SDNY Bankruptcy Court Prohibits a Court Appointed Claims Agent from Selling Direct Access to Creditor Claims Register Data to XClaim – LexBlog
Case: In re Madison Square Boys & Girls Club, Inc. bankruptcy proceeding, Case No. 22-10910-shl.
A New York Bankruptcy Judge was tasked with deciding whether a court appointed claims agent, via a fee arrangement, could sell and profit (10% commission) through providing direct access to publicly available claims register information. Federal laws 28 U.S.C. § 156(c), 28 U.S.C. § 1930(e) and SDNY Bankr. Local Rule 5075-1 govern the ability of a claims agent to act as the Clerk of the Court in providing non-exclusive access to the public claims register as well as proscribing and limiting the fees that may be charged for performing these quasi-Clerk services. The judge ultimately held that the fee arrangement specifically violated these laws.
Xclaim’s fee arrangement could not be reconciled with the applicable rules and regulations including the proscribed fees that may be charged.
Source: SDNY Bankruptcy Court Prohibits a Court Appointed Claims Agent from Selling Direct Access to Creditor Claims Register Data to XClaim – LexBlog
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A New York Bankruptcy Judge was tasked with deciding whether a court appointed claims agent, via a fee arrangement, could sell and profit (10% commission) through providing direct access to publicly available claims register information. Federal laws 28 U.S.C. § 156(c), 28 U.S.C. § 1930(e) and SDNY Bankr. Local Rule 5075-1 govern the ability of a claims agent to act as the Clerk of the Court in providing non-exclusive access to the public claims register as well as proscribing and limiting the fees that may be charged for performing these quasi-Clerk services. The judge ultimately held that the fee arrangement specifically violated these laws.