Deepening Insolvency: Is It a "Measure of Damages"?
Bankruptcy attorney, scholar, friend and all-around good person, Steve Jakubowski, posts here on his Bankruptcy Litigation Blog, about a follow-up to the recent Delaware Supreme Court's affirmance (see post here), of the Chancery Court's Trenwick decision (see post here), and based on other court decisions in other jurisdictions as well as several articles, analyzes whether "deepening insolvency", though dead in Delaware as a cause of action, may live on as a "measure of damages". He concludes his thorough analysis as follows:
"... while the death knell tolls for "deepening insolvency" as an independent cause of action, confusion continues to reign over whether damages for "deepening insolvency" exist, and if so, under what circumstances."
