The only thing worse for a licensor than losing money when its licensee files for bankruptcy is paying attorneys’ fees on top of that to stop the bleeding.
Two of the most common bankruptcy proceedings that licensor creditors get involved in are: 1) hearings related to the licensee’s attempt to assume an executory license agreement; and 2) lawsuits against the licensor to recover so-called preferential transfer payments from the licensee.
But can a clever licensor recover attorneys’ fees incurred in post-petition bankruptcy proceedings, if it had the foresight to include a well-drafted attorneys’ fee provision in its boilerplate license agreement?
He says that clever licensor maybe, possibly can — say, if he has a clever lawyer, like Richard Bergovoy. Click the link to read about how it might be done.
One Reply to “Clever is as clever shifts fees”
I think he’s overstating the chance of such a problem a bit…
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