Cozen O’Connor: Scherling, Eric L.

Eric L. Scherling

Member

Philadelphia

(215) 665-2042

(215) 665-2013

Eric focuses his practice primarily on bankruptcy, insolvency, and creditors' rights matters.

Eric’s clients include Chapter 11 debtors, Chapter 7 trustees, and secured and unsecured creditors. His bankruptcy litigation experience includes the prosecution and defense of preference, fraudulent transfer (including Ponzi "clawback" suits), equitable subordination, non-dischargeability, "bad faith filing" and automatic stay disputes, and the enforcement of parties’ rights under commercial contracts, real property leases, and intellectual property agreements.

Eric's transactional experience includes representation of buyers and sellers in sales conducted pursuant to Section 363 of the Bankruptcy Code and Article 9 of the Uniform Commercial Code, advising on insolvency-related issues in the structuring and documentation of complex financing transactions, and, outside of bankruptcy, the negotiation and drafting of debt workout agreements on behalf of both borrowers and creditors. He also advises a wide array of clients, including vendors, commercial landlords, and service providers on developing strategies to mitigate credit risks, and counsels insurers on a variety of issues related to bankruptcy and insolvency.

Eric received his bachelor of arts in history, magna cum laude and with high honors, from Haverford College in 1998, and was elected to membership in Phi Beta Kappa. Eric received his law degree in 2001 from the University of Pennsylvania School of Law, where he was awarded honors for legal writing. 

Experience

News

Eric Scherling's Chapter Featured in the Legal Intelligencer and Philadelphia Business Journal

March 26, 2012

Eric Scherling's Chapter Featured in the Legal Intelligencer and Philadelphia Business Journal

Cozen O’Connor Launches Capital Markets Group Multidisciplinary Team Serves Expanding, Global Capital Markets’ Client Base

July 07, 2009

Cozen O’Connor Launches Capital Markets Group Multidisciplinary Team Serves Expanding, Global Capital Markets’ Client Base

Cozen O’Connor Names 17 Attorneys to Membership in the Firm

April 28, 2008

Cozen O’Connor has announced that 17 of its associates have been named members of the firm. ''We are extremely proud to welcome these highly qualified attorneys into membership in the firm,'' said Thomas A. Decker, president and chief executive officer of Cozen O'Connor, ''Their individual and combined contributions reflect the talent and strength of our firm.''

Publications

Third Circuit Rules in Favor of Noteholders on Make-Whole Provision in Debt Indenture [Bankruptcy, Insolvency & Restructuring Alert]

November 21, 2016

Eric L. Scherling discusses a recent Third Circuit Court decision that held under the terms of the indentures governing the debtors’ issued notes, an “optional redemption” premium was payable to noteholders notwithstanding the automatic acceleration of the indebtedness upon bankruptcy pursuant to another provision of the indenture.

Application of Sovereign Immunity in Bankruptcy Actions [The Legal Intelligencer]

February 19, 2014

The U.S. Court of Appeals for the Seventh Circuit has ruled in favor of an unprecedentedly broad application of sovereign immunity in bankruptcy-related actions in its recent opinion, In re Equipment Acquisition Resources, 2014 U.S. App. LEXIS 2141 (Feb. 4, 2014). The court held that a debtor-in-possession cannot bring an Illinois fraudulent-transfer claim against the Internal Revenue Service (IRS) because its creditors could not bring such a claim against the IRS under state law due to sovereign immunity.

Dismissal of 'Litigation Tactic' Bankruptcy Cases [The Legal Intelligencer]

October 21, 2013

It is the morning of a scheduled sheriff’s sale. Following several months, and many thousands of dollars of expense, spent in obtaining a judgment, providing the requisite notices and executing on its lien, a secured creditor is finally nearing its recovery of at least a portion of its claim, through a real property foreclosure. One hour before the scheduled sale, however, the creditor’s phone rings. It is the sheriff, calling to report that the sale has been postponed. A copy of a bankruptcy petition, filed just that morning, has been faxed to the sheriff on the property owner’s behalf. The sheriff cannot move forward with the sale in the face of this last-minute development, leaving the creditor with little to show for its time and money, other than the promise of additional months’ aggravation and delay ahead.

Courts Recharacterizing Insider 'Loans' as Equity [The Legal Intelliencer]

May 14, 2013

In an opinion issued April 30, In re Fitness Holdings International, 2013 U.S. App. LEXIS 8729, the U.S. Court of Appeals for the 9th Circuit joined a number of other circuit courts in recognizing the authority of courts to recharacterize purported debt owed by a corporation as equity.

Third Circuit Broadly Defines IP Licenses [The Legal Intelligencer]

February 11, 2013

The U.S. Court of Appeals for the Third Circuit recently affirmed its expansive definition of what constitutes an intellectual property license in In re Spansion. The Third Circuit clarified that a license need not be expressly labeled as such or formally grant intellectual property rights, but instead is a mere waiver by the holder of intellectual property of its right to sue.

Third Circuit Protects Post-Confirmation Appeal Rights

October 19, 2012

The U.S. Court of Appeals for the Third Circuit recently addressed the tension that may exist between the needs of a bankrupt debtor attempting to reorganize and the rights of nondebtor litigants in In re Philadelphia Newspapers, 2012 U.S. App. LEXIS 15419 (3d Cir. July 26, 2012).

Eleventh Circuit Expands Fraudulent Transfer Liability in Tousa Decision [Bankruptcy, Insolvency & Restructuring Alert]

May 23, 2012

Eleventh Circuit Expands Fraudulent Transfer Liability in Tousa Decision - Bankruptcy, Insolvency & Restructuring Alert - In a decision that may greatly expand the level of due diligence required of creditors seeking payment from distressed debtors, on May 15, 2012 the U.S. Court of Appeals for the 11th Circuit (the Circuit Court) issued an opinion in In re TOUSA, Inc. that affirmed the original decision of the U.S. Bankruptcy Court...

The Duty of Chapter 7 Trustees to Perform Obligations of an ERISA Plan Administrator: Jurisdictional and Practical Considerations [Inside the Minds]

March 18, 2012

The Duty of Chapter 7 Trustees to Perform Obligations of an ERISA Plan Administrator: Jurisdictional and Practical Considerations - Inside the Minds - Bankruptcy trustees are fiduciaries. A Chapter 7 trustee’s primary obligation is to “collect and reduce to money the property of the estate for which such trustee serves, and close such estate as expeditiously as is compatible with the best interests of parties in interest[.]” 11 U.S.C. § 704(a)(1) (2012). As an officer of the court and as a representative of a debtor’s creditors, the trustee has a duty to protect and preserve estate property, and to realize the maximum return for...

Spring 2010 [Business Law Observer]

April 19, 2010

This Spring edition highlights many pertinent issues confronting a business owner in the 21st century. In the wake of unprecedented economic trouble, our lead article discusses how to protect your business from preference exposure when a customer goes bankrupt.

Education

  • University of Pennsylvania Law School, J.D., 2001
  • Haverford College, B.A., magna cum laude, 1998
  • New Jersey
  • Pennsylvania
  • Pennsylvania Supreme Court
  • U.S. Bankruptcy Court -- Eastern District of Pennsylvania
  • U.S. Bankruptcy Court -- Middle District of Pennsylvania
  • U.S. Bankruptcy Court -- New Jersey
  • U.S. District Court -- Eastern District of Pennsylvania
  • U.S. District Court -- Middle District of Pennsylvania
  • U.S. District Court -- New Jersey
  • American Bankruptcy Institute
  • Philadelphia Bar Association