February 25, 2020
Supreme Court Uses a Bankruptcy Case to Limit the Use of Federal Common Law
High court rules that federal courts may make federal common law only to protect ‘uniquely’ federal interests.
Supreme CourtFebruary 24, 2020
Fifth Circuit’s Seminal Reed Decision Not Followed in Chapter 13
Bankruptcy judge finds no statutory power for a chapter 13 trustee to prosecute a lawsuit that the debtor was judicially estopped for pursuing.
5th Circuit, Louisiana, Louisiana Eastern DistrictFebruary 21, 2020
Second Circuit Plugs Another Hole in the Johns-Manville Asbestos Trust
Reinstating a ruling by Bankruptcy Judge Cecelia Morris, the appeals court held that the Manville asbestos trust covers both in rem and in personam claims by ‘future’ claimants against insurers and brokers.
2nd CircuitFebruary 20, 2020
Large Medical Bills Held Not to Be ‘Consumer’ Debts
Courts are split on whether large medical bills are consumer debts that invoke the means test and can bar relief in chapter 7.
6th Circuit, Ohio, Ohio Southern DistrictFebruary 20, 2020
Third Circuit Endorses an Alternative to Section 524(g) Trusts for Asbestos Cases
Appeals court says that using a trust for future asbestos claims rather than a bar order would be cheaper and avoid unnecessary litigation.
3rd CircuitFebruary 19, 2020
District of Columbia Rejects the Jewel Doctrine, Joining California and New York
Lawyers leaving a bankrupt firm are not required to pay over profits on hourly matters they take to their new firms.
D.C. CircuitFebruary 18, 2020
Bankruptcy Court Still Has Power to Enter Final Judgments by Default after Wellness
Failure to respond to a well-pleaded complaint implies consent for the bankruptcy court to enter final judgment in an avoidance action, Judge Glenn rules.
2nd Circuit, New York, New York Southern DistrictFebruary 17, 2020
Bankruptcy Court Had ‘Core’ Jurisdiction over Third-Party Dispute, Third Circuit Says
The bankruptcy court had ‘core’ jurisdiction over a dispute between two nondebtor third parties because the litigation involved the interpretation of a financing order.
3rd CircuitFebruary 14, 2020
Eighth Circuit Has No Per Se Rule Disallowing Exemptions for IRAs in Divorce
Eighth Circuit may have rejected blanket disallowance of exemptions for retirement accounts transferred in divorce.
8th CircuitFebruary 13, 2020
Seventh Circuit: Reclamation Claims Are Subordinate to DIP Financing
The 2005 amendments to Section 546(c) departed from state law under UCC § 2-702 by creating a federal rule making reclamation claims subordinate to existing secured claims and DIP financing.
7th Circuit