February 27, 2024
Lack of Financial Distress Doesn’t Divest a Court of Subject Matter Jurisdiction
Two North Carolina Courts have held within two months that the Bankruptcy Clause doesn’t demand ‘financial distress’ to establish subject matter jurisdiction.
4th Circuit, North Carolina, North Carolina Western DistrictFebruary 26, 2024
Fifth Circuit: MOAC Didn’t Weaken Section 363(m) on Statutory Mootness for Sales
The Fifth Circuit used Section 363(m) to avoid ruling on equitable mootness following consummation of a chapter 11 plan.
5th CircuitFebruary 23, 2024
Rule 9006(b) Permits Bankruptcy Courts to Extend Statutes of Limitations
Extending statutes of limitations does not affect ‘substantive’ rights, thus the Rules Enabling Act does not preclude a rule from allowing an extension, Judge Julie Manning says.
2nd Circuit, ConnecticutFebruary 22, 2024
Equitable Mootness Didn’t Stop the Court from Taking Away Stock Bought in a Plan
If a confirmation order is found not to be equitably moot on appeal, the debtor can’t raise equitable mootness again on remand.
11th Circuit, Florida, Florida Southern DistrictFebruary 21, 2024
Supreme Court Won’t Decide Whether ‘13’ Trustees Are Paid When Plans Aren’t Confirmed
Any day now, the Second Circuit could create a split of circuits importuning the Supreme Court to decide whether chapter 13 trustees are paid fees even if no plan is confirmed.
Supreme CourtFebruary 20, 2024
Shareholder Standing Scrutinized in a Case that Presages Truck Insurance
Can Section 327(c) be unconstitutional as applied if it deprives shareholders of standing when the estate might be solvent?
3rd Circuit, DelawareFebruary 16, 2024
A Stipulated Dismissal Won’t Serve as the Basis for Res Judicata, a/k/a Claim Preclusion
A stipulated dismissal, even with prejudice, doesn’t mean that the claims were ‘actually litigated’ for the purpose of claim preclusion, the Sixth Circuit says.
6th CircuitFebruary 15, 2024
Third Circuit Creates a Common Law Alternative to Chapter 15
Prof. Westbrook believes there is no common law alternative to chapter 15.
3rd CircuitFebruary 14, 2024
May a Trustee Attach a Preference Defendant’s Property Before Judgment?
If the requisites for a preliminary injunction are met, a trustee might be able to freeze some of a preference defendant’s assets when a prejudgment attachment is not available.
9th Circuit, California, California Central DistrictFebruary 13, 2024
Eight Lower Courts Disagree with the Fourth Circuit on Sub V Nondischargeability
Nondischargeability for Sub V corporate debtors is sub judice in the Fifth Circuit.
7th Circuit, Illinois, Illinois Northern District