September 06, 2022
Judge Predicts Seventh Circuit Wouldn’t Halt Earplug Lawsuits Against Nondebtor 3M
Judge Graham in Indianapolis sees the Seventh Circuit as interpreting ‘related to’ jurisdiction narrowly and not inclined to halt lawsuits against nondebtors without a direct effect on the bankrupt estate.
7th Circuit, Indiana, Indiana Southern DistrictSeptember 02, 2022
Collateral Estoppel Can Bar Use of Federal Rule 45 to Quash a Subpoena, Circuit Says
Third Circuit says: You can object to a Rule 2004 discovery motion or move to quash a subpoena under Federal Rule 45, but not both.
3rd CircuitSeptember 01, 2022
Bankruptcy Courts Always Have Post-Confirmation Jurisdiction for ‘Core’ Matters
The Third Circuit opinion by Thomas Ambro explained that the ‘close nexus’ test does not apply when a post-conformation dispute is ‘core’ or entails enforcing a court order.
3rd CircuitAugust 31, 2022
Solvent Debtor’s Unimpaired Creditors Get Higher Interest Rate, Ninth Circuit Says
Dissenter in the Ninth Circuit would have held that unimpaired creditors of a solvent debtor get no interest whatsoever, although impaired creditors are entitled to interest.
9th CircuitAugust 30, 2022
Filing ‘13’ Immediately After Renewing a Title Loan Might Be Bad Faith
Reversing the bankruptcy court, a district court says that renewing a title loan before filing might bar confirmation of a chapter 13 plan.
11th Circuit, Alabama, Alabama Middle DistrictAugust 29, 2022
Average Lateness and Bucketing Tests Confirm the Ordinary Course Defense
A district judge in Brooklyn applied the two most commonly used tests for the ‘ordinary course’ defense to uphold dismissal of preference complaints.
2nd Circuit, New York, New York Eastern DistrictAugust 26, 2022
Salary Paid by a Ponzi-Schemer Isn’t Necessarily a Fraudulent Transfer, Circuit Says
The Tenth Circuit dealt with the thorny question of which expenses paid by a Ponzi-schemer are fraudulent transfers.
10th CircuitAugust 25, 2022
Bankruptcy Judge Finds Liability for a Municipality’s Denial of Due Process Rights
A local government removed a lawsuit to bankruptcy court, but the bankruptcy judge turned around and slam-dunked the government for violating the plaintiff’s Fourteenth Amendment rights.
2nd Circuit, New York, New York Eastern DistrictAugust 24, 2022
Fifth Circuit Permits Gatekeeping to Serve the Function of Third-Party Releases
Adhering to the categorial prohibition of nondebtor third-party releases, the Fifth Circuit now allows a workaround to protect principal participants in chapter 11 cases.
5th CircuitAugust 23, 2022
Claims Agents Are Barred from Making Money on the Side from the Claims Docket
Bankruptcy Judge Sean Lane in New York barred a chapter 11 claims agent from selling the claims docket to a claims trader in return for a share of the fees earned by the trader.
2nd Circuit, New York, New York Southern District