possibility of forced asset sales. Trump’s ongoing legal battles, including the recent civil suit payout to E. Jean Carroll, could exacerbate his financial difficulties, with bankruptcy offering little respite due to the non-dischargeable nature of legal fines.

Read the full article on the ABC News website.

Lawless critical of judge shopping in Wall Street Journal article on WeWork bankruptcy

WeWork’s recent Chapter 11 filing in New Jersey is the seventh large bankruptcy filing in the state since the previous November, as corporations increasingly choose the state as the destination to restructure their debt. New Jersey’s share of large bankruptcies nationwide has risen to 5%, partly due to the stability provided by consistent judges in New Jersey and partly due to rulings attractive to corporations. Professor Robert Lawless told the Wall Street Journal changes may be needed to address the perception that companies can freely choose where to file their bankruptcy petitions. “I can understand the reasons why companies are going to New Jersey, but I still think this rampant forum shopping undermines confidence in the courts,” he said. “Something needs to be done.”

Read the full article from the Wall Street Journal.

Lawless and Brubaker sign letter urging abolition of Texas bankruptcy court panel

A dozen academics, including Professors Ralph Brubaker and Robert Lawless, are urging the United States Bankruptcy Court to abolish the two-judge panel on a south Texas bankruptcy court that has earned a reputation as a key venue for large bankruptcy cases. The letter from the legal scholars to Chief Judge Eduardo V. Rodriguez comes as a result of media reports about undisclosed relationships between Judge David R. Jones and parties that appeared in his Texas bankruptcy court. Jones was the chief judge who created the two-judge panel to oversee complex cases, which was established in part because of “judge shopping” by companies within Texas’s jurisdiction. The two-judge panel became a target for the same practices, however, leading to “controversy and criticism for undermining public confidence in the chapter 11 system,” as the letter to Judge Rodriguez states.

Read the full letter to Judge Rodriguez urging the abolition of the Texas two-judge panel system.

Read a Law360 article quoting Professor Lawless about the controversy in the Texas court.

Lawless speaks to Philadelphia Inquirer about bankruptcy protection and student loans

When student loan payments resumed in October, an op-ed in the Philadelphia Inquirer proposed a solution to help debtors: Restore bankruptcy rights to student loans. To make his case, the author of the piece spoke to bankruptcy expert Professor Robert Lawless about the history of bankruptcy protection for student loans. Lawless explained that although federal student loans are not currently permitted in bankruptcy filings, legislation that restores these rights would not contravene existing law.

“Any law passed by both houses of Congress and signed by the president can amend the Bankruptcy Code,” said Lawless.

Read the full article.

Lawless quoted in Reuters series on lasting effects of slavery

In their series on how the effects of slavery remain with us today, Reuters spoke to Professor Robert Lawless about the history of bankruptcy. The series, titled “Slavery’s Descendants” examines how slavery, the Jim Crow era, and racial discrimination put two different families (one white, one black) on very different economic paths. For part four, “American Dreams,” Lawless provides his expertise to explain racial discrepancies in bankruptcy cases, which have tended to have worse outcomes for Black debtors than for white debtors.

Read the full article on Reuters’ website.

Lawless quoted in article on Shelby County bankruptcies

In the past year, Shelby County, Tennessee, has a record of six bankruptcies per 1,000 residents, a rate that tops the nation. With none of the other 100 largest counties in the United States having more than four per 1,000, the difference is not particularly close, either. In their investigation of this phenomenon, MLK50: Justice Through Journalism, a nonprofit Memphis newsroom, quoted Professor Robert Lawless. “(Shelby County) is a tremendous outlier,” said Lawless. “It’s hard to think of a reason why (that is) except for legal practice.… I have no question that there are attorneys in Memphis doing the right things by their client.… And I have no question that there are attorneys in Memphis that are taking advantage of people.”

Read the full article on the MLK50 site.