Rel liquidating trust
Computation of child or spousal support generally involves a three-step process.
First, the court must determine the income and expenses of the parties; second, it must determine the needs of the obligee; and finally, based on the ability of the obligor to pay and the needs of the obligee, it must enter an appropriate order for support.
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In the intervening period, the Delaware Supreme Court issued its opinion in North American Catholic Educational Programming Foundation, Inc. Gheewalla, thereby, rendered meritless plaintiff's claim that the Directors breached fiduciary duties owed to Torch's creditors. The court determined that “[t]he Gheewalla court was specific in its findings that such direct claims as these by creditors are not actionable,” id. This ill-conceived pleading posture distracts from Bridge Associates's standing as trustee to bring a direct suit on the Trust's behalf for Torch's claims against the Directors. (In re Mortgage America Corp.), 714 F.2d 1266, 1274 (5th Cir.1983). Under Rule 15, the courts consider such equitable factors as “(1) undue delay; (2) bad faith; (3) dilatory motive on the part of the movant; (4) repeated failure to cure deficiencies by any previously allowed amendment; (5) undue prejudice to the opposing party; and (6) futility of amendment.” Ellis, 394 F.3d at 268. 08-30364, 2009 WL 117944, at *2 (5th Cir.2009) (affirming denial of a motion for leave to amend where “[a]ppellants had several opportunities to state their best case”) (citing Price v.
(argued), Lemle & Kelleher, LLP, New Orleans, LA, for Torch Liquidating Trust. Robert Joseph Burns, Jr., Perry, Atkinson, Balhoff, Mengis & Burns, Baton Rouge, LA, for XL Specialty Ins. Torch Liquidating Trust, through its trustee Bridge Associates L. C., brings this suit alleging breach of fiduciary duties by the officers and directors of Torch Offshore, Inc.; Torch Offshore, L. After Bridge Associates clarified that it was not alleging fraud but instead only breach of fiduciary duties, the court denied defendants' motion. In Gheewalla, the court held that “the creditors of a Delaware corporation that is either insolvent or in the zone of insolvency have no right, as a matter of law, to assert direct claims for breach of fiduciary duty against the corporation's directors.” Id. The court reasoned that “the general rule is that directors do not owe creditors duties beyond the relevant contractual terms.” 930 A.2d at 99 (quotation marks and footnotes omitted). The district court therefore did not abuse its discretion in denying plaintiff an opportunity to amend. Standing The Trust, through its trustee Bridge Associates, attempts to allege-in the form of a shareholder and creditor derivative suit-that the Directors breached their fiduciary duties. Under Delaware law, “[d]irectors owe their fiduciary obligations to the corporation and its shareholders.” Gheewalla, 930 A.2d at 99 (citing Malone v. Rule 15 of the Federal Rules of Civil Procedure states that a court “should freely give [leave to amend] when justice so requires.” “Although Rule 15 evinces a bias in favor of granting leave to amend, it is not automatic.” Southmark Corp. Schulte Roth & Zabel (In re Southmark Corp.), 88 F.3d 311, 314 (5th Cir.1996) (quotation marks and citation omitted).
We will first examine the various statutory definitions of these terms, and then we will examine the relevant case law. It is also worth noting that the fact that income would be subject to a community property claim does not shield one-half of the income from support calculations.
While the article focuses primarily on the definitions of income and expenses for child support, reference will also be made to alimony cases considering the issue. 303.8 (federal regulations require that state guidelines, at a minimum, take into consideration all income and earnings of the obligor).