• Southern District Establishes Standards for 'Good Faith' Participation in Cort-Ordered Mediation
  • July 27, 2011 | Authors: Daniel L. McAuliffe; Jeffrey A. Wurst
  • Law Firm: Ruskin Moscou Faltischek, P.C. - Uniondale Office
  • The A.T. Reynolds & Sons, Inc. decision reverses the bankruptcy court's order holding the secured lender in the underlying bankruptcy proceeding, and its counsel, in contempt for failing to mediate in good faith and imposing sanctions upon them. The decision not only vinciates the lender and its counsel for its "no pay" position taken at the mediation, but also articulates a clear and objective standard for parties' future "good faith" participation in a court-ordered mediation.