Shareholder Matthew Hamermesh recently spoke with Law360 about his representation of the City of Chester in an ongoing litigation stemming from the city’s 2022 bankruptcy.  

Hangley Aronchick secured a ruling from a federal bankruptcy court in 2023 that Chester was not required to remit gambling-tax revenue to Pennsylvania’s Delaware County, because of its Chapter 9 proceedings. In its decision, the court found that a lien the county had placed on money generated by a Chester-based casino did not survive the city’s bankruptcy petition. 

Delaware County has since appealed that decision to the U.S. Court of Appeals for the Third Circuit, arguing in a Dec. 30 filing that exceptions to the federal Bankruptcy Code allow the county to collect the funds, despite Chester’s bankruptcy. 

Matt, who leads the firm’s representation of Chester along with associate Jackson Teague, told Law360 he was confident the Third Circuit would uphold the bankruptcy court’s well-reasoned decision. 

“The bankruptcy court correctly held that the city of Chester’s bankruptcy case limits the bondholder’s secured claims, for the benefit of all creditors of the city and all parties in interest,” Matt said. “That decision is an important part of the city’s adjustment proceedings, and we intend to defend it vigorously in the appeal.”

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