Bankruptcy Adversary Proceedings

An adversary proceeding (or “AP”) is a lawsuit filed separate from but related to the bankruptcy case. It is an action commenced by one or more Plaintiffs filing a Complaint against one or more Defendants and resembles a typical civil case. The Plaintiff is the person, partnership or corporation initiating the lawsuit. The Defendant is the person, partnership or corporation being sued. Certain types of disputes cannot be handled in the bankruptcy case, but instead require the commencement of an adversary proceeding. These types of actions are found in Rule 7001 of the Federal Rules of Bankruptcy Procedure.

An adversary proceeding is commenced by the filing of a Complaint.

Representative Case

Bankruptcy Trustee v. Directors, Officers & Entities, U.S. Bankruptcy Court, Southern District of Florida – Term Lenders v. Directors, Officers & Entities, State District Court, Nevada.  Trombley & Hanes, P.A. lawyers represented the chief executive officer of a major Las Vegas hotel/casino project which filed for bankruptcy protection in 2009.  As a result of the bankruptcy filing, there was a civil adversary action brought by the Trustee against the directors and officers and related entities to the project in bankruptcy court in Miami and a parallel civil action against the directors and officers and related entities brought in state court in Nevada by term lenders to the project.  After several years of complex litigation defending the lawsuits in both bankruptcy court and Nevada state court, the matter was resolved without any judgment of liability or personal financial obligation for Trombley & Hanes’ client.