April 24, 2025
On a Split, Ninth Circuit BAP Holds: Misconduct in ‘11’ Doesn’t Prevent Conversion to ‘7’
Given that chapter 7 has remedies like denial of discharge for a debtor’s misconduct, bad faith in chapter 11 doesn’t allow dismissal on conversion to chapter 7.
9th CircuitApril 23, 2025
A Homeowners’ Association Is Not a ‘SARE’ and Is Eligible for Sub V of Chapter 11
A homeowners’ association is not a single asset real estate debtor because the HOA’s income doesn’t come from the common areas but from assessments paid by unit owners.
4th Circuit, North Carolina, North Carolina Eastern DistrictApril 22, 2025
Second Circuit Doesn’t Compel a Liquidating Trustee to Arbitrate with an Insurer
Following the Supreme Court’s Morgan v. Sundance, the appeals court interpreted an arbitration agreement like any other contract, with no policy favoring arbitration over litigation.
2nd CircuitApril 21, 2025
Section 107 Governs Sealing of Court Documents, Not Common Law, Third Circuit Says
Section 107 more broadly protects trade secrets and confidential information than does common law.
3rd CircuitApril 18, 2025
To Dismiss for ‘Loss or Diminution,’ the Focus Is on Losses After Filing, BAP Says
Losses before filing or during prior aborted reorganizations do not control dismissal of a new reorganization for ‘continuing loss or diminution,’ First Circuit BAP says.
1st CircuitApril 17, 2025
Nondebtor Releases Are Still Permissible in Chapter 15, Delaware Judge Says
Foreign reorganizations with nondebtor releases are not ‘manifestly contrary’ to public policy after Purdue, according to Delaware’s Bankruptcy Judge Thomas Horan.
3rd Circuit, DelawareApril 16, 2025
In Sub V, No Compensation for a Rehearing Motion Contrary to Circuit Authority
After the court had denied contract assumption, there was no compensation for keeping assumption alive pending appeal.
9th Circuit, California, California Eastern DistrictApril 15, 2025
Plan Confirmation Denied for Too Little Post-Confirmation Supervision by the Court
Bankruptcy Judge Littlefield insisted on supervision of post-confirmation legal fees when there was to be a ‘litany of litigation’ after confirmation.
2nd Circuit, New York, New York Northern DistrictApril 14, 2025
The Fate of Jackson Walker Is Now in the Hands of a District Judge from Another District
The district judge who excoriated Jackson Walker in a decision last year will now decide whether the firm must disgorge what it was paid in dozens of large chapter 11 cases.
5th Circuit, Texas, Texas Southern DistrictApril 11, 2025
In Pari Delicto Defense Doesn’t Apply to a Trustee Exercising Avoidance Powers
Because a trustee suing to recover a fraudulent transfer is acting in the interest of creditors, not the debtor, the in pari delicto defense does not apply, says Bankruptcy Judge Scott Clarkson.
9th Circuit, California, California Central District