“Debtor Must Release Privileged Carlton Fields Attorney-Client Communications, Judge Rules,” Daily Business Review

“Debtor Must Release Privileged Carlton Fields Attorney-Client Communications, Judge Rules,” Daily Business Review

Becker shareholder Jon Polenberg represents creditor-trustee, Daniel J. Stermer in a suit filed in Bankruptcy Court for the Middle District of Florida alleging that ATIF’s 2015 asset transfer to Old Republic National Title Insurance Company, one of the largest title insurance groups in the U.S., was fraudulent.

Mr. Polenberg argued that ATIF attempted to avoid paying creditors while it established a new relationship with Old Republic through Attorneys’ Title Fund Services, LLC that assumed the assets, agents, directors and kept operating as the Fund. The claim is worth the value of the assets transferred, which may exceed $80 million.

Becker moved to compel documents regarding the 2015 Master Agreement entered into between ATIF and Old Republic in which Old Republic acquired all of ATIF’s assets. Carlton Fields argued that the documents were protected by the attorney-client privilege, as Carlton Fields represented Old Republic in the negotiation and drafting of the Master Agreement.

“Under bankruptcy law and Florida law, if you transfer an asset while you have creditors making claims against you and you have certain obligations you owe to your creditors, if you transfer your assets away such that creditors can’t get to them, if there are certain regulations that exist, then the court can reverse that transfer as a fraudulent transfer,” Polenberg said.

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