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Brian Setzer's Bankruptcy
Highest Court E.D. New York
Year Ended 1985
Plaintiffs Setzer, Brian (Orchestra)
Defendants Arista Records
Music Producer(s)
Other No Other parties on file
Short Description In an interesting bankruptcy dispute, the Eastern District of New York found that musician Brian Setzer, first of the Stray Cats then later a solo artist, had filed for bankruptcy in bad faith, essentially to avoid an adverse prior ruling in a state contract case. Two different parties filed two different suits in two different courts in two different countries, each alleging to be Setzer's manager and owed twenty percent of his income, amounts still unpaid. In the Philadelphia action, Setzer was apparently unresponsive and sanctioned by the court. Thus when Setzer sought to file an amended answer including new counterclaims, the court denied his request. It was around this time that Setzer filed the instant bankruptcy proceeding, pointing to the possible impending judgments, which could total $4 million, and a secured mortgage debt of $250,000. Through an adversary proceeding Setzer brought in conjunction with his bankruptcy filing, he included claims that the Philadelphia court had previously denied him the opportunity to add through amendment. The District Court held Setzer had filed in bad faith. Not only was his bankruptcy proceeding an attempted run-around on his state case, but the "debts" he cited weren't yet existent; they were merely expected damages from as-of-yet undecided court cases. Further, Setzer's attempt to reject the contracts as bankruptcy laws allow would be pointless if he were to win the Philadelphia action, and may run counter to the outcome of that case. All these factors, and others, implied bad faith, and Setzer had failed to refute any of them. His bankruptcy filing was denied. - LSW

Legal Issues
Bankruptcy Chapter 13 Assumption/Rejection of Obligations
    Filing, Compliance & Dismissal
Torts Economic Torts Fraud, Misrepresentation & Inducement


Opinions In re Setzer
52 B.R. 401
E.D. New York , July 30, 1985 ( No. 85 CV 1626 )


In re Setzer
47 B.R. 340
E.D. New York , March 21, 1985 ( No. 884-41614-20,No. 884-0287-20 )


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Related Searches Parties
Arista Records ( Defendant )
Music Producer(s) ( Defendant )
Setzer, Brian (Orchestra) ( Plaintiff )

Legal Issues
Bankruptcy / Chapter 13 / Assumption/Rejection of Obligations
Bankruptcy / Chapter 13 / Filing, Compliance & Dismissal
Torts / Economic Torts / Fraud, Misrepresentation & Inducement

Courts
E.D. New York (highest court)


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