All posts by Ted Folkman

About Ted Folkman

Ted Folkman is a shareholder with Murphy & King, a Boston law firm, where he has a complex business litigation practice. He is the author of International Judicial Assistance (MCLE 2012), a nuts-and-bolts guide to international judicial assistance issues, and the publisher of Letters Blogatory, the Web's first blog devoted to international judicial assistance, which the ABA recognized as one of the best 100 legal blogs in 2012 and 2014.

Case of the Day: Kumkang Valve Manufacturing Co. v. Enterprise Products

The case of the day is Kumkang Valve Manufacturing Co. v. Enterprise Products Operating LLC (Tex. Ct. App. 2014). Enterprise purchased 1,000 high-pressure valuves from Kumkang, a Korean firm, for use in its gas-processing plants in Colorado and Wyoming. The valves failed, and Enterprise paid $11 million to replace them. Enterprise sued Kumkang in 2007 for breach of warranty in the Texas state court. In 2009, while the case was pending, Kumkang sought protection under Korean bankruptcy law, and it then filed a Chapter 15 petition in a bankruptcy court in the Southern District of Texas seeking recognition of the Korean main proceeding. The bankruptcy court recognized the Korean proceeding, which had the effect of staying the Texas litigation.

Enterprise did not appear in the Korean bankruptcy case, and it was not included on the list of creditors in the Korean proceeding, or mentioned in the plan of reorganization the Korean court approved. Kumkang did not inform the US bankruptcy court of the approval of the plan in Korea, and Kumkang’s US lawyer informed the US bankruptcy court that he had been unable to communicate with his client and had no information about the status of the Korean proceedings. The US bankruptcy court, after providing a final opportunity for the US lawyer to obtain information from his client, dismissed the Chapter 15 case and lifted the stay.

In the main case, the parties stipulated that Enterprise had suffered $11 million in damages due to breach of express warranty and breach of the warranty of fitness for a particular purpose, and Kumkang moved for summary judgment on the affirmative defense of discharge in bankruptcy. Enterprise cross-moved for summary judgment. The trial court gave judgment for Enterprise, and Kumkang appealed.
Continue reading

Letters Blogatory Makes The 2014 Blawg 100

2014 ABA Blawg 100 Readers, thank you for nominating Letters Blogatory again for the ABA’s 2014 Blawg 100 list. I’m grateful to you and to the ABA Journal’s editors for helping me bring attention to the wide, wide world of international judicial assistance.

For new readers, welcome! I hope you’ll stick around for my regular features:
Continue reading

Lago Agrio: My Prediction

Readers, only one of you was foolhardy brave enough to take a guess about the outcome of the Second Circuit RICO appeal. That’s okay. Here for what it is worth is my prediction. Before giving it, a word of explanation is in order. I am not using any particular methodology, and I am not going to give much explanation. Think of this post as my turn in a parlor game “for entertainment value only.” You’ve been warned.
Continue reading