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ARTICLE · 06 SEPTEMBER 2016

Third Circuit Denies Summary Judgment In Issue Of Pre-emption

Fox Rothschild LLP
Fox Rothschild LLP
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Prior to the instant conflict, Maury Rosenberg and several companies were the target of involuntary bankruptcy petitions.

United StatesInsolvency/Bankruptcy/Re-Structuring

On August 29, 2016, the Third Circuit released a precedential opinion (the “Opinion”) which opined on whether filing an involuntary bankruptcy petition could qualify as tortious interference under state law.  The Third Circuit’s Opinion is available here.  This Opinion was issued in Rosenberg v. DVI Receivables XVII, LLC, Case No. 15-2622.  The District Court had ruled that the tortious interference claim was preempted by § 303(i) of the Bankruptcy Code.  The Third Circuit reversed and remanded this case back to District Court.  While the background and history of the underlying conflict is extensive, this decision was issued to resolve a narrow question of preemption law.  Opinion at *4.

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