October 18, 2022
Otherwise Valid Post-Petition Claims Sometimes Won’t Qualify for Administrative Status
Judge Sarah Hall declined to expand the exception in Reading for post-petition claims to have administrative status.
10th Circuit, Oklahoma, Oklahoma Western DistrictOctober 17, 2022
Debtor Can’t Compel Arbitration on an Involuntary Petition
A creditor can’t be compelled to arbitrate the validity of a claim before the bankruptcy court decides whether the involuntary petitioner’s claim is subject to a bona fide dispute.
6th Circuit, Tennessee, Tennessee Middle DistrictOctober 14, 2022
Another Court Holds that a Debtor Has a Property Interest in Contracts, Not Customers
Once the debtor loses the right to do business, taking customers for no consideration isn’t a fraudulent transfer, Judge Isgur holds.
5th Circuit, Texas, Texas Southern DistrictOctober 13, 2022
Misleading Advertising to Poach a Debtor’s Customers Is No Stay Violation
False advertising that violates non-bankruptcy law isn’t necessarily a violation of the automatic stay, New York district judge says.
2nd Circuit, New York, New York Southern DistrictOctober 12, 2022
The War Between National and Local Rates Continues in Eastern Virginia
Counsel run the risk of being paid lower local rates in ‘mega’ cases filed in the Eastern District of Virginia.
4th Circuit, Virginia, Virginia Eastern DistrictOctober 11, 2022
Court Halts States’ Police and Regulatory Suits against Non-Debtor Johnson & Johnson
In spreading the automatic stay, the bankruptcy court again employed the traditional analysis without recognition that the non-debtors are solvent.
3rd Circuit, New JerseyOctober 10, 2022
Buying a Claim Carries with It the Right to Assert Nondischargeability
Joining the majority of courts, Judge Grossman says that the debtor’s conduct, not the identity of the holder of the claim, determines nondischargeability.
2nd Circuit, New York, New York Eastern DistrictOctober 07, 2022
Abbreviating the Debtor’s Name on a UCC-1 Made the Security Interest Unperfected
Because Florida filing offices do not use ‘standard search logic,’ a financing statement must use the debtor’s precise, unabbreviated legal name.
11th CircuitOctober 06, 2022
Property Held in a Joint Tenancy Leaves the Estate on the Debtor’s Death
If a debtor owns property as a joint tenant with right of survivorship, the trustee has nothing to sell if the debtor dies.
7th Circuit, Illinois, Illinois Northern DistrictOctober 05, 2022
When Renewed Pre-Petition Contracts Can and Can’t Have Administrative Status
Claims under pre-petition contracts extended after bankruptcy can have administrative status if there was benefit to the estate, district judge says, reversing the bankruptcy court.
2nd Circuit, New York, New York Southern District