Biography

David devotes his practice to helping clients resolve business disputes through bankruptcy, litigation, and negotiation. His bankruptcy and litigation experience includes representation of lenders, real estate developers, receivers, health care institutions, and municipalities.

David served for two years as a judicial law clerk to the Honorable Lynne A. Battaglia of the Court of Appeals of Maryland.

Representative Matters:

• Recently achieved a victory in successfully defending against a life-insurer’s attempts to rescind a multi-million dollar policy. Our client served as a court-appointed administrator of the insurance policy on behalf of 49 investors who had purchased fractional interests in the policy through a now-defunct viatical settlement company. The U.S. Court of Appeals for the Fourth Circuit affirmed a summary judgment decision declaring that the policy is valid and that all benefits under the policy were due and payable. This was a pivotal case not only for Gallagher’s client, but also for the secondary life insurance market. The Fourth Circuit’s decision represents the first time a federal appellate court has announced the general rule that an insurable interest exists where an insured purchases insurance on his or her own life with an intent to later assign the policy to a third party, so long as no agreement to assign the policy exists when the policy is issued. Click to read Viatical Vindication.



• In re Magna Entertainment Corp., et al., Case No. 09-10720, U.S. Bankruptcy Court for the District of Delaware. On behalf of the Mayor and City Council of Baltimore, successfully negotiated protections of the City's interest in the historic Preakness Stakes ensuring that race will continue to run at the Pimlico Race Course. The 135 year tradition of the Preakness Stakes in Baltimore was threatened by the bankruptcy of Magna Entertainment Corporation. Gallagher fought efforts to sell the Preakness free of any restrictions on its movement and successfully negotiated provisions in the confirmed plan of reorganization that preserved Maryland's statutory requirement that the Preakness be held at Pimlico Race Course except in the case of disaster or emergency.



• In re Honey Creek Kiwi, LLC, Case No 05-39524, United States Bankruptcy Court for the Northern District of Texas. Represented national affordable housing lender in defeating the cram-down plan of reorganization of the bankrupt owner of a 656-unit affordable housing project in Dallas, Texas.



• In re U.S. Gen New England, Inc., Case No. 03-30465, United States Bankruptcy Court for the District of Maryland. Represented the City of Salem, Massachusetts and seven towns in New Hampshire and Vermont in the Chapter 11 bankruptcy of an energy company. Successfully protected the municipalities’ interest in preserving tax revenue and real estate transfer taxes derived from hydro-electric projects owned and operated by the debtor.



• In re Baltimore Emergency Services, Inc., Case No. 02-67584, United States Bankruptcy Court for the District of Maryland. Represented a hospital group in the bankruptcy case of a national emergency services provider. Successfully objected to a post-confirmation settlement of the debtor’s claims against the purchaser of the debtor’s assets and liabilities, which sought to release claims of the hospitals. After prevailing in several contested hearings, negotiated a favorable settlement and recovery of hundreds of thousands of dollars for the hospitals.



• Maryland Bank & Trust Co., N.A. v. Mason et al., Case No. 08-C-04-570, Circuit Court of Maryland for Charles County. Represented a bank in a successful action to enforce multiple personal guaranty agreements securing a $1.8 million loan to a surgical practice in Charles County, Maryland.



• Successfully represented a theological institution against a dismissed student who filed a series of claims with various administrative bodies and in state and federal court. Gallagher's trial strategy focused on the unique procedural issues presented in the case and resulted in a published opinion from the U.S. District Court for the District of Maryland. Click to read L. Hall v. St. Mary's Seminary & University.



• In re Lamdin, 404 Md. 631 (2008). As special counsel to the Maryland Commission on Judicial Disabilities, assisted in an ethics prosecution of a state court judge.

Education

Salisbury State University, BA, magna cum laude, 1994

University of Maryland, Baltimore County, BA, 1998

University of Maryland School of Law, JD with honor, 2002; Order of the Coif

Court Admissions

Maryland State Courts
United States Court of Appeals for the Fourth Circuit
United States District Court for the District of Maryland
United States District Court for the District of Columbia
United States Supreme Court

Bar Admissions

Maryland

Bar and Professional Memberships

American Bankruptcy Institute
American Bar Association
Maryland State Bar Association
The Honorable James Macgill American Inn of Court