(Bankr. E.D. Ky. Mar. 20, 2015)
The bankruptcy court approves the proposed settlement agreement under Bankruptcy Rule 9019. The court applies the Sixth Circuit Bard factors to determine whether the settlement is fair and equitable: (1) probability of success in the litigation; (2) difficulties, if any, to be encountered in the matter of collection; (3) complexity of the litigation involved; and (4) paramount interest of the creditors and a proper deference to their reasonable views in the premises. The claim settled was a bad faith claim against an insurer under Florida law. Applying each of the factors, the Court holds the settlement is fair and equitable. Opinion below.
Author: Matt Lindblom