Case Overview

Representing Litchfield Ventures, LLC, an affiliate of GLS Capital, LLC, which serves as a litigation funder to the Fresh Acquisition Liquidating Trust. The trust, acting through its trustee, obtained litigation funding from Litchfield to fund the cost of litigating claims pursuant to which the trust seeks recovery. The United States Bankruptcy Court for the Northern District of Texas issued a show cause order regarding the trustee's authority to obtain litigation funding. With the assistance of the firm's attorneys, Litchfield participated at the show cause hearing. The Bankruptcy Court entered an unfavorable ruling for the trust, which is currently being appealed by the trust and Litchfield to the District Court. The appeal involves significant jurisdictional issues, including the Bankruptcy Court's constitutional and post-confirmation jurisdiction to enter a ruling relating to the funding agreement between the trust and Litchfield, a non-party to the bankruptcy proceeding.