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ABI Journal

Rochellel's Daily Wire

May 12, 2022

An Initial ‘Recipient’ of a Fraudulent Transfer Isn’t Always Liable Under § 550(a)(1)

The Second Circuit says that an initial ‘recipient’ isn’t automatically an initial ‘transferee’ liable for an avoidable transfer under Section 550(a)(1).

2nd Circuit

May 11, 2022

Circuits Possibly Split on Bankruptcy as Discharging Coal Act Liability for Health Benefits

Over a dissent, the Eleventh Circuit held that a 1995 chapter 11 plan discharged the liability of ‘related persons’ to pay health care benefits when a coal producer defaulted on the obligation in 2016.

11th Circuit

May 10, 2022

Circuits More Deeply Split on Waiver of Sovereign Immunity for Native American Tribes

Over a vigorous dissent, the First Circuit Joins the Ninth Circuit by holding that Section 106(a) waives tribes’ sovereign immunity.

1st Circuit

May 09, 2022

Harmful Logic or Legal Conclusions Standing Alone Don’t Confer Standing to Appeal

To establish constitutional standing to appeal, an appellant must seek to overturn the order below, the Sixth Circuit BAP says.

6th Circuit

May 06, 2022

It’s Not Easy to Set Aside Releases for Fraud, Judge Whitman Holt Says

To settle with a trustee, a creditor is not required to volunteer damaging information.

9th Circuit, Montana

May 05, 2022

First Circuit Upholds Confirmation of Puerto Rico’s Debt Adjustment Plan

Federal preemption allowed rejection of the defined benefit pension plan for Puerto Rico’s teachers.

1st Circuit

May 04, 2022

Cert Granted to Decide: Is a Principal’s Liability for an Agent’s Fraud Nondischargeable?

The circuits are split on whether an innocent debtor’s liability is automatically nondischargeable when an agent or partner committed fraud.

Supreme Court

May 03, 2022

A Business Not Designed to Turn a Profit Is Eligible for Subchapter V, BAP Says

The Ninth Circuit BAP holds that litigating with the largest creditor and maintaining the corporation in good standing is sufficient to show that the debtor ‘is engaged’ in business on the filing date.

9th Circuit

May 02, 2022

Liens on Impounded Cars Are Judicial Liens that May Be Avoided, Seventh Circuit Says

The City of Chicago argued unsuccessfully that liens on cars are statutory because they arise automatically when the car is impounded.

7th Circuit

April 30, 2022

Bankruptcy Courts Have ‘Core’ Power to Order Fee Disgorgement, Third Circuit Says

Being seen at bar events in the company of those who appear in court doesn’t show judicial bias.

3rd Circuit