February 16, 2023
Losing a Motion to Reopen a Case Can Be a Victory for the Debtor (Sometimes)
An act of Congress that waived sovereign immunity for Marines at Camp Lejeune meant that personal injury tort claims did not arise when the injury was sustained.
4th Circuit, Virginia, Virginia Eastern DistrictFebruary 15, 2023
Nonseverability Won’t Make a Confirmation Appeal Equitably Moot in the Fifth Circuit
When it comes to overbroad exculpations and nondebtor releases, a nonseverability clause in a chapter 11 plan won’t invoke equitable mootness to dismiss an appeal from confirmation.
5th Circuit, Texas, Texas Southern DistrictFebruary 13, 2023
Sixth Circuit: Nondebtor Releases Are Ok in Chapter 11 but Not in Receiverships
Bound by Dow Corning, which permitted nondebtor releases, the Sixth Circuit had to explain why the same releases are not permissible in equity receiverships.
6th CircuitFebruary 13, 2023
Preliminary Injunction Didn’t Render a Contract Nonexecutory
A preliminary injunction in state court didn’t invoke comity or Rooker-Feldman to bar the bankruptcy court from rejecting an executory contract.
2nd Circuit, New York, New York Southern DistrictFebruary 10, 2023
Sometimes, a Settlement with No Admission of Liability Can Be Nondischargeable
To avoid automatic nondischargeability, the debtor in the settlement of a fraud suit must deny liability.
5th Circuit, Texas, Texas Eastern DistrictFebruary 09, 2023
Electric Power Held Not to Be Goods with a 20-Day Priority Under Section 503(b)(9)
An Oregon power company appears headed for the Ninth Circuit to decide whether electric power qualifies as “goods” to be accorded the 20-day priority.
9th Circuit, OregonFebruary 08, 2023
For the Cap on Lease Rejection Claims, Judge in the SDNY Adopts the ‘Time Approach’
Bankruptcy Judge Michael Wiles differed with his colleagues who in previous years had employed the ‘time approach’ in calculating a landlord’s rejection damages under Section 502(b)(6).
2nd Circuit, New York, New York Southern DistrictFebruary 07, 2023
Are Chapter 13 Creditors Entitled to Proceeds from a Post-Confirmation Tort Claim?
The Code and the Rules are unclear about a chapter 13 debtor’s obligation to disclose assets acquired post-petition that were not derived from income.
11th Circuit, Florida, Florida Southern DistrictFebruary 06, 2023
Stay Violator Held Liable for Debtor’s Attorneys’ Fees Incurred to Collect Damages
When a stay violator refused to reimburse debtor’s counsel for fees to stop the stay violation, Judge Rebecca Connelly awarded attorneys’ fees for time spent to collect attorneys’ fees.
4th Circuit, West VirginiaFebruary 03, 2023
Delaware Judge Says When Prejudgment Asset Freezes Are Ok Under Grupo Mexicano
If you want a prejudgment asset freeze, ask for equitable relief and the recovery of specific property, Judge Goldblatt says.
3rd Circuit, Delaware