Ninth Circuit Bankruptcy Negotiation Competition

USC Gould students place second out of twelve schools

Story by Kelsey Schreiberg

Photos by Maria Iacobo

Attorneys specializing in bankruptcy, federal judges, and law students at the top of their game gathered for a full day of financial law competition at USC recently. After months of preparation, teams from 12 law schools in four Western states competed in a mock bankruptcy negotiation competition.

Dean Robert Rasmussen and Peter Benvenutti

The American College of Bankruptcy and the USC Gould School of Law co-sponsored the inaugural Ninth Circuit Bankruptcy Negotiation Competition. USC Gould Dean Robert Rasmussen welcomed students to the event, and emphasized the importance of developing practical skills.

“Part of being a lawyer is being able to read cases, but a lot of it is being able to work with [an] ambiguous situation and be a problem solver and that’s what we’re trying to instill in [students] through this competition,” Rasmussen said.

Participating law schools included USC Gould, University of California at Berkeley, UC Davis, UC Irvine, UCLA, University of Nevada-Las Vegas, University of Arizona, Chapman, Drexel, Brigham Young University, Thomas Jefferson, and Southwestern.

To begin, each team was given an identical mock bankruptcy problem. The objective was to avoid bankruptcy by successfully negotiating with the opposing side. Students had several months to develop a strategy for the case, and took turns representing both the creditors and the debtors.

Students studying between negotiations

Peter Benvenutti, chair of the American College of Bankruptcy Ninth Circuit Educational Programs Subcommittee and a partner at Jones Day in San Francisco, believes the competition provided students with a valuable learning experience.

“It allows them to see what a real-world problem looks like, to sort through it, evaluate it, and develop negotiating strategies that will be very similar to what they encounter in the real world,” Benvenutti said.

The USC team included 2L Stephen Opper, 3L Alison Weinberg, and 3L Carolyn Sissoko. George Webster, adjunct professor at USC Gould and senior shareholder of Stutman, Treister & Glatt Professional Corporation, coached the three students. Opper is pursuing a joint J.D./M.B.A degree.

Opper, Weinberg, and Sissoko capitalized on their common knowledge and individual strengths. They had taken several bankruptcy related courses together, including Corporate Organizations Chapter Eleven Bankruptcy and Secured Transactions.

The USC team with Professor George Webster

Students were evaluated both on their strategy and how well they interacted with other members of their team. Cynthia Nelson, a managing director at FTI Consulting Corporate Finance and Fellow of the American College of Bankruptcy, helped prepare the hypothetical financial situations.

“Students gained a better understanding of the dynamics of a negotiation and of how important it is to be on the same page regarding what the numbers are in order to [be] successful,” Nelson said.

After several rounds of negotiations, the winners were announced: University of Arizona College of Law won first place, the USC Gould School of Law placed second, and Drexel University Earle Mack School of Law came in third.  The competition rewarded students who were systematic in their approach, but also able to adapt to new situations.

USC students win second place at competition

“We had to assess the other side and their position, what we thought they might say, and the strengths and weaknesses both of our position and theirs,” Weinberg explained.

Ultimately, the event provided a practical learning experience, and hopefully, ignited a deeper interest in the insolvency sector of the legal profession.

“I hope students get inspired to think about a career in bankruptcy; it is a fascinating field, a place where lawyers add a lot of value,” Rasmussen said.