Scott Cousins Speaks With Law360 On Relationship Between BigLaw and Bankruptcy Law

Wilmington, Del. (July 24, 2025) - Wilmington Partner Scott Cousins recently spoke with Law360 for an article discussing how BigLaw has impacted the development of bankruptcy law.

As the article describes, before Congress passed the Bankruptcy Reform Act of 1978, large law firms typically referred their insolvent clients to less expensive, smaller firms to handle bankruptcy work. Following the Act’s passage, however, BigLaw became involved in some of the largest bankruptcy matters and began using the Bankruptcy Code quite creatively. The article further observes that due to BigLaw's involvement, bankruptcy law has become more complex, which has increased the cost of filing for bankruptcy and has created differences between how large corporations, as opposed to small businesses and individuals, approach Chapter 11 filings.

In addition, the article describes that certain bankruptcy maneuvers, which are considered “run-of-the-mill” today, were in fact developed over the course of decades by restructuring professionals who were handling bankruptcy matters on behalf of clients. For example, Mr. Cousins told Law360 that 35 years ago, the late U.S. Bankruptcy Judge Helen Balick issued a decision in Delaware that continues to influence today’s bankruptcy practices. Specifically, in 1990, Continental Airlines had filed its second bankruptcy in Delaware. Judge Balick allowed the matter to stay in Delaware where the airline was incorporated, notwithstanding that its headquarters and operations were located outside of the state.

Mr. Cousins explained that to this day, debtors file in districts that may have few ties to their operations because they hope to appear before judges who can hear issues and make rulings quickly. He noted, "You want to go to the court that's going to be business-friendly.” Mr. Cousins also commented on the legal environment at the time that Judge Balick issued her decision, stating, "The early- to the mid-90s is when the floodgates started opening up in Delaware where people were using it more strategically."

Mr. Cousins serves as co-chair of Lewis Brisbois’ Bankruptcy & Insolvency Practice. He also is a member of the firm’s Complex Business & Commercial Litigation and Real Estate & Land Use Practices. Mr. Cousins has been involved in many of the largest and most complicated business reorganizations, out-of-court restructuring matters, workouts, liquidations, and distressed acquisitions and sales in Delaware’s federal and state courts, as well as in other jurisdictions across the country.

Learn more about Lewis Brisbois’ Bankruptcy & Insolvency Practice here.