January 14, 2020
Supreme Court Rules that ‘Unreservedly’ Denying a Lift-Stay Motion Is Appealable
Building on Bullard, the Supreme Court rules unanimously that a lift-stay motion is a “procedural unit” that’s appealable if the bankruptcy court “conclusively” denies the motion.
Supreme CourtJanuary 13, 2020
Debt of $46,000 Discharged Despite a Flagrantly False Loan Application
Even though the debtor defaulted, Judge Christopher Klein held a trial and ruled that the lender had not relied on a false loan application.
9th Circuit, California, California Eastern DistrictJanuary 13, 2020
Supreme Court Won’t Hear a Case to Compel Paying Puerto Rico Bondholders Currently
Supreme Court let a First Circuit opinion stand that barred bondholders from compelling payment during Puerto Rico’s restructuring under PROMESA.
Supreme CourtJanuary 10, 2020
Fifth Circuit Stretches Equitable Notions to Bend Plain Language
A nonprecedential opinion applies Fifth Circuit authority to achieve a result that’s equitable for the debtor and creditors, and maybe also for a personal injury defendant.
5th CircuitJanuary 09, 2020
Courts Interpret Brunner Too Harshly, Bankruptcy Judge Cecelia Morris Says
A debtor with a law degree but only $37,500 in gross annual income was permitted to discharge more than $220,000 in student loans.
2nd Circuit, New York, New York Southern DistrictJanuary 08, 2020
A Pennsylvania Gambling License Isn’t ‘Property’ Recoverable as a Fraudulent Transfer
Sovereign immunity required dismissal of a suit to recover the value of a gambling license because the suit wasn’t an ancillary exercise of the bankruptcy court’s in rem jurisdiction over a res.
3rd Circuit, Pennsylvania, Pennsylvania Eastern DistrictJanuary 07, 2020
Second Circuit Again Applies the ‘Safe Harbor’ to Protect Selling Shareholders in an LBO
The Supreme Court’s Merit Management opinion fails to persuade the Second Circuit to change the result in Tribune.
2nd CircuitJanuary 06, 2020
Returning a Fraudulent Transfer Absolves the Recipient of Liability, Fifth Circuit Rules
Assisting a debtor in effecting a fraudulent transfer with ‘actual intent’ isn’t enough to hold the transferee liable.
5th CircuitJanuary 03, 2020
Holding a Contempt Hearing May Be Ok, but the Remedy Might Violate Automatic Stay
A contempt hearing fell under the ‘criminal’ exception to the automatic stay, but jailing a debtor to coerce payment of a prepetition debt violated the stay, Judge Grossman ruled.
2nd Circuit, New York, New York Eastern DistrictJanuary 02, 2020
PACA Doesn’t Give Rise to Denial of Discharge for Defalcation, Chicago Judge Says
A PACA trust lacks the hallmarks of a trust, so a failure to pay a produce supplier doesn’t give rise to a nondischargeable debt for defalcation while acting in a fiduciary capacity, Judge Goldgar says.
7th Circuit, Illinois, Illinois Northern District