April 26, 2023
Supreme Court Hears Oral Argument on Tribal Sovereign Immunity
It appears as though the Supreme Court will decide Lac du Flambeau based entirely on textual analysis of Section 106(a), which does not explicitly abrogate sovereign immunity as to Native American tribes.
Supreme CourtApril 25, 2023
Lack of Reliance on Representation Isn’t a Defense to a Constructive Fraudulent Transfer
Damages for a constructively fraudulent transfer were the difference between what the buyer paid and what the business was really worth, based on accurate income and expenses.
2nd Circuit, New York, New York Eastern DistrictApril 24, 2023
Rule 2004 Discovery Is Available to Creditors in Chapter 15 Cases, California Judge Says
Judge Bason of Los Angeles would permit a creditor in ‘limited circumstances’ to undertake Rule 2004 discovery in a chapter 15 case to further the court’s ‘assistance of the foreign main proceeding.’
9th Circuit, CaliforniaApril 22, 2023
Clark v. Rameker Didn’t Say that All Inherited IRAs Aren’t Exempt
In Section 522(b)(3), Congress made sure that ‘retirement funds’ are exempt in bankruptcy even if they aren’t exempt in states that don’t permit federal exemptions.
8th Circuit, Iowa, Iowa Northern DistrictApril 21, 2023
A Buyer Is in Good Faith Despite Using Economic Leverage, Fifth Circuit Says
Supposedly nefarious facts aren’t evidence of bad faith if they were disclosed to the bankruptcy judge who nevertheless made a finding of good faith.
5th CircuitApril 20, 2023
Another Court Holds that Debts of Corporate Sub V Debtors Can’t Be Nondischargeable
Contrary to the Fourth Circuit, five bankruptcy courts have now held there’s no such thing as nondischargeability for corporate Sub V debtors. The question is now before the Fifth Circuit.
11th Circuit, Florida, Florida Middle DistrictApril 19, 2023
A Statement ‘For Informational Purposes’ Can Still Be a Stay Violation, BAP Says
A BAP strictly enforced the stay against a mortgage servicer who improperly listed a pre-petition debt in the portion of the monthly statement showing the next post-petition payment.
9th CircuitApril 19, 2023
Supreme Court Holds: § 363(m) Isn’t Jurisdictional; It’s a Limitation on Appellate Relief
The Supreme Court’s MOAC decision contains language casting doubt on the validity of the doctrine of equitable mootness.
Supreme CourtApril 18, 2023
Notification of Bankruptcy Requires Lifting Garnishment of Post-Petition Income
Although the automatic stay does not require turning over property garnished before bankruptcy, a creditor may not continue garnishing property after filing, Judge Burgess says.
11th Circuit, Florida, Florida Middle DistrictApril 17, 2023
Second Circuit Holds: The Party to a Contract Alone May Assert a ‘Cure Claim’
Someone who is not a party to the contract being assumed can’t assert a cure claim, even though Section 365(b) doesn’t give the counterparty the sole right to demand a cure on assumption of an executory contract.
2nd Circuit