January 26, 2021
Insurers Don’t Pay Bankruptcy Costs in a Mass-Tort Chapter 11
A voluntary chapter 11 case is neither a ‘suit’ nor a ‘claim’ against a debtor giving rise to an insurer’s duty to defend.
7th Circuit, Indiana, Indiana Southern DistrictJanuary 25, 2021
Refusal to Arbitrate the Validity of a Security Interest Is Tersely Affirmed in California
Are the lower courts out of step with the Supreme Court when it comes to enforcement of arbitration of disputes in bankruptcy court?
9th Circuit, California, California Eastern DistrictJanuary 22, 2021
No Retroactive Adequate Protection in Chapter 13, Judge Trust Says
Long Island judge follows ‘Burt’ Lifland and rules that a secured creditor is not entitled to adequate protections for periods of time before filing a motion giving rise to adequate protection.
2nd Circuit, New York, New York Eastern DistrictJanuary 21, 2021
The Standards for a Pre-Filing Injunction Against a Vexatious Litigant
The record as a whole and the likelihood of further abuse justify a pre-filing injunction.
2nd Circuit, New York, New York Eastern DistrictJanuary 20, 2021
Promising Payment in Full to Everyone Doesn’t Warrant Confirmation by Itself
Chapter 11 can’t modify a nondebtor’s guarantee of a debtor’s obligations, absent consent from the lender.
9th Circuit, Washington, Washington Eastern DistrictJanuary 19, 2021
Cross-Collateralization Turns Two Loans into One Claim in the Fifth Circuit
When personal property loans are cross-collateralized, a chapter 13 plan must use the same option for cramming down both loans, the Fifth Circuit says.
5th CircuitJanuary 18, 2021
Sanction for Discharge Violation: $450 in Actual Damages and $10,000 for Attorneys’ Fees
When there’s ‘no fair ground of doubt’ about a discharge violation, the creditor should settle or make an offer of settlement to avoid larger damages after trial.
11th Circuit, Florida, Florida Middle DistrictJanuary 15, 2021
Third Circuit Upholds Equitable Mootness over a Dissent
Dissenter would have upheld horizontal gifting on the merits.
3rd CircuitJanuary 14, 2021
Even with Knowledge of Bankruptcy, Discharge Contempt Requires Notice of Discharge
The Ninth Circuit BAP says there must be knowledge of the discharge order to find contempt, even when the debtor continues the same conduct that violated the automatic stay.
9th CircuitJanuary 14, 2021
Supreme Court Holds that Merely Holding Property Isn’t a Stay Violation
Justices rule that affirmative action is required before withholding property amounts to controlling estate property and results in an automatic stay violation.
Supreme Court