January 05, 2022
Split Grows on Barring Fraudulent Transfer Attacks on Real Estate Tax Foreclosures
Circuit courts differ on their understanding of Supreme Court precedent and are now split 3/3 on whether a real estate tax foreclosure can be set aside as a constructive fraudulent transfer.
6th CircuitJanuary 04, 2022
Lender Socked in Dallas with $17 Million in Damages for Breach of Contract and Fraud
A lender’s breach of a factoring agreement forced a company into bankruptcy that would have survived otherwise, Judge Jernigan says.
5th Circuit, Texas, Texas Northern DistrictJanuary 03, 2022
Opinion Finding Fraud Shows the Dangers in an Agreement to Finance Litigation
Chapter 7 trustee was precluded from terminating a lawsuit because a secured lender had been given the right to settle.
3rd Circuit, DelawareDecember 30, 2021
May Accountants Limit Liability for Professional Malpractice? Stay Tuned
New Jersey judge says that professionals may not be able to limit liability when malpractice is more than mere negligence.
3rd Circuit, New JerseyDecember 29, 2021
Although Unusual, Postpetition Retainers Are Permissible, Chicago Judge Says
The possibility that interim compensation allowances can be disgorged means that counsel won’t have an undue advantage over other administrative creditors, Judge Cleary says.
7th Circuit, Illinois, Illinois Northern DistrictDecember 28, 2021
Delaware Judge Issues Comprehensive Opinion on Makewholes and Unmatured Interest
Split grows on allowance of makewholes and what constitutes disallowed, unmatured interest.
3rd Circuit, DelawareDecember 27, 2021
PACA Debt Isn’t Nondischargeable, Chicago Judge Says, Siding with the Minority
Lower courts are split on whether violating a PACA trust results in a nondischargeable debt. The question is on direct appeal to the Eleventh Circuit.
7th Circuit, Illinois, Illinois Northern DistrictDecember 23, 2021
Creating a Split, Second Circuit Says that Section 363(m) Is Jurisdictional
The new decision from the Second Circuit is based on prior opinions where the appeals court said there was no “jurisdiction” when it would have been correct to say there was no “power.”
2nd CircuitDecember 22, 2021
Circuit Judge Finds No Constitutional or Statutory Right to Free PACER Access
At the courthouse, the public is only entitled to free access to papers filed in that district.
6th CircuitDecember 21, 2021
Owner of a Long-Defunct Business Didn’t Qualify for Subchapter V
Being an ordinary employee didn’t mean that the debtor was engaged in business to qualify for Subchapter V.
3rd Circuit, Pennsylvania, Pennsylvania Western District