June 17, 2021
Treble Damages for ‘Willfulness’ Won’t Automatically Result in Nondischargeability
The lack of specific findings of fact by the arbitrator meant that a treble damage award for willful breach of contract was dischargeable.
2nd Circuit, New York, New York Eastern DistrictJune 16, 2021
Acevedo Doesn’t Bar Compensation for Services Before Entry of a Retention Order
So long as there was no delay in filing the retention application, Judge Tighe identified statutory and practical reasons for allowing compensation for services rendered before entry of a retention order.
9th Circuit, California, California Central DistrictJune 15, 2021
Ninth Circuit Puts Limits on the Supreme Court’s Preclusion of Equitable Remedies
Law v. Siegel didn’t bar bankruptcy courts from invoking doctrines of claim and issue preclusion, the Ninth Circuit says.
9th CircuitJune 14, 2021
Chapter 13 Debtors Lost Appreciation in Property After Conversion to ‘7’
On an issue where the courts are split, a judge in Washington State says that the debtors lose the post-petition appreciation in the value of estate property when a chapter 13 case converts to chapter 7.
9th Circuit, Washington, Washington Western DistrictJune 11, 2021
Sixth Circuit Creates a Split by Requiring Dismissal of an Abusive Chapter 13 Filing
Disagreeing with two other circuits, the Sixth Circuit finds no power in the bankruptcy court to avoid dismissing a chapter 13 case even if the debtor filed repeatedly in bad faith to avoid foreclosure.
6th CircuitJune 10, 2021
Unlike IRAs, Debtors Keep Inherited 401(k)s Because They Aren’t Estate Property
Exemptions never come into play with inherited 401(k)s because they aren’t estate property in the first place, Judge Hodges explains.
4th Circuit, North Carolina, North Carolina Western DistrictJune 09, 2021
Increasing Debtor’s Profit or Revenue Isn’t Required to Establish an ‘Admin’ Claim
An administrative creditor isn’t a ‘guarantor’ of the success of the project, Delaware’s Bankruptcy Judge Goldblatt says.
3rd Circuit, DelawareJune 08, 2021
Federal Common Law Doesn’t Define a Business Trust Eligible for Chapter 11
Recent Supreme Court authority supports the conclusion by Delaware’s Judge Sontchi that law from the jurisdiction of incorporation, not federal common law, determines what is or isn’t a business trust eligible for chapter 11.
3rd Circuit, DelawareJune 07, 2021
In ‘Related To’ Jurisdiction, District Court Applies the Bankruptcy Rules, Circuit Says
If the district court is adjudicating a suit with “related to” jurisdiction under 28 U.S.C. § 1334(b), the district court applies the Bankruptcy Rules, not the Federal Rules, the First Circuit says.
1st CircuitJune 04, 2021
Arbitration Clause Results in Temporary Stay of ‘Core’ Proceedings in Bankruptcy Court
Decision by Bankruptcy Judge Michelle Harner demonstrates the flaw in the Fourth Circuit’s rule requiring parallel proceedings in bankruptcy court and in arbitration when disputes are both core and non-core.
4th Circuit, Maryland