The nearly three-decade-old bankruptcy and reorganization of comic book giant Marvel produced a company that has become a major force in Hollywood, but it also led to an enduring legal precedent on conflict-of-interest standards for bankruptcy professionals that is still cited today.
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Ira Herman, a bankruptcy partner with Blank Rome, said the ruling brought needed clarity to the issue of counsel conflicts, establishing that more than the appearance of conflict was needed to object to a professional's retention.
"It's a practical matter where there are cases where there's no law firm that doesn't have something," he said.
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On the flip side, any firm big enough to take on giant bankruptcies like General Motors or Lehman Brothers would have had dealings with multiple parties in interest, according to Herman.
"As a practical matter they could never find counsel, except a boutique," he said.
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"More than Just Superheroes: Marvel Inked Ch. 11 Legacy," by Rick Archer was published in Law360 Bankruptcy Authority on October 18, 2024.
